Open banking is a way of securly sharing account information with third parties. You can also choose to allow them to make payments from your everyday payment accounts on your behalf.

Sharing account information with third parties

You may already be familiar with fitness and food tracking apps. Having all your goals and information right in front of you is incredibly convenient, especially when you have a target in mind.

With Account Information Service Providers (AISP), third party providers can help you organise and track your money in a similar way. They can show you all of your payment accounts with numerous providers in one place, helping you manage your finances.

Make payments directly from your everyday payment accounts

When you use your computer or device to buy from an online retailer, you might decide to pay with a debit/credit card or PayPal.

With online banking, you also have the option to pay directly from your bank account to some online retailers, through third party providers that are signed up to offer this service. You may also see this referred to as Payment Initiation Services Providers (PISP). 

Yes, it’s secure – you’re in control of your personal information. No information will be shared without your consent. Businesses providing ‘open banking’ services also need to meet certain requirements designed to protect customers from financial and data loss.

Heard the term API?

API stands for Application Programming Interface – this technology allows different computer systems to communicate and share data securely. If you currently share information online or from your mobile then you’re probably already using it.