What is Open Banking?
Definition of Open Banking
Open Banking was set up by the Competition and Markets Authority (CMA) in order to create more competition in the financial marketplace.
The nine largest banks and building societies in Great Britain and Northern Ireland must allow regulated businesses to access their customers’ financial data - as long as customers have given their permission.
Customers are in control of which businesses have access to their data and for how long. Every provider that offers products and services using Open Banking must be regulated by the Financial Conduct Authority (FCA) or European equivalent.
Which banks are taking part?
The nine banks and building societies taking part in Open Banking - known as “the CMA9” - are:
- AIB Group UK (trading as First Trust Bank in Northern Ireland)
- Bank of Ireland (UK)
- Barclays Bank
- HSBC Group
- Lloyds Banking Group
- Nationwide Building Society
- Northern Bank Limited (trading as Danske Bank)
- The Royal Bank of Scotland Group
- Santander UK