Open Banking is being considered one of the big changes to happen in 2018, but what does it really mean for you?
It was always the same. When you set up an account with your bank, all of your past purchases, payments, loans etc is held with them. Your information and data are theirs to keep, but not for long.
Instead of the bank being in control of your information, Open Banking is giving that control back to you. As of 13th January, you have the power to decide if you want to share your financial data with other third parties (such as other banks and services).
Open Banking is giving you back the power to choose, which is a huge deal considering customers never had a say on who their financial information could be shared with.
Want to hear the best part?
If you give another third-party service consent to hold your financial data, but then decide that you don’t want share that information, you have the power to revoke that consent! So not only do you get to choose who holds your information, you can also take that information out of their hands and back into yours.
Plus, if you do decide to share your data with an organisation, you can have a peace of mind knowing that your financial information will be safely secured, as these organisations will be most likely registered with the Financial Conduct Authority (FCA). You can find out more about the FCA here: https://www.fca.org.uk/about.
Due to Open Banking, banks are looking to develop apps that will allow you to manage your money from a single platform, so you can get a clear view of your accounts in one place. You can also find better deals on mortgages, loans etc by comparing them among various financial organisations based on your own situation.
Here at Basik Money, we believe in helping customers take control of their finances, which is why we believe that Open Banking will be an excellent change for 2018.