Finance

Open Banking – Frequently Asked Questions

December 13, 2022 | Written By: Daniel Kelly

Welcome to our guide on open banking! Open banking is quickly becoming an integral part of the financial services industry, and it is important to understand how open banking works and the implications it has on your experience. In this guide, we will cover what open banking is, how it works, the advantages and disadvantages, and the future of open banking. By the end of this guide, you should have a good understanding of open banking and how it may affect you. Let’s get started!

Am I automatically opted in to open banking?

Open Banking is not automatic, meaning that you must actively choose to participate in open banking and share your financial information with third parties.

How can I control who has access to my open banking information?

If you choose to participate in open banking, you can control who has access to your financial information by carefully selecting the third-party financial service providers that you share your information with. Before sharing your information with any third party, it is essential to carefully review their privacy policies and terms of service to ensure that they will treat your information with care and respect. It is also a good idea to regularly review the list of third parties to that you have granted access to your financial information, and revoke access for any parties that you no longer trust or no longer need access to your information.

How can I cancel access to my data?

If you have granted a third-party financial service provider access to your financial information through open banking, you can revoke their access at any time by following these steps:

  1. Find the account or accounts that you want to revoke access for. This information should be available in the app or website of the third-party provider, or in the app or website of your bank or other financial institution.
  2. Once you have found the relevant account or accounts, look for a setting or option that allows you to manage access to your financial information. This setting may be called “open banking,” “data sharing,” “third-party access,” or something similar.
  3. Within the relevant setting or option, look for the option to revoke access for a specific third-party provider. This may be a button or a link that you can click on to initiate the revocation process.
  4. Follow any on-screen instructions to complete the revocation process. This may include confirming your identity and providing a reason for revoking access.

After you have completed the process, the third-party provider will no longer have access to your financial information through open banking. Keep in mind that revoking access to your financial information through open banking will not necessarily prevent the third-party provider from accessing your information in other ways, such as through transactions that you initiate directly with them. If you want to prevent the provider from accessing your information altogether, you may need to take additional steps, such as closing any accounts you have with them or contacting them directly to request that they delete any information they have about you.

Can a regulated third-party provider make a payment from my account without me authorising it?

No – they will not be able to take unauthorised payments.

Open banking systems are designed to allow individuals to securely share their financial information with third parties, but not to allow third parties to make payments on their behalf without consent.

In general, open banking systems can be used with a wide range of financial accounts, including personal and business current accounts, credit card accounts, and investment accounts. Keep in mind that not all financial institutions or accounts may support open banking, so it is possible that some of your accounts may not be eligible for this service.

Can I use open banking if I don’t use online banking?

No you can not. You need an online or mobile banking set up for your payment account to use open banking

Is there a charge or cost to using open banking?

In most cases, there is no charge or cost for using open banking. Open Banking is typically provided free of charge by banks and other financial institutions. However, some third-party financial service providers may charge fees for certain services or features that they offer, and it is possible that using open banking to access these services or features could incur a charge or cost. It is a good idea to carefully review the terms of service and pricing information for any third-party financial service providers that you are considering using, to ensure that you understand any fees or charges that may be associated with their services.

What regulations do providers have to meet?

Third-party financial service providers that offer services through open banking systems are typically subject to strict rules of the FCA or European equivalent.

Does my bank or building society offer open banking?

It is possible that your bank or building society offers open banking, but this will depend on the specific institution that you are a customer of. Right now, the UK’s nine largest banks and building societies are mandated to make your data available via open banking. Other smaller banks and building societies can decide to offer the service.

Which banks and building societies offer Open Banking?

  • Advanced Payment Solutions Limited
  • Allied Irish Bank
  • Arbuthnot Latham & Co Limited
  • Bank Of Baroda (UK) Limited
  • Bank of Ireland UK
  • Bank of Scotland
  • Barclays
  • BFC Bank
  • C Hoare & Co
  • Citibank UK Limited
  • ClearBank Limited
  • Clydesdale Bank
  • Contis
  • Coutts & Company
  • Coventry Building Society
  • Creation Financial Services
  • Currency Solutions Limited
  • Cynergy Bank
  • Danske
  • FBN Bank (UK) Ltd
  • Foreign Currency Direct Plc
  • Ghana International Bank
  • Hargreaves Lansdown Savings
  • HSBC
  • ICBC (London)
  • Industrial and Commercial Bank of China
  • Investec
  • Jordan International Bank Plc
  • Lloyds Bank
  • M&S
  • MBNA
  • Metro Bank
  • Mizuho Bank
  • Monese LTD
  • Nationwide
  • NatWest
  • NewDay
  • Northern Bank Limited
  • OKEO LIMITED
  • Permanent TSB
  • Prepay Technologies
  • Project Imagine
  • Reliance Bank Ltd
  • Revolut
  • Royal Bank of Scotland International Limited, Luxembourg Branch
  • Sainsbury’s Bank
  • Santander
  • SG Kleinwort Hambros Bank
  • Spectrum Payment Services Limited
  • Starling Bank
  • Tesco Bank
  • The Access Bank UK Limited
  • The Bank of New York Mellon
  • The Co-operative Bank
  • The Governor and Company of the Bank of Ireland
  • The Royal Bank of Scotland
  • The Royal Bank of Scotland International
  • Tide Platform
  • TSB Bank
  • Turkiye Is Bankasi As
  • Ulster Bank
  • Ulster Bank Ireland DAC
  • Union Bank of India
  • Vanquis Bank
  • Virgin Money
  • Wells Fargo Bank, National Association
  • Wirepayer
  • Wirex Limited
  • Yorkshire Building Society

When I share my banking data via Open Banking, what information can companies be able to see?

When you share your data using Open Banking, companies can see the financial information that you have authorized them to access. This may include information such as your account balances, transaction history, and details about the financial products that you hold with your bank. It is important to note that you have control over which information is shared, and you can revoke access at any time.

How do I know Open Banking is safe?

The Open Banking system is regulated by the government and is designed to be safe and secure. To ensure that your data is protected, you should only share it with trusted third-party providers and make sure to use a secure connection when accessing your financial information.

Additionally, you can check to see if the provider has been certified by a regulatory body, such as the Financial Conduct Authority in the UK. This can provide an added layer of protection and give you peace of mind.

I am having problems paying for, receiving, or returning a product.

If you have any issues with a purchase please contact the retailer.

What if a payment is made that I did not authorise?

If you believe a payment has been taken without your authorisation, contact your bank or building society immediately.

What is Strong Customer Authentication?

Strong Customer Authentication (SCA) is a requirement under the European Union’s Second Payment Services Directive (PSD2) for electronic payments. It is designed to increase the security of online transactions by requiring the use of two or more independent authentication factors when a customer makes a payment. This can include something the customer knows (such as a password), something the customer has (such as a mobile phone), and something the customer is (such as fingerprint or facial recognition data). The goal of SCA is to make it more difficult for unauthorized individuals to access a customer’s financial information and make fraudulent payments.

We hope this guide has helped you understand open banking and the implications it has on the banking industry and customer experience. Open banking is sure to continue to evolve and shape the future of banking services, and this guide should have provided you with a good understanding of what open banking is and how it works.