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.

Am I automatically opted in?

No. You’ll only use open banking if you give your explicit consent to a regulated app or website. It’s always your choice.

You choose which regulated apps and websites you want to use – so you’re always in charge. You decide what information they can access, and for how long. No one gets access unless you say so.

What information will Open Banking enable Penny Post to be able to see?

We will only ask for permission to access the information we need. This includes: –

How do I cancel access to my data?

There are two ways to stop giving access to your data:

  1. Go to the regulated app or website, and withdraw your consent directly with them
  2. Contact your bank or building society to let them know you no longer want the regulated app or website to have access to your information

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.

How do I know Open Banking is safe?

Open banking has been designed with security at its heart – here’s how:

Where can I find more information about Open Banking?

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

All these organisations have published guides on open banking: Money Helper (formerly the Money Advice Service), Money Saving Expert and Which?