Consumer

Open banking in a nutshell.

Open Banking is an exciting development that will transform the customer banking experience, helping consumers and businesses use their financial transaction data to easily access products and better understand their finances.

In a nutshell, the industry is making some changes that mean, as long as you give permission, your financial data can be securely accessed by businesses that you would like to use to either search for a financial product or directly buy a financial product. You might have heard of the phrases, APIs, or Application Programme Interfaces? Put simply, these are the system rules that are being designed that enable the secure transfer of data from one piece of software to another. This will make it possible for developers to create applications that will give you a clearer idea of your finances and where you can make savings.

Open Banking was introduced to stimulate competition in the UK financial services sector and putting you back in the driving seat of how and when your data is used was seen as the catalyst to a more transparent and open way of managing your money. At the end of the day this should mean that you will be able to get a better deal.

How are the consumers protected and what can they do if they are not happy with the service?

Any organisation who wishes to provide the Open Banking service needs to have the licence and are regulated by the FCA. If the consumers are not happy with service or wish to make a complaint they first need to contact the regulated third party provider or bank or building society to discuss the complaint. If they are unhappy with the response received from your bank, building society or a regulated third party provider, consumers can contact the independent Financial Ombudsman Service.