Open banking

Regulated access to your bank data by other providers, with your permission.

What it means

Open banking lets authorised third parties access account information or initiate payments, with the account holder's consent.

Why it matters

It is what lets accounting software import transactions automatically, lenders assess affordability from real data, and payment providers offer bank-to-bank payment at lower cost than cards.

What it looks like in practice

Access is consent-based and time-limited, and consents need renewing periodically — which is why bank feeds stop working every few months.

What to watch out for

Only use FCA-authorised providers. Sharing full banking credentials with anything else is both a security risk and usually a breach of your bank's terms.

Where to get proper advice

The FCA register to check a provider is authorised.