Ever connected an app to your bank account? If so you’re probably one of millions in the UK already making use of ✨Open Banking✨ And if not, get ready for some seriously eye opening stuff on just how Open Banking is the next step towards financial wellbeing, as well as just making your life a whole lot simpler.
what is open banking?
Open Banking is a process, regulated by the FCA, designed to put you in control of your own transaction data. It requires banks to let you share your data with other banks and third parties so they can help you budget, save, compare financial products, and manage your personal finances simply.
why does it exist?
Essentially, it stemmed from a lack of innovation in the banking and financial service sector. Back in 2016, the CMA (Competition and Market Authority) outlined how big banks weren’t competing enough and small banks were struggling to grow. This ultimately meant people were paying more than they should and not benefiting from ✨innovation✨
The CMA proposed Open Banking as a solution and its implementation began in 2018. Now, hundreds of thousands of people in the UK are using Open Banking every month.
what can open banking do for me?
Open Banking is fuelling some serious innovations in the realm of FinTech. For example, you can connect multiple bank accounts to the Good With app, meaning you can see comprehensive insights into your balances and transactions.
how does open banking work? is it safe?
Banks can share your data with third parties using something called an application programming interface (API). APIs allow software at one company to talk to software at another company. This technology has been around for ages and is actually used everywhere. It’s the reason you can watch YouTube videos on other websites, or use your Facebook login to create an account on some apps.
By law, every bank has to make an API available to third parties. But you can't just waltz in and use it. Companies need authorisation to access a bank’s Open Banking API, which is authorised and controlled by Open Banking regulations. This strict authorisation process is crucial for maintaining the safety and integrity of transactions within the realm of Open Banking.
Authorised companies have to prove they’ll keep your info safe and secure. Also, they aren’t allowed to casually rifle through your data. They can only access the info they need to specifically provide the service you’ve asked for. So, let’s say you use the Good With app to generate your Readiness Score™. We’ll crunch the numbers to personalise your learning pathway, but this data is carefully processed and stored safely in a secure database. Third parties can’t view your Open Banking data or do anything with your money, and the same goes for us!
✅ To do this, we use TrueLayer, a trusted API, to securely link your bank account.
does good with use open banking?
Oh yes. We operate strictly in read-only mode, which is a fancy way to say we can’t actually do anything with your money except see it with rose tinted lenses. We’re currently using the best of Open Banking, statistics, and machine learning to provide insights about users’ relationships with money as well as generate a personalised learning pathway tailored to you.
how do I use open banking?
Explicit permission from you 🫵 is needed in order for Open Banking to do its thing. For example, we’ll ask for your consent before redirecting you to TrueLayer to hook up your account and unlock more insights.
From there, you’ll be redirected to your banking app to explicitly give the thumbs up for TrueLayer to retrieve this carefully curated data. No login details or unnecessary sharing of info needed from your end.
Afterwards, we’ll start crunching the numbers so you don’t have to!