Open Banking is a system that allows you to securely share your bank account data with authorised third-party apps and services using regulated APIs. It is governed by the FCA and all participating banks are regulated by the CMA9 mandate. In 2026, Open Banking powers budgeting apps, credit eligibility checks, faster payments and accounting software -- all without giving third parties your banking password. (Source: Open Banking Limited, 2026)
What Open Banking Can and Cannot Do
How to Use Open Banking Safely
Before connecting any app to your bank account via Open Banking:
- Check the app is FCA-authorised as an Account Information Service Provider (AISP) or Payment Initiation Service Provider (PISP) at register.fca.org.uk
- Read what data permissions you are granting -- consent is specific and scoped
- Check the consent duration -- most Open Banking connections require renewal every 90 days
- Revoke access to apps you no longer use via your bank's app or the Open Banking provider dashboard
Tip You can revoke all Open Banking connections to your account at any time through your bank's app or internet banking under settings or security. Revocation takes effect immediately. Check your active connections every 6 months and remove any you no longer use. |
Practical Open Banking Use Cases in 2026
Your Rights Under Open Banking
Under the Payment Services Regulations 2017 (PSR) and UK GDPR, you have the right to:
- Give and withdraw consent at any time
- Know exactly what data is being accessed
- Have your data deleted on request by the third party
- Complain to the FCA if a TPP misuses your data
- Compensation if a TPP causes you financial loss through negligence
(Source: Payment Services Regulations 2017; UK GDPR Article 17)
Important Never share your actual online banking password with any third-party app -- even one claiming to use Open Banking. Legitimate Open Banking apps connect via regulated APIs using your bank's own secure consent screen. If any app asks for your banking password directly, it is not using Open Banking and should not be trusted. |
Disclaimer: This article is for information only and does not constitute financial or legal advice. Consult a qualified adviser for guidance tailored to your situation. Always check the FCA register at register.fca.org.uk before dealing with any financial firm. |
Frequently Asked Questions
Can Open Banking be used to steal my money?
Account Information Services (read-only access) cannot initiate transactions -- they can only read data you have consented to share. Payment Initiation Services can initiate payments but require specific consent for each payment or standing permission. Liability for unauthorised transactions initiated via Open Banking rests with the TPP if they acted without proper authorisation. (Source: PSR 2017)
Does Open Banking affect my credit score?
Granting Open Banking access to a read-only budgeting app does not affect your credit score. If a lender uses Open Banking to assess your income for a credit application, this may be part of a hard search application process -- but the Open Banking data access itself does not leave a mark. (Source: FCA, Open Banking and credit)
Sources
- Open Banking Limited: openbanking.org.uk
- FCA Open Banking: fca.org.uk
- Payment Services Regulations 2017: legislation.gov.uk
