Open Banking - Warning, know what you getting into

friolento

dinger said:

Shawbrook Bank has just wasted theirs and my time by allowing me to open an instant access esaver account which appeared as one of MSE's high-interest earners recently.  Please see the thread I started here. 

 https://forums.moneysavingexpert.com/discussion/comment/80183693#Comment_80183693 

Nothing was mentioned in the application that I would have to agree to what it appears to me to allow a third party to hack into my current/nominated account as part of the verification process. Open banking is a government initiative, of course, for the benefit of the consumer! It is described at the link below   

https://www.openbanking.org.uk/how-open-banking-can-help-consumers/ 

You are overreacting. There is nobody hacking into your account. OB is strictly regulated, and many consumers like it because it makes many transactions faster and more secure.

If you don't like OB, but can't avoid using it in the case of Shawbrook or some other bank, you can cancel the authorisation immediately after the respective transaction has been executed. You do this in your current account.

Be prepared that OB will become the norm for personal banking.

masonic

As you say, Open Banking is there for the benefit of consumers. One of the benefits is being able to securely share the legal owner of a bank account with an organisation to assist with AML/KYC checks, and to prevent a fraudster being able to connect an account not owned by you to siphon off your savings. This is far preferable in my view than requiring an initial deposit by cheque, and more secure than relying on a print-out of a digital bank statement sent through the post.

dinger

TiVo_Lad said:

dinger said:

Shawbrook Bank has just wasted theirs and my time by allowing me to open an instant access esaver account which appeared as one of MSE's high-interest earners recently.  Please see the thread I started here. 

 https://forums.moneysavingexpert.com/discussion/comment/80183693#Comment_80183693 

Nothing was mentioned in the application that I would have to agree to what it appears to me to allow a third party to hack into my current/nominated account as part of the verification process. Open banking is a government initiative, of course, for the benefit of the consumer! It is described at the link below   

https://www.openbanking.org.uk/how-open-banking-can-help-consumers/ 

A scare mongering post if ever there was one.

1. Shawbrook aren't "hacking" into your account. They are electronically validating that the account details you provide belong to you. It protects you and it protects them from both fraudulent activity and simple human error.
   
2. As your other post clear states it is "one-time" access, so it isn't being used for data mining. It's a one off check that you have the account you claim to hold.
   
3. Open Banking is permission based; you grant permission. If you don't wish to grant permission, you do not have to do so.
   

I'm afraid you're not being very complimentary to the audience if you think my post will scare them.

 1) I never said Shawbrook was hacking into my account. I was referring to the third party but will admit hacking was not the right word as that is unauthorized access whereas if I grant them access that obviously is not. 
2) "one-time" access, yes and a lot can be done in a computer in a very small amount of time!
3) Right, no mention of this requirement anywhere before or during the application process, or in the key product information and only alluded to in one clause of the T&C's 

dinger

housebuyer143 said:

dinger said:

Shawbrook Bank has just wasted theirs and my time by allowing me to open an instant access esaver account which appeared as one of MSE's high-interest earners recently.  Please see the thread I started here. 

 https://forums.moneysavingexpert.com/discussion/comment/80183693#Comment_80183693 

Nothing was mentioned in the application that I would have to agree to what it appears to me to allow a third party to hack into my current/nominated account as part of the verification process. Open banking is a government initiative, of course, for the benefit of the consumer! It is described at the link below   

https://www.openbanking.org.uk/how-open-banking-can-help-consumers/ 

If they can't verify your ID electronically then you can do this. They also accept a bank statement if you don't want to use open banking btw 

Thanks for your comment. I have not been offered that method.

dinger

TheWoodler said:

Open Banking is the way the industry is moving.

Perhaps you could take a look at ConsentsOnline (the partner used by Shawbrook) and other players in the Open Banking sector such as TrueLayer - doing your research in this way is quite useful when coming across new concepts in the sector. 

Altfi.com is a great source of information on developments in banking tech and the challenger banks, worth a read. I understand it can be quite intimidating what coming across a new concept, but they’re not doing anything they don’t already do, and Consents Online is backed by Equifax - so ID verification and transaction verification are at the heart of the process, not data mining. 

In regard to data mining, you haven't read the government's webpage.

housebuyer143

dinger said:

housebuyer143 said:

dinger said:

Shawbrook Bank has just wasted theirs and my time by allowing me to open an instant access esaver account which appeared as one of MSE's high-interest earners recently.  Please see the thread I started here. 

 https://forums.moneysavingexpert.com/discussion/comment/80183693#Comment_80183693 

Nothing was mentioned in the application that I would have to agree to what it appears to me to allow a third party to hack into my current/nominated account as part of the verification process. Open banking is a government initiative, of course, for the benefit of the consumer! It is described at the link below   

https://www.openbanking.org.uk/how-open-banking-can-help-consumers/ 

If they can't verify your ID electronically then you can do this. They also accept a bank statement if you don't want to use open banking btw 

Thanks for your comment. I have not been offered that method.

They don't offer it, but if you ask they will allow it.

Barkin

dinger said:

TheWoodler said:

Open Banking is the way the industry is moving.

Perhaps you could take a look at ConsentsOnline (the partner used by Shawbrook) and other players in the Open Banking sector such as TrueLayer - doing your research in this way is quite useful when coming across new concepts in the sector. 

Altfi.com is a great source of information on developments in banking tech and the challenger banks, worth a read. I understand it can be quite intimidating what coming across a new concept, but they’re not doing anything they don’t already do, and Consents Online is backed by Equifax - so ID verification and transaction verification are at the heart of the process, not data mining. 

In regard to data mining, you haven't read the government's webpage.

Can you be more specific?

Searching gov.uk for "data mining" returns >77000 hits... 

dinger

Barkin said:

dinger said:

TheWoodler said:

Open Banking is the way the industry is moving.

Perhaps you could take a look at ConsentsOnline (the partner used by Shawbrook) and other players in the Open Banking sector such as TrueLayer - doing your research in this way is quite useful when coming across new concepts in the sector. 

Altfi.com is a great source of information on developments in banking tech and the challenger banks, worth a read. I understand it can be quite intimidating what coming across a new concept, but they’re not doing anything they don’t already do, and Consents Online is backed by Equifax - so ID verification and transaction verification are at the heart of the process, not data mining. 

In regard to data mining, you haven't read the government's webpage.

Can you be more specific?

Searching gov.uk for "data mining" returns >77000 hits... 

This in my OP https://www.openbanking.org.uk/how-open-banking-can-help-consumers/  

TheWoodler

You’re not in a position to tell me what I have and haven’t read, but maybe this is the article about Open Banking you had in mind?

https://www.gov.uk/government/news/millions-of-customers-benefit-as-open-banking-reaches-milestone

Not so long ago, I didn’t know what Open Banking was, or anything about the major players in that industry. I read up about it to understand how it worked so I could be confident in using it. I would encourage you to read up about ConsentsOnline, the third party in this case, and how much it’s being rolled out across the financial sector. Even NS&I is using Open Banking now. 

Trusted third parties are quite normal across the financial sector and have been for many years. When you pay by credit card online a third party handles the transaction, not the shop with whom you’re placing an order. Even if you make a debit card deposit into a bank you’re redirected to a third party to complete the secure transaction. How is Open Banking different? 

wiseonesomeofthetime

No reference to data mining that I can see in that link.

In fact, there is this that makes it clear you are in control