Open Banking includes the practice of securely sharing financial information electronically with customer consent. It was set up by the Competition and Markets Authority (CMA) in conjunction with the largest nine UK banks on behalf of the UK Government to bring more competition and innovation to financial services. Open Banking complies to PSD2.<\/p>\n\n\n\n
The second Payment Services Directive, or PSD2, is legislation adopted by the European Union in 2015 to promote the development and use of new financial technologies. Open Banking complies to PSD2 legislation and provides the technical framework (gateways or APIs) for the sharing of bank account information with customer consent.<\/p>\n\n\n\n
From 14 September 2019, new standards under PSD2 are scheduled to be introduced. These new standards impose changes to the way third parties access data from banks. As a result, some of the cloud software banks feed may be replaced by new direct bank feeds to ensure they\u2019re compliant by using Open Banking.<\/p>\n\n\n\n
The new feeds may be available for most banks in the UK, including the nine largest. Often referred to as the CMA9, these include banks like Barclays, HSBC, Santander, RBS or Lloyds.<\/p>\n\n\n\n
Open Banking moves us from a world where your bank controls the data they hold about you, to one where you own your data and can control how it\u2019s used. The cloud software bank feeds have enabled small businesses to connect their bank accounts to the software so that transaction data automatically flows in for easy reconciliation and greater visibility of cash flow.<\/p>\n\n\n\n
Businesses that are authorised to use Open Banking, are listed on the FCA\u2019s Financial Services Register<\/a> and on the Open Banking directory<\/a>. Security is at the heart of the Open Banking design:<\/p>\n\n\n\n Open Banking includes the practice of securely sharing financial information electronically with customer consent. It was set up by the Competition and Markets Authority (CMA) in conjunction with the largest nine UK banks on behalf of the UK Government to bring more competition and innovation to financial services. Open Banking complies to PSD2. The second …<\/p>\n