Open Banking...

chili1496

so what app would anyone suggest to use with open banking on ios?

Daliah

chili1496 said:

so what app would anyone suggest to use with open banking on ios?

Lots of apps use OB. For example, where banking apps offer you to view your accounts/balances with other banks, that uses OB. All the budgeting apps like EMMA etc use OB to pull information from your accounts. So do credit reference agencies which promise to give you a better score if you allow them to look at your accounts (your score remains as meaningless as before, just they have more information with which to sell you something else). All the major banking apps will also allow you to review/terminate the permission you have given to third parties to access  your accounts. All that is OB. 

There‘s also a new generation of banking apps which allow you to pull money from your current accounts, instead of sending the money to them. Examples for this include Tandem and Tesco Clubcard Pay+. Another example are the saving apps like Plum which automatically pull money from your current account. These apps all use OB under the covers. 

Daliah

HMRC now let you pay your tax through Open banking. I suppose this is progress as it makes it slightly less painful to pay your tax bill.....

I haven't used it myself yet, so don't know how quick or otherwise it is. If Tesco ClubCard Pay+ and Tandem Bank are anything to go by, it will be slow-ish but the advantage is that you don't have to mess about with setting up a payee/payee reference, or paying by card.

There might also be a concern that you will authorise HMRC to read your account for the next 3 or so months, as this is typically what happens if you authorise a payment directly from your bank account. I believe you can cancel that authorisation in your bank account but I have no practical experience of this as yet.

https://hmrcdigital.blog.gov.uk/2021/11/19/open-banking-payments-at-hmrc-a-team-making-history/

Emmia

Daliah said:

HMRC now let you pay your tax through Open banking. I suppose this is progress as it makes it slightly less painful to pay your tax bill.....

I haven't used it myself yet, so don't know how quick or otherwise it is. If Tesco ClubCard Pay+ and Tandem Bank are anything to go by, it will be slow-ish but the advantage is that you don't have to mess about with setting up a payee/payee reference, or paying by card.

There might also be a concern that you will authorise HMRC to read your account for the next 3 or so months, as this is typically what happens if you authorise a payment directly from your bank account. I believe you can cancel that authorisation in your bank account but I have no practical experience of this as yet.

https://hmrcdigital.blog.gov.uk/2021/11/19/open-banking-payments-at-hmrc-a-team-making-history/

My Barclays app has a list of providers you've authorised to access your accounts via open banking, and you can revoke access there. 

I've not checked the HSBC app (who I also bank with) for this though. 

I mainly use OB with EMMA - I find it's really good for having an overview of savings, credit card, current accounts, investments...

lr1277

Daliah said:

chili1496 said:

so what app would anyone suggest to use with open banking on ios?

Lots of apps use OB. For example, where banking apps offer you to view your accounts/balances with other banks, that uses OB. All the budgeting apps like EMMA etc use OB to pull information from your accounts. So do credit reference agencies which promise to give you a better score if you allow them to look at your accounts (your score remains as meaningless as before, just they have more information with which to sell you something else). All the major banking apps will also allow you to review/terminate the permission you have given to third parties to access  your accounts. All that is OB. 

 

Further to Daliah's comment, I do wonder if credit card companies and lending companies will ask for access to your current account, so they can download and analyse your spending? It would help them make better lending decisions or setting credit card limits. They could also see if your income was what you stated in your application.

Or perhaps, the requirement to open a certain credit card is that you close an existing credit card (much like a CASS transfer), then they could read the transactions on your existing credit card account to see if they wanted to open an account for you.

I don't know if credit card companies/lending companies will want to spend the money because the information gained may not add value to them, but I suppose it is a possibility.

Now that I have written this post, I wonder if mortgage companies will also want to access your current account details? I don't know if mortgage companies got burnt by people not having the income they stated on their application, but if they did, it may be a way forward. I was thinking specifically of those mortgages about 10-15 years ago where if you were self-employed and the mortgage company only had your word about your income.

If things go this way, I can see borrowing money will be a lot harder unless the lenders decide to overlook certain facts in the applicant's accounts.

Daliah

lr1277 said:

 They could also see if your income was what you stated in your application.

lr1277 said:

Now that I have written this post, I wonder if mortgage companies will also want to access your current account details? 

You assume a person has got one current account only. Whilst that may be the case for many people, I doubt any of the lenders would build their business and lending strategy on that assumption, and many people have more than one current account for very good reason, unconnected to their borrowing requirements. Lenders will still rely on information on your credit reference files and on National Hunter, and they won't hesitate to ask for actual proof of income, in the form of payslips or even confirmation from your employer.

lr1277 said:

Or perhaps, the requirement to open a certain credit card is that you close an existing credit card (much like a CASS transfer), then they could read the transactions on your existing credit card account to see if they wanted to open an account for you.

Not sure Open Banking extends to credit card accounts. I think it is current accounts only. Not savings, not loans / mortgages, not investments. In any case, I am one of presumably many consumers who would be reluctant to share the minutae of their credit card spending with other potential credit card companies. They got enough data about me on the CRA files to decide whether they want to give me credit, they don't need to know where I spent how much. Though I appreciate they would probably want to know where I spend my money, so they can sell me more

Zanderman

Daliah said:

lr1277 said:

 They could also see if your income was what you stated in your application.

lr1277 said:

Now that I have written this post, I wonder if mortgage companies will also want to access your current account details? 

You assume a person has got one current account only. Whilst that may be the case for many people, I doubt any of the lenders would build their business and lending strategy on that assumption, and many people have more than one current account for very good reason, unconnected to their borrowing requirements. Lenders will still rely on information on your credit reference files and on National Hunter, and they won't hesitate to ask for actual proof of income, in the form of payslips or even confirmation from your employer.

Or perhaps, one day, info from HMRC if they really want to know.

As Daliah says, relying on 'a current account' would be very unhelpful, as many people have several.  So I really don't think credit card companies or mortgage companies will start wanting access to current accounts.

It would be a minefield!   Interpreting the plethora of transactions on those would be extremely difficult - even if just one account, but amazingly complex with more, some of them joint. 

Whereas a credit reference file or similar gives all the info they want with no hassle.