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.<\/p>
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.<\/p>
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<\/a>.<\/p> 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.<\/p> 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.<\/p> Services can be offered by high street banks or other companies. You can decide how your information is used and who it\u2019s 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.<\/p> The number of loan providers that offer Open Banking in the UK is growing all the time. These include:<\/p>Lenders that use Open Banking in the UK<\/h3>