Lenders that use Open Banking 2023

Confused about how Open Banking works and curious to know which lenders offer it? We explain all you need to know.

There are a number of benefits to sharing your banking information. It can enable you to better manage your finances, analyse your spending and even help you get offered financial services tailored to your needs. We look at Open Banking in more detail.

What is Open Banking?

Open Banking is a term used to describe the process of enabling third-party financial service providers to securely access your banking and other financial data. To use Open Banking you will need to have online or mobile banking for your personal or business current account.

All UK-regulated banks must allow you to share financial data such as your spending habits, the companies you use, your account features and your regular payment details. You can choose to give access to current accounts, flexible savings accounts, e-money accounts and credit cards.

The aim of Open Banking is to encourage more competition and innovation in the financial services market, which should give you access to better products to help you manage your money.

In terms of applying for a loan, Open Banking enables lenders to see whether you meet their eligibility criteria by viewing your outgoings and income, which could increase your chances of getting accepted.

Services can be offered by high street banks or other companies. You can decide how your information is used and who it’s shared with. To share your account information, you will usually need to download an app onto your smartphone or log in to the website. You will then be asked to add details of different bank accounts, allowing the company to collate all of the information.

Lenders that use Open Banking in the UK

The number of loan providers that offer Open Banking in the UK is growing all the time. These include:

  • Bamboo Loans
  • Abound (formerly Fintern)
  • Likely Loans
  • Shawbrook Bank
  • Mr Lender
  • Koyo
Lender Loan Maximum loan amount Minimum income Link
Koyo Koyo personal loan £12,000 No minimum income specified Check eligibility
Bamboo Bamboo Personal Loan £8,000 No minimum income specified Check eligibility
Shawbrook Bank Shawbrook Bank Personal Loan £0 £15,000 Check eligibility
Abound Abound Personal Loan (formerly Fintern) £10,000 No minimum income specified Check eligibility
Late repayments can cause you serious money problems. See our debt help guides.

What are the benefits of Open Banking?

One of the benefits of Open Banking is that financial services can be specifically tailored to your needs. You may even be able to take advantage of cheaper interest rates. Shawbrook Bank, for example, is offering a 1% reduction in the APR on its personal loans if you share your Open Banking data.

What’s more, because Open Banking data allows lenders to look at your current account transactions and gain a better understanding of your finances, it could increase your chances of getting accepted for a loan, even if you’ve been rejected by other lenders before due to a lack of credit history.

What are the downsides of Open Banking?

Although Open Banking could increase your chances of getting accepted for a loan, it’s important to understand that you will still need to complete a credit check as part of your application and that means there are no guarantees of acceptance.

There’s also the added risk of data loss – even regulated firms aren’t immune from cyber attacks. In fact, consumer group Which? is concerned that Open Banking could lead to a higher number of authorised push payment (APP) scams, where fraudsters trick account holders into making a payment or transfer, often by posing as their bank or the police.

Is Open Banking safe?

Open Banking is regulated but it’s crucial that you only share your data with an authorised company. Authorised firms will be regulated by the Financial Conduct Authority (FCA) or another European regulator and will be listed on the FCA’s Register and/or the Open Banking Directory. If something goes wrong, you will only be protected by your bank if you share your data with an authorised firm.

All Open Banking services should only ask for permission to access the information they need to provide the service they’re offering. They must also comply with data protection rules, which means they must tell you exactly what data will be used, how long it will be used for and any actions they might need to take before you agree to sign up.

Open Banking uses rigorously tested software and security systems. You’ll never be asked to share your bank login details or passwords. If you have any problems, you can go to the free Financial Ombudsman Service.

Frequently asked questions

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