Open Banking Explained

Like many financial organisations, with your consent, we use Open Banking to review your income and expenditure, speeding up our loan assessment process and most importantly saving you time.

So what is Open Banking?

Open Banking is the secure, quick and easy way to give providers like Penny Post access to your financial information. It’s an alternative to asking for copies of bank statements.

If you use online or mobile banking to view your current account, you can almost certainly start using Open Banking.

Why was it introduced?

Open Banking is designed to bring more competition and innovation to financial services and was set up by the Competition and Markets Authority on behalf of the UK Government.

Every provider that uses Open Banking to offer products and services must be regulated by the FCA or European equivalent. At present the biggest banks and building societies are enrolled on the Open Banking Directory, and others are coming soon.

Safe and secure

With Open Banking, you’re never asked to share your password or login details with anyone other than your own bank or building society.

Open Banking connects directly with your bank, meaning that the provider never has access to your sensitive information like user names, passwords or account information. Banks will not issue data to a company that is not officially authorised and regulated with the FCA.

It’s always your choice and you are in control. Safe. Secure. Simple.

How does Open Banking work?

This video shows you how Open Banking changes the way you access your information, and how you can choose to use it.

The launch of Open Banking has seen lots of apps and websites from regulated providers to create new services, save you time and help you manage your money better.

Can I change my mind?

Yes! Once you connect to Open Banking, the provider can download and analyse 12 months of transaction data for a period of 90 days. After this time Open Banking access is automatically revoked.

After we have made a loan decision, or at any time during the 90 days, you can request to revoke Open Banking access by contacting us.

Every time the provider accesses your Open Banking information you will be automatically notified.

How do I connect?

We use the Nivo App to connect you to Open Banking through a regulated provider called TrueLayer.

We will send you an Open Banking request via the Nivo App, asking for your permission. You can connect more than 1 bank, if you have several current accounts.

Remember, you are connecting directly with your bank or building society, so will need any bank or building society login details to hand. Your bank or building grants permission (at your request) to release your data securely through Open Banking.

Below are screen shots to show what the Open Banking connection request looks like on your screen.

Where can I find more information about Open Banking?

Click here for further information on Open Banking, including details of regulated providers.