When is it happening?
14th September 2019
So what is Open Banking?
Open Banking is a series of reforms to how banks deal with your financial information, called for by competition watchdog the Competition and Markets Authority (CMA). It comes alongside a regulation with the snappy name ‘the second Payment Services Directive’ (PSD2), which also came into force on 13 January 2018.
In plain English, together they mean all UK-regulated banks have to let you share your financial data such as your spending habits, regular payments and companies you use (basically your bank, credit card or savings statements) with authorised providers offering budgeting apps, or other banks – as long as you give your permission.
The idea behind these changes is that they’ll bring more competition and innovation to financial services which, in turn, is hoped will lead to more and better products to help manage your money.
For example, you could connect your bank account to an app that would analyse your spending and recommend a new product like a credit card or savings account to save you money, or sign up to a provider which displays all of your accounts with multiple banks in one place so you have a better overview of your finances
To read the rest of this great article by Martin Lewis then click here.
What does this mean for our clients?
Check out these links on Xero and Quickbooks as it is likely that your current bank feed will need to be updated – don’t worry we are always here to help if you get stuck.
