Open Banking is a technology that gives you innovative ways to manage and move your money. It works by sharing your financial data such as the balance and name on the account and incoming and outgoing payments from your current accounts with apps and websites to help improve your banking experience. Only companies that have passed industry security checks can take part. So, it's safe, secure and convenient.
What is the purpose of Open Banking?
Launched by the UK Government in 2018, Open Banking was created to give consumers greater control over their financial data so they can make the right financial decisions. Rather than your data staying locked away with your bank, you get to choose when and how you’d like to share it.
Here are some examples of why consumers would choose to use Open Banking:
- Online Payments: Some online retailers and HMRC use open banking to allow direct bank payments without card details, facilitating payments for taxes like self-assessment, and stamp duty.
- Borrowing Options: Third parties can access your account data to tailor financial offers more closely to your needs.
- Financial Management: Open banking tools analyse your account data to identify areas for financial improvement, such as finding lower fees or better interest rates.
- Personalised Services: Open banking provides personalised budgeting advice, recommendations for financial products, and an enhanced banking experience.
Open Banking providers offer a range of services that help enable you to streamline your finances. If you have multiple bank accounts, you can view and control all of them from one central place - only approved providers can take part. So, on top of benefiting from greater control and convenience, you get the peace of mind of knowing that your data is completely safe.
How does Open Banking work?
All UK banks must let you share your current account, credit card and savings data with regulated Open Banking providers. But only with your permission.
For example, some regulated providers allow you to see all your accounts from different banks in one place. Some providers help you to budget better. Others allow you to make online payments in new ways.
We’re still in the early days of Open Banking. As time goes by, we and other regulated providers will develop new products and services that’ll make your day-to-day life easier and help improve your financial wellbeing.
What can Open Banking be used for?
Open Banking has transformed the level of control and personalisation that users can have over their finances.
You can connect multiple bank accounts and manage your money from one place. Certain apps provide personalised recommendations or even completely automate your budgeting - tracking your spending and making regular transfers to your savings account.
Other Open Banking providers simplify the process of online payments, allowing you to instantly transfer money to friends, family and certain digital retailers. Some banks even allow you to automate bill payments and pay tax bills through Open Banking providers.
What are the benefits of Open Banking?
It’s safe and secure
Open Banking is backed by the FCA (banking regulator) and all UK banks. You control who you share your financial data with. And only companies approved by the FCA can take part.
Different bank accounts all in one place
You can see all your accounts from any UK bank in one place. This makes it easier than ever to manage your money.
Innovation is just around the corner
Constant new developments will make everyday banking easier - whether that’s managing accounts, budgeting, spending money or running a business.
How to start using Open Banking
Open Banking is completely optional, so you’ll need to sign up if you want to get started. After following these few simple steps, you’ll be ready to take advantage of all the benefits that Open Banking has to offer.
1. Register for TSB Internet Banking.
You must be an Internet Banking or Mobile Banking customer before using Open Banking. Once you’ve registered for Internet Banking, you can download our app or simply log in online.
2. Find a regulated Open Banking provider.
Check the Open Banking Directory for a list of current providers. You’ll be asked by the provider to activate Open Banking and to share your banking data with them.
3. We’ll verify your safety and security.
You’ll be directed to our Open Banking portal where we will verify your identity using your Internet Banking login details.
And you’re all set up. Easy as 1, 2, 3.
If you ever change your mind, it’s just as simple to manage who’s got access to your data. Simply log into your Internet Banking account, look for ‘Your account tools’ and click ‘Manage your account data sharing’.
Am I automatically opted in to Open Banking?
No. While Open Banking is available to everyone, it is a completely optional service.
You’ll need to opt in if you’re interested, which can easily be done by following the steps outlined above.
If you ever decide that Open Banking isn’t for you, you can easily stop sharing your data at any time. Just log into your TSB Internet Banking account, go to ‘Your account tools’ and click ‘Manage your account data sharing’. From here, you’ll be able to see all the providers who currently have access to your data. Click ‘Stop sharing’, and your data will be instantly withdrawn.
Is Open Banking safe?
Open Banking is a highly secure and safe system, and poses no more risk than regular online banking. All Open Banking providers in the UK must be approved by the Financial Conduct Authority (FCA), so you don’t need to worry about your data falling into the wrong hands.
You have complete control over which accounts providers can access, and which data they can access within them. Open Banking providers can only use this data to provide the specific services you have requested. On top of this, we make sure that every organisation is registered with the Open Banking Directory before agreeing to work with them.
All data transfers are completely regulated and processed using secure API technology. If you’re thinking of trying out any Open Banking service, always verify that your chosen provider is authorised. If they’re listed on the Open Banking Directory or the FCA Register - you can rest assured that they’re trustworthy.
What is Open Finance?
Announced in 2023, open finance is an extension of open banking, it uses similar data sharing methods for products such as mortgages, savings, and investments as well as pensions and insurance. Whilst it’s not available right now, you can read more on open finance at openbanking.org.uk.
FAQs
Open Banking was introduced by the Competition and Markets Authority (CMA) to bring more competition and innovation to the banking industry. Over time, authorised providers such as banks, fintech start-ups and online companies will introduce new apps and services to help you manage your money.
Open Banking is safe and secure. Only providers authorised and regulated by the FCA can offer Open Banking services. You can find a list of regulated providers here.
You can find a regulated Open Banking provider at the Open Banking Directory.
- Log into TSB's Internet Banking as you normally would.
- Look for “Your account tools” on the right-hand side. Then click “Manage your account data sharing”.
- You can now view the companies you’re currently sharing your data with. Simply click “Stop sharing”.
