What is Open Banking and Why Does it Matter?
From today a fundamental change to the way people bank, manage and spend their money is under way. It has required a change in the laws controlling electronic banking, and comes with the advantage that from now on companies all not be permitted to add surcharges for using a credit card to pay online or by phone.
The Open Banking system should ensure that such access is given by the UK’s nine biggest current account providers in a secure way, and without the need for customers to reveal their online banking login details or passwords.
Until now banks have been the sole holders of all information about our past transactions and spending habits. Now banks and building societies must allow regulated businesses access to a customer’s financial data, but only with the customer’s permission. A bank can only block access if it suspects fraud or unauthorised access.