What is Open Banking?

What is Open Banking?

Chapter 1

Open Banking is a revolution in financial services that has the potential to transform all of our lives.

Our banks have looked after our money all of our lives, but when our lives change or we want to change our lives, the financial information that we need to buy a car, buy a house or pay for a wedding is locked up in our bank and not easily available. Open Banking offers all of us the choice to securely share our financial information with the businesses we trust, so the financial products and services we need the most are faster and more personalised. It means we get loans we can afford, saving and budgeting apps built around us, and mortgages that take hours to complete not days or weeks.

For the first time ever, Open Banking gives all of us the opportunity to control, own and use our financial information to improve our everyday lives.


What does Open Banking change?

Fundamentally, Open Banking has changed who has control over financial data. Previously, the banks held all of this data and their customers and account holders, you and I, couldn’t use or share this information with other financial providers in a quick and secure way. Anybody that has had to print and provide bank statements for a loan, mortgage or other financial product has experienced the limitations of the current system.

Open Banking puts the ownership and control of financial data back with us, the creators of this financial data.

The key factor in changing financial services for the better is providing the ability for all of us to use the financial data the banks hold about us to get the financial services we need faster, easier, at a cheaper rate and from any provider we choose.

This means that for example; instead of sending 3 months-worth of bank statements to a mortgage provider and waiting for those to be manually checked, you can simply connect the mortgage provider to your bank account and have a mortgage application decision in hours, not days.


How does Open Banking work?

Open Banking is all managed online, so just like logging into your online banking, you can grant permission for providers of financial services to see information from your bank account securely online. This could form part of an online application process, where you have the option to connect your bank account to the provider rather than sending in paper documents or it could form part of a sign-up process for a financial management app.

Your bank will only allow authorised and regulated financial services firms to connect with your bank account and they will also let you remove access to any business you’ve connected from within your online banking.


Have more questions?

Open Banking is brand new, so everybody has questions. This OpenWrks guide to Open Banking covers everything you need to know about Open Banking; from the rules and regulations enforcing it to the security standards placed around it and most importantly how we can all use it to improve our everyday lives

We are continuously updating this document, to ensure we’re always providing the most accurate and up to date view of the Open Banking landscape for you. If you have questions that we haven’t answered, just let us know.


Who are OpenWrks?

We’re OpenWrks and we build the technology that makes Open Banking work. Our toolkit makes it easy for people to share their bank account information securely with the businesses they trust. Then it helps those businesses make the right decisions for their customers – decisions that give all of us better access to the financial services we need the most.

We are authorised and regulated by the FCA as an Account Information Services Provider (AISP), enabling you to share your bank information with companies you trust. When using any Open Banking services you should always confirm that the provider is fully authorised by the FCA. You can find us on the FCA register here.

Chapter 1

What is Open Banking?

Everything you need to know about Open Banking.

Chapter 2

How we got here

Way back in 2013 The Competition and Markets Authority (CMA) started a review of the UK retail banking industry and financial...

Chapter 3

Who are the participating banks

9 UK based banks were ordered to create Open Banking APIs. These participating banks are referred to as the CMA9.

Chapter 4

How secure is Open Banking?

Open Banking is very secure - as secure as your online banking. The Open Banking API endpoints have been built by the banks...

Chapter 5

What data will be shared?

The information that you choose to share through Open Banking will vary depending on the service that you want to receive.

Chapter 6

How do I provide or remove permission?

Your online banking is the only place where you can control who has permission to see your bank account and for what purpose.

Chapter 7

What does AISP & PISP mean?

To be fully authorised through PSD2 to use the Open Banking APIs businesses have to be registered as either an AISP or PISP.

Chapter 8

Quickfire Open Banking FAQs

All your questions answered in our quick fire Open Banking FAQs.

Chapter 9

Open Banking jargon dictionary

Our Open Banking jargon dictionary has been put together to translate acronyms and keywords into simple terms.