Lenders that use Open Banking 2024

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
• Oakbrook Loans
• Finio Loans
• Toot Loans
• Monzo

Lender	Loan	Maximum loan amount	Minimum income	Link
	Bamboo Personal Loan	£15,000	No minimum income specified	Check eligibility
	Shawbrook Bank Personal Loan	£50,000	£15,000 per year	Check eligibility
	Abound Personal Loan (formerly Fintern)	£10,000	No minimum income specified	Check eligibility
	Finio Loans Personal Loan	£5,000	No minimum income specified	Check eligibility
	Monzo Bank Personal Loan	£25,000	No minimum income specified	Read our review
	Toot Loans Personal Loan	£5,000	£1,000 monthly income	Read our review
	Oakbrook Loans personal loan	£15,000	No minimum income specified	Read our review

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

• What can lenders see on Open Banking?

  Lenders will be able to see information such as your account details, regular payment details, including standing orders and direct debits, transactions like incoming and outgoing payments, plus account features and benefits including fees and overdraft payments.

• Can I get an Open Banking loan with no credit check?

  No, lenders will still want to carry out a credit check before deciding whether to offer you a loan. However, as well as looking at your credit history, lenders will use Open Banking to assess your overall financial health.

• Will Open Banking affect my credit score?

  No, using Open Banking will not affect your credit score.

• Can I proceed with my loan application without Open Banking?

  If you’re asked for Open Banking access to apply for a loan, you’ll need to be happy to share your data with the lender. If you’re not, you won’t be able to proceed with your application.

• What Open Banking providers are in the UK?

  Open Banking providers include Yolt, Credit Kudos, Bud, Plaid, Tink, TrueLayer and Yapily.

Written by

Emily Herring

Publisher

Emily Herring is a Publisher at Finder specialising in credit-based products including credit cards and business and personal loans. Emily has recently joined the Investments team. She has a Masters in Creative Writing & Publishing and a Bachelor of Arts in Communication & Media. See full bio

Emily's expertise

Emily has written 133 Finder guides across topics including:

• Loans & credit cards
• Building credit