Money Matters

Margaret Dibben

You may well have missed the ‘open banking’ revolution that started in January for online current accounts. Do not worry – you have plenty of time to catch up. With open banking, banks must now give third-party companies access to your current account information but – and this is key – only if you have given your express permission to each company that you want to have access. You can withdraw permission at any time.

The aim is to give bank customers control over their confidential details, called data. Data is valuable because it shows how good, or bad, a customer you are. Nine of the largest current account providers – Allied Irish Bank, Bank of Ireland, Barclays, Danske Bank, HSBC, Lloyds Banking Group, Nationwide, RBS Group and Santander – now have a legal obligation to share their customers’ data. Other banks can do so voluntarily.

At the top level, traditional banks should become more competitive – you could choose to have a current account with one bank and just an overdraft with another. Then new banks will join in – look at the websites of Yolt, Monzo, Starling and Atom to get an idea of what is coming. You will be able to see all your bank accounts, savings accounts and credit cards across all banks on one website. Applying for loans and mortgages will be quicker.

Insurers, telephone and energy companies and credit providers will evaluate your bank statements before calculating how much, or little, to charge.

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