The Open Banking Implementation Entity (OBIE) invites you to ‘Manage, move and make more of your money’. But what does ‘Open Banking’ actually mean for the customers of the UK’s largest banks.
OBIE was established following a report that found traditional banks ‘do not have to compete hard enough for customers’ business.’ Open Banking means that, from January 2018, customers with the UK’s largest banks have been able to share data in their current account securely with third parties – if they choose to.
Using Open Banking to get better deals or manage your money
The data that has been made available through Open Banking is a gold mine of information. It can show how much a customer spends on everything from gym subscriptions to groceries, to mobile phones and energy. Before now, the information was only available to the bank and you.
With Open Banking, you can give permission for your bank to share data with an app, a price comparison site or similar service. You might do this to look for better deals, manage your money better or even ask for a warning that you are close to going overdrawn. There is no requirement to use the service, and you can choose to withdraw from it at any time.
Security concern around Open Banking
Concerns have been raised that criminals could try to pass themselves off as regulated Open Banking firms to gain access to accounts. If you do share your data, be mindful of taking care to protect your personal data and only use reputable services.
For information of users: This material is published for the information of clients. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be accepted by the authors or the firm.