What you need to know about open banking

With open banking being a relatively new term, there may be a chance you’ve come across it before but not fully understood what it is or what it could mean for your business. In this article, we will be decoding some of the unknowns of open banking: how it works, if it is safe to use, and what it means for the future.

Put simply, open banking is an established way for customers to employ their financial data, by sharing it securely between a financial institution and an authorised third-party provider (TPP). Allowing external providers to access the financial information of individuals and businesses means that those participating in open banking can benefit from numerous financial products and services, tailored to their specific financial needs. For example, an individual might share their data with a TPP, in order to track their spending and monitor their saving goals, via an app on their phone.

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