Third Party Services/Third party providers (TPP)

Crater

The terms third party services and third party providers (TPP) has come up on a list of changes from my bank - organisations you can authorise to make payments out of your bank account to another organisation.

I've never heard of this before and can't find out anything much about it. Can anyone explain? The only clear hint I can find on Google is that this is "something which is developing" out there.

jonesMUFCforever

Google open banking - its the next big thing apparently!

mt99

see:

http://www.dailymail.co.uk/money/saving/article-4944932/Keep-money-identity-safe-Open-Banking.html

or google 'open banking'

eskbanker

mt99 wrote: »

see:

http://www.dailymail.co.uk/money/saving/article-4944932/Keep-money-identity-safe-Open-Banking.html

....if you're into hysterical (in both senses) scaremongering....

mt99 wrote: »

or google 'open banking'

....if you're looking for balanced and informative articles such as https://www.gov.uk/government/news/cma-paves-the-way-for-open-banking-revolution.

Or pieces on this very site such as https://www.moneysavingexpert.com/news/banking/2017/02/timetable-for-banking-shake-up-unveiled---with-multi-account-app-planned-for-next-year

Someone on another thread illustrated just how pathetic the quality of the DM "journalism" is by highlighting how the shouty headline ("Open Banking rules mean banks can share YOUR data: Here's how to OPT OUT and keep your money safe online") is followed by a somewhat less sensationalist reference to the actual facts within the piece itself:

How do I opt out?
In fact, you don't need to opt out. In order for any third party to have access to your data, you will have to opt IN.

Crater

thank you all. That has given me something to think about ... of course, the key words "open banking" did not appear on the list of "changes" supplied by my bank ... go figure ...

eskbanker

Shamsan wrote: »

thank you all. That has given me something to think about ... of course, the key words "open banking" did not appear on the list of "changes" supplied by my bank ... go figure ...

I could be wrong but suspect that the banks won't be very keen on these changes and see them as a necessary evil, so may be trying to downplay them.

In the brave new world, customers will be able to manage (some aspects of) their accounts without using the captive controlled environment of the bank's own portals, but the banks themselves will still ultimately be on the hook for security matters despite inherently needing to open this up to third parties. Identifying root causes of security breaches could become much more complex, laborious, expensive and contentious by virtue of additional parties being involved, although the use of standardised APIs with certified products and so on should minimise this.

Uxb

Shamsan wrote: »

thank you all. That has given me something to think about ... of course, the key words "open banking" did not appear on the list of "changes" supplied by my bank ... go figure ...

It is a result of the EU Payment Services Directive 2 of which the UK is implementing as it is compelled to do by the EU under the name of Open Banking.
I recall it is obligatory on all member countries by early 2018.
As '@esbanker says I doubt the banks are very happy any more than some posters here are.

So in short it is another "improvement" foisted on the UK by the EU
If you don't like it I suggest you complain to where it originated from....the EU, or you could vote out the EU Commission who decides these things....err no, sorry, I forgot you can't vote them out.

EssexExile

Uxb wrote: »

If you don't like it I suggest you complain to where it originated from....the EU, or you could vote out the EU Commission who decides these things....err no, sorry, I forgot you can't vote them out.

Or just not use it.

mgdavid

or just leave the EU
oh wait, :beer:
:j