Q&A

What’s happening?

From today, Open Banking will force the UK’s nine largest current account providers to share their customers’ data. Reforms on data-sharing will also allow customers to share their online banking passwords with other firms.

Why has it been brought in?

The aim is to make banks release data in a secure, standardised form so that it can be shared more easily between companies online – promoting greater competition in the financial industry, and getting customers better deals.

Who will be affected?

Only customers with online banking accounts. They will have to give their permission every time a company wants to access their data.

Will it work?

In theory, customers could find a cheaper current account, get lower price energy, or better broadband.

What is the risk?

Critics have dubbed this a fraudster’s charter. Up until now customers were told to never give passwords away. Now they could be tricked in to handing them over to rogue firms.

When is this happening?

The reforms come into effect today but most Open Banking services may not start until March. For now, only current account information can be given to a third party. Over the next 18 months, credit cards, prepaid cards and ewallets will be shared.