Anybody heard of Open Banking?

gwynfil

I like to keep up to date with new initiatives in finance and banking.

I have been informed that my bank will be offering something called Open banking.

I may have misunderstood it, but it seems you can allow other people and companies access to your bank account. It sounds rather risky to me.

Two key issues that stood out for me about it are:[FONT=Arial,sans-serif]

'you'll be choosing to share data with other companies and letting them access your account information.'

'An alternative option, is to share your bank account login details directly.
This is where any company can request your personal login details. If you give them your login details the company will then log into your bank account as if they were you in order to use your data.'

This seems to go against all the ways I've ever banked before regarding security.

Has anyone heard of this? Will they ever use it if it is available with their bank? It is optional for now thank goodness.
[/FONT]

Zanderman

Old news, but only just actually happening.

Background at https://www.gov.uk/government/news/cma-paves-the-way-for-open-banking-revolution

Some analysis at http://www.wired.co.uk/article/open-banking-psd2-regulation-banking.

Nothing really to worry about if you don't give consent

18cc

Nobody can force you to give consent, but if you want this loan / mortgage / new account then....

Anthorn

But ... it's not "Open Banking" if we have to give consent. Banking can only be open if it applies to all customers of all banks. Otherwise it will fail.

Anyway, "Open Banking"is a development of the relatively older concept of "Transparency" and as we may be aware some banks are more transparent than others which may develop into "some banks are more open than others".

eskbanker

Anthorn wrote: »

But ... it's not "Open Banking" if we have to give consent. Banking can only be open if it applies to all customers of all banks. Otherwise it will fail.

Anyway, "Open Banking"is a development of the relatively older concept of "Transparency" and as we may be aware some banks are more transparent than others which may develop into "some banks are more open than others".

It's Open Banking in the sense that all banks are being obliged to create the capability for open access to their accounts in a standardised manner (through APIs and so on, as per https://www.openbanking.org.uk/), but it's only right and proper that this is only activated for customers who wish to operate in this way, so I fail to see why it would have to be mandatory for every customer in order to satisfy your personal definition?

Anthorn

eskbanker wrote: »

It's Open Banking in the sense that all banks are being obliged to create the capability for open access to their accounts in a standardised manner (through APIs and so on, as per https://www.openbanking.org.uk/), but it's only right and proper that this is only activated for customers who wish to operate in this way, so I fail to see why it would have to be mandatory for every customer in order to satisfy your personal definition?

Simple really: i.e. you have an Anybank plc account and don't allow open banking and I have an Anybank plc account and allow open banking. In that case we cannot say that Anybank plc has open banking because use of its API is allowed for me but not for you.

tempus_fugit

It's open because you have the option of using it or not. Like an open day at the local school, it's not any less open just because I choose not to go to it.

eskbanker

Anthorn wrote: »

Simple really: i.e. you have an Anybank plc account and don't allow open banking and I have an Anybank plc account and allow open banking. In that case we cannot say that Anybank plc has open banking because use of its API is allowed for me but not for you.

Speak for yourself - the FCA and CMA (and no doubt plenty of other TLAs) will say that Anybank plc complies with Open Banking (as in the recognised term), you can choose to apply your own odd little definition and believe what you like though!

Anthorn

eskbanker wrote: »

Speak for yourself - the FCA and CMA (and no doubt plenty of other TLAs) will say that Anybank plc complies with Open Banking (as in the recognised term), you can choose to apply your own odd little definition and believe what you like though!

It's an emerging technology but you state it as if it's all done and dusted. It isn't.

Look at it logically with common sense: The use of open APIs which enable third-party developers to build apps and services centred around the financial institution and open source technology to achieve it. How can it possibly be achieved if some customers have and some don't?

If what you say actually happens then the current understanding of open data and private data would have to be revised which would fly in the face of open banking.

eskbanker

Anthorn wrote: »

It's an emerging technology but you state it as if it's all done and dusted. It isn't.

No, I posted a link earlier to the initiative's site, which clearly explains the timescales. The introduction of the APIs is scheduled for January which is why all the banks have been issuing updated Ts & Cs in recent weeks, giving customers 60+ days notice of what's going to be happening and when, in response to which there have been a number of threads on here.

Anthorn wrote: »

Look at it logically with common sense:

You'll forgive me for struggling to keep a straight face when reading you saying that!

Anthorn wrote: »

The use of open APIs which enable third-party developers to build apps and services centred around the financial institution and open source technology to achieve it. How can it possibly be achieved if some customers have and some don't?

The APIs enable the banks and the apps to exchange data, subject to customer consent, but the number of customers who choose to take advantage of this doesn't affect how open any given bank is - the openness arises from the technical integration itself.

Anthorn wrote: »

If what you say actually happens then the current understanding of open data and private data would have to be revised which would fly in the face of open banking.

I think your understanding may fly in the face of everyone else's on this! I'd suggest you read up on what's happening under this initiative (there's plenty of info out there so you don't have to take my word for it) - whether or not you agree with its name of Open Banking is ultimately up to you of course but that's what it's called....

Anthorn

eskbanker wrote: »

No, I posted a link earlier to the initiative's site, which clearly explains the timescales. The introduction of the APIs is scheduled for January which is why all the banks have been issuing updated Ts & Cs in recent weeks, giving customers 60+ days notice of what's going to be happening and when, in response to which there have been a number of threads on here.

You'll forgive me for struggling to keep a straight face when reading you saying that!

The APIs enable the banks and the apps to exchange data, subject to customer consent, but the number of customers who choose to take advantage of this doesn't affect how open any given bank is - the openness arises from the technical integration itself.

I think your understanding may fly in the face of everyone else's on this! I'd suggest you read up on what's happening under this initiative (there's plenty of info out there so you don't have to take my word for it) - whether or not you agree with its name of Open Banking is ultimately up to you of course but that's what it's called....

Exactly who is "everyone else"? You're bogged down with the concept of "choice" and "customer consent" which displays a lack of understanding: Choice will come not in allowing or disallowing open banking itself which as I've already explained is ridiculous but which service taps into it, if any. That's where the objection of what developers will do with the open data they can access comes from. If we could disallow open banking itself then that objection is not valid.

I could add that developers will be able to use the open data anonymously to develop stats but that already happens.