We’re sure that you’ve seen the term “open banking”, but with Which? confirming that 92% of people have literally no clue as to what it is, we’d thought we’d provide a useful overview.
So what is it?
Launched in 2018, open banking is a secure way to give providers access to your financial information.
If you use online or mobile banking to view your bank account, it’s likely that you’ve got what you need to connect. The launch of open banking has seen lots of products launch to help you manage your money better.
Whatever your objectives are, whether it’s managing your money better, saving money or clearing debt, its likely that there’s a product out there for you! A full list of products can be found on the Open Banking Register.
Once you connect, the provider can download (and analyse) 12 months of transaction data. Providing this access then allows the provider to conduct repeat requests for your data for the next 90 days, after then you’ll need to reconnect to re-authorise the provider to give to access for a further 90 days.
Why was it introduced?
It was actually launched to create more competition and innovation within the financial services sector. The Competition and Markets Authority lobbied for is introduction on behalf of the UK Government.
Is it safe? By using it am I more subject to fraud?
If you are connecting your open banking data with an app, it’s likely that they are regulated by the FCA or working with a regulated provider. With open banking you connect directly with your bank, meaning that the provider never actually has access to your sensitive information like user names, passwords and account information.
Does Quo Money use screen scraping?
The simple answer is no, but let us explain what this means and why we don’t.
Screen scraping relates to the practice of having a “crawler” login to your account and downloading your data into a database – literally scraping the data down from the screen. Being that screen scraping requires access to your individual account, it does leave you a little exposed as it needs your login details to get access to your data.
At Quo Money, we don’t use screen scraping but use an API to connect directly to your bank who grants permission (at your request) to release your data securely. Any bank will not issue data to a company that is not officially authorised and regulated with the FCA.
Does it work with all accounts?
Unfortunately not (at time of writing).
Current open banking is limited to current accounts, but there are plans to launch it for savings accounts, credit cards and pre-paid cards shortly. That said, when using Quo Money you can add savings accounts, credit cards and pre-paid cards but for not they have to be updated manually.
Do I have to share my data?
No, its your choice whether or not you wish to connect.
When Quo Money launches within the Google Play Store and Apple AppStore, we will have secured our own AISP licence from the FCA – one of the many perks of the FCA sandbox. Currently in the UK only 32 companies with this licence.