Open Banking

What is Open Banking?

Open Banking is designed to offer you greater control, choice and freedom across your current accounts

Open Banking is one of a number of changes to the banking industry in the UK. It's designed to allow smaller and newer financial services providers to compete more easily with bigger banks which will lead to more choice for you.

It's a secure way for you to share your account information with regulated third parties and to send money directly from your current account. Open Banking could give you a more detailed understanding of your accounts and could help you make better financial decisions. For example, it could:

  • Allow you to see multiple current accounts in one place, helping you budget
  • Find better deals e.g. through price comparison websites – you may be able to get comparisons based on your actual account usage and spend
  • Send money directly from your current account

You can allow third parties to ask us for confirmation that you have available funds in your account to cover a payment you are making through a card provided by the TPP. The confirmation of funds check will return a yes or no answer.

If you decide that you want to share your current account information or send money in this way you need to give explicit consent to the service provider. You will also need to authenticate this with your bank using your internet banking security details.

You don't have to share any details through Open Banking if you don't want to – you're in control.

Only service providers who are appropriately regulated by the FCA (or another relevant financial service regulator in the EU) can use Open Banking.


Other acronyms

Financial Conduct Authority

The FCA is the independent body that regulates the UK's financial services industry

Competition & Markets Authority

The CMA is the UK statutory authority responsible for strengthening business competition

Payment Services Regulations 2017

Payment Services Regulations 2017 is the piece of UK legislation that helps enable Open Banking