Open Banking was launched in January 2018, in an effort to increase competition within the UK financial sector, and to facilitate closer relationships between big banks and new fintech companies (i.e. financial technology). The law will force the big banks to release data, to third parties if customers so choose.

The initiative will enable individual customers to easily share their banking data with approved third party institutions, putting customers more in control of their own data. The government believes this has the potential for far-reaching impact beyond banking, extending into lending, savings, investment and other areas ready for innovation.

This will make it easier for new products and services to help customers securely move and manage money more easily and efficiently.

At the moment, only the UK’s nine largest banks and building societies must make your data available through Open Banking. Other smaller banks and building societies can choose whether to take part in Open Banking.

The banks and building societies who currently offer Open Banking are: Allied Irish Bank, Bank of Scotland, Barclays, Danske, Halifax, HSBC, Lloyds Bank, Nationwide, NatWest, Santander, The Royal Bank of Scotland and Ulster Bank.

Every provider that uses Open Banking to offer products and services must be regulated by the FCA or European equivalent. www.openbanking.org.uk/

1. How do I control who has access to my information?
2. You choose which regulated apps and websites you want to use. You decide what information they can access, and for how long. No one gets access unless you say so.
3. Can a regulated third party provider make a payment from my account without me authorising it?
4. No. You’ll always need to approve any payment made from your account.

If you’re interested to try Open banking – contact your bank or check the website www.openbanking.org.uk

You can change your mind at any time and tell your bank to stop sharing your information, or you can cancel with the firm directly.

Only firms registered with the City watchdog, the Financial Conduct Authority, (or the European equivalent) can use the Open Banking system to access your data like this.

But, be warned that banks may not take responsibility if something goes wrong when you gave the third party permission to take funds from your account.

If the company is registered by the FCA and you notice a payment you didn’t authorise, you should be able to claim back the money from your bank — providing you haven’t been negligent with your account details.

If you have any experiences with scammers, spammers or time-waster do let me know, by email.