What is Open Banking?
Open Banking is a series of UK Government reforms that legislate how banks deal with your financial information, called for by the Competition and Markets Authority (CMA). All large UK banks must now allow you to share your financial data – as long as you give permission. Other small regulated banks and building societies can also choose to take part in Open Banking, which means sharing your current accounts and credit cards with authorised providers.
The idea behind these changes is that they will bring more competition and innovation to Financial Services, which in turn, is hoped will lead to more and better products to help individuals manage their money. Open Banking is also a secure way of providing your bank statements to finance companies who are registered for this purpose.
Why and how are BFS using Open Banking?
As part of our underwriting process, we require sight of the last three months bank statements from the applicant. If the applicant is a Limited Company then we also require sight of the last three months personal bank statements from the directors in the company. Open Banking provides a quicker and more secure way of viewing an applicant’s bank statements.
The Process
- BFS have chosen Perfect Data Solutions Ltd (PDS) as our Open Banking partner. PDS is an Account Service Provider (AISP), which is part of the government-backed Open Banking Scheme. PDS are authorised and regulated by the Financial Conduct Authority. Lending Metrics is the trading name of PDS.
- BFS will send you a link, via email, to our Open Banking site. The site will be titled ‘oohMoolah’ which is the software brand provided by Lending Metrics.
- You will be asked to provide your name, date of birth, postcode and your email address.
- You will then be asked to choose your bank/building society and account type (i.e. personal or business account).
- You are then redirected to your bank / building society log in screen and will be requested to provide your username and password/authentication security codes etc.
- Once logged in you are advised what bank accounts you can share information on.
- You are finally asked to authorise sharing your information with PDS.
- BFS are then sent a copy of your bank statements for the preceding 90 days.
FAQs
Open Banking uses rigorously tested software and security systems. You will never be asked to give access to your bank login details or passwords to anyone other than your own bank or building society
No, you need to provide explicit consent to your bank
This only applies to your bank accounts that you can access online or by mobile
Speed – it reduces the time and inconvenience of you having to send paper bank statements into the office or downloading and sending bank statements electronically
No, you need to provide express permission for each individual bank account
No, you authorise access for the next 90 days. Within this period you can cancel this access at any time by notifying your bank
No – Open Banking with BFS is free
