How do I use open banking?

Many budgeting apps, comparison sites, and lenders use open banking. When you sign up for a service that uses it, you'll be redirected to your bank to authorise access. You log in with your normal bank credentials on your bank's secure site.

Can open banking take money from my account?

Only if you specifically authorise a payment. Standard account information services can only view your data. Payment initiation services (PIPs) can make payments, but only with your explicit permission each time — like paying a bill directly from your account.

Open Banking Explained — UK Guide to Secure Data Sharing | PocketWise

Q: What is open banking?

Open banking lets you securely share your bank data with authorised apps and services. Instead of logging into multiple bank apps, you can see all your accounts in one place, or let services analyse your spending to help with budgeting or getting better deals.

Q: Is open banking safe?

Yes — open banking is regulated by the FCA and uses secure connections. Apps can only see your data, not move your money (unless you specifically authorise payments). Only FCA-authorised providers can access your data, and you can revoke access anytime.

Open banking has changed how financial services work in the UK. Here’s what it means for you and how you can benefit.

What Is Open Banking?

Simple Definition

Feature	Details
What it does	Lets you share bank data with authorised apps
How it works	Secure API connections between banks and apps
Regulated by	FCA (Financial Conduct Authority)
Launched	UK, January 2018

How It Works

Step	What Happens
1	You decide to use a service that uses open banking
2	You’re redirected to your bank’s secure login
3	You authorise the connection
4	The app can access specified data (read-only usually)
5	You can revoke access anytime

Two Types of Open Banking Services

Account Information Services (AIS)

Feature	Details
What they do	View your account data
Can they take money?	No — read-only
Common uses	Budgeting apps, see all accounts
Examples	Emma, Money Dashboard, Snoop

Payment Initiation Services (PIS)

Feature	Details
What they do	Make payments on your behalf
Your permission	Each payment requires authorisation
Common uses	Paying bills, faster checkout
Examples	Trustly, GoCardless, HMRC payments

Banks That Support Open Banking

All UK Major Banks Participate

Bank	Open Banking Status
Barclays	Full support
HSBC	Full support
Lloyds	Full support
NatWest	Full support
Santander	Full support
Monzo	Full support
Starling	Full support
Nationwide	Full support
TSB	Full support
Metro Bank	Full support

All major UK banks and building societies must provide open banking access.

Popular Apps Using Open Banking

Budgeting and Money Management

App	What It Does
Emma	Tracks spending across accounts
Money Dashboard	Budget tracking
Snoop	Bill switching alerts
Plum	AI savings and budgeting
Chip	Automatic savings
Yolt	All accounts in one place

Comparison Services

Service	How It Uses Open Banking
Credit Karma	Accurate credit offers
Experian	Income verification
Comparison sites	Accurate quotes

Lenders

Use Case	How Open Banking Helps
Mortgage applications	Verify income and spending
Loan applications	Faster affordability checks
Rent checks	Prove income to landlords

Payments

Service	Use
HMRC	Tax payments
GoCardless	Direct payments
Various bills	Direct account payment

Benefits of Open Banking

For You as a Consumer

Benefit	How It Helps
See all accounts in one app	Easier money management
Better budgeting	Automatic categorisation
Faster loan decisions	Income verification
Better deals	Accurate comparison
Bill switching	Find cheaper providers
No more bank logins	One app, many accounts

Practical Examples

Scenario	Without Open Banking	With Open Banking
Checking all accounts	Log into each bank	One app shows all
Getting a loan quote	Send bank statements	Instant verification
Finding better deals	Estimate your usage	Exact data analysed
Mortgage application	Provide 3 months statements	Instant income check

Is Open Banking Safe?

Security Features

Protection	Details
FCA regulation	Only authorised providers
Encrypted connections	Secure data transfer
No password sharing	You log in via your bank
Read-only access	Can’t take money (unless PIS)
Revocable	Withdraw access anytime

What Can’t Happen

Risk	Why It’s Protected
App stealing money	Read-only access default
Password theft	Your bank login, not app
Unauthorised access	Your consent required
Data sold	Regulated use only

Legitimate Provider Checks

Sign	Legitimate Provider
FCA registration	Check FCA register
Redirect to bank	Real providers do this
Clear permissions	Explains what data accessed
Revoke option	Can withdraw access

How to Use Open Banking

Connecting Your Accounts

Step	What to Do
1	Download an app that uses open banking
2	Select “Connect bank account” or similar
3	Choose your bank from the list
4	You’re redirected to your bank’s site
5	Log in with your normal bank credentials
6	Approve the connection
7	Return to the app — accounts linked

Managing Connections

Action	How
See connected apps	In your bank’s app or online banking
Remove access	Via bank app or the connected app
Check what’s shared	Permissions shown when connecting

Revoking Access

Most banks let you manage open banking permissions:

Log into your bank app
Find “Connected apps” or “Third party access”
Select the app to manage
Click “Remove access” or similar

Common Concerns

“Can They Steal My Money?”

Answer	Explanation
No (with AIS)	Account Information Services = read-only
Only with permission (PIS)	Payments need your explicit approval

“Will They See My PIN/Password?”

Answer	Explanation
No	You log in on your bank’s site
Apps	Never see your credentials
Banks only	Handle authentication

“Can They Sell My Data?”

Regulation	Details
GDPR protected	Your data, your rights
FCA rules	Strict use limitations
Terms of service	Must explain data use
Opt out	Can remove access

“What If the App Is Hacked?”

Protection	Details
No stored passwords	Nothing to steal
Tokens revocable	Access can be cut
Read-only data	Can’t move money
Bank remains secure	Your actual account unaffected

Use Cases

Building a Budget

Step	Using Open Banking
Connect accounts	All banks in one app
See all spending	Automatic categorisation
Track subscriptions	Identify recurring payments
Set budgets	Based on real data

Getting Better Rates

Service	How It Helps
Energy comparison	Uses actual usage data
Insurance quotes	Accurate mileage, spending
Loan comparison	Real affordability data

Mortgage Applications

Traditional	With Open Banking
3+ months bank statements	Instant verification
Manual income proof	Automatic check
Weeks of processing	Days of processing

Tips for Using Open Banking

Best Practices

Tip	Why
Only use FCA-authorised apps	Protection guarantee
Check permissions	Know what you’re sharing
Review connected apps	Regularly audit
Remove unused connections	Limit exposure

Red Flags

Warning Sign	Action
App asking for PIN	Never share this
No FCA registration	Don’t use
No redirect to bank	Suspicious
Asking to type bank password in app	Scam

Future of Open Banking

Open Finance

Development	What It Means
Beyond bank accounts	Sharing pension, ISA, mortgage data
More services	Wider range of products
Better comparisons	Across all finance products
Smart Money	Help finding best products

Smart Data Scheme

Initiative	Purpose
Government backed	Extend to other sectors
Energy data	Switch suppliers easily
Telecoms data	Better phone/broadband deals

Summary

Aspect	Key Point
What it is	Secure bank data sharing
Is it safe?	Yes — FCA regulated, read-only
Benefits	Better budgeting, easier apps
How to use	Connect through authorised apps
Control	You decide who sees what
Can revoke	Remove access anytime