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  • FIRST POST
    • MSE Rosie
    • By MSE Rosie 9th Jan 18, 3:15 PM
    • 88Posts
    • 40Thanks
    MSE Rosie
    Open Banking explained
    • #1
    • 9th Jan 18, 3:15 PM
    Open Banking explained 9th Jan 18 at 3:15 PM
    Hi!

    This is the discussion thread for the



    Click reply below to discuss. If you havenít already, join the forum to reply.


    Thanks folks,
Page 3
    • Gentoo365
    • By Gentoo365 13th Jan 19, 5:38 PM
    • 406 Posts
    • 222 Thanks
    Gentoo365
    Who will pay compensation if customer (A) is scammed by scammer (B) into using a the services of a genuine (Open Banking) app offered by company (C) to move money from their bank (D) to another bank (E)?

    If the banks have to act on instructions given via the open banking API, does that not increase the risk of fraud?

    ..or can banks refuse to accept instructions via this method.
    • John G Jones
    • By John G Jones 13th Jan 19, 6:29 PM
    • 531 Posts
    • 720 Thanks
    John G Jones
    Who will pay compensation if customer (A) is scammed by scammer (B) into using a the services of a genuine (Open Banking) app offered by company (C) to move money from their bank (D) to another bank (E)?

    If the banks have to act on instructions given via the open banking API, does that not increase the risk of fraud?

    ..or can banks refuse to accept instructions via this method.
    Originally posted by Gentoo365
    No-one, Iíd hope, no bank should ever be on the hook if they accept a request from a customer and act on it.
    • Chappers27
    • By Chappers27 14th Jan 19, 10:10 AM
    • 90 Posts
    • 86 Thanks
    Chappers27
    Open Banking is much safer
    Open banking is much safer than previous methods.

    Previously, you'd give your app provider (whoever was asking for access) your login credentials. This effectively gives them full access to your account, via screen scraping. They keep your account logged in, and built bots to extract the data they need. It is now banned under PSD2 for financial services.

    Open Banking has been forced on banks and providers. It is highly regulated. Only regulated companies can provide this service. It is based on READ-ONLY data. The customer is in control of what data is shared and can turn it off at any time. Since it is READ-ONLY, and based on APIs, it is akin to someone having a look at your bank statement and writing down the transactions.

    It is still very early stage and the problem at the moment is the categorisation. There arent very good categorisations at the moment because the existing payment systems dont do it properly. For example, you could pay for petrol at Sainsbury's and your statement will say 'Sainsburys', without telling you it was petrol you paid for.

    Incidentially, screen scraping is used by apps like Money Dashboard and is definitely used by WonderBill and Onedox. It is only a matter of time before screen scraping is banned in bills / utilities as well.

    In summary, read only open banking is 99% safer than existing methods.

    Paul Chapman (disclaimer: I manage AdminBox, a household bills dashboard)
    Last edited by Chappers27; 14-01-2019 at 10:12 AM.
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    • swindiff
    • By swindiff 17th Jan 19, 9:11 AM
    • 460 Posts
    • 222 Thanks
    swindiff
    Accessing all my accounts in one app does have appeal, but I was not prepared to give my banking details to a 3rd party app. However, I now notice that my Halifax banking app will allow me to access many of my other accounts, Lloyds, Santander, Natwest, etc. I feel more comfortable about using an existing banking app to do this than some other 3rd party app. What are peoples thoughts on this?
    • MoneySavingTart
    • By MoneySavingTart 17th Jan 19, 10:39 AM
    • 59 Posts
    • 15 Thanks
    MoneySavingTart
    I'd certainly feel more comfortable about using one of my existing providers to collate information from the others until such time as they started using the information to sell me further products or worse still, suggest I move funds to them!

    Every month I collect account information from bank accounts, ISAs, Share portfolios and P2P providers for both my wife and I and put into a spreadsheet to estimate net worth. I can't imagine the Halifax (or others) being able to do that lot reliably.

    MST
  • jamesd
    I feel more comfortable about using an existing banking app to do this than some other 3rd party app. What are peoples thoughts on this?
    Originally posted by swindiff
    Find out whether Halifax will use the information about your other accounts and transactions for anything other than just showing them to you.

    In general, expect that providers will abuse your trust by saying it's to show you, then also use any information they can get for marketing, credit scoring, reselling to other firms for marketing and anything else that enters their thoughts. Unless you find completely unambiguous guarantees saying they don't.
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