Finance glossary
Open Banking
Also known as: Open banking
In simple terms
Open Banking lets you securely share your bank data with, or make payments through, approved apps and companies — but only when you give your explicit permission each time.
On this page
What does Open Banking mean?
Open Banking is a system that lets you give regulated third-party providers secure access to your bank account information, or permission to make payments on your behalf, using your bank’s technology rather than your login details.
It powers things like budgeting apps that pull together your accounts, quicker lending decisions, and “pay by bank” checkout options that move money straight from your account.
How Open Banking works
Providers connect to your bank through secure interfaces (APIs). You are redirected to your own bank to approve the connection, so you never hand your password to the third party. Access is granted only for what you agree to, and you can withdraw it at any time.
Only firms authorised by the FCA can offer Open Banking services. Consent for ongoing access is time-limited and must be renewed, so a provider cannot keep tapping your data indefinitely without you re-agreeing.
How could this affect me?
Open Banking can make managing money easier — seeing all your accounts in one place, getting tailored deals, or paying without card fees. You stay in control of who sees what, and for how long.
Before connecting, check the provider is FCA-authorised and understand exactly what you are agreeing to share. Review and revoke old connections you no longer use.
Things to watch out for
- Only share data with providers authorised by the FCA — check the Financial Services Register.
- You never need to give your online banking password to a third party; approval happens on your bank’s own site.
- Review the permissions you have granted and revoke any you no longer use.
- Consent for ongoing access is time-limited and will ask you to renew it.
Know your rights
- Open Banking providers must be authorised and regulated by the FCA to access your data or initiate payments.
- You can withdraw your consent for a provider to access your account at any time, and your bank must act on that.
- If an unauthorised payment is made from your account, your bank must normally refund you promptly.
General information, not personal advice
Consumer Credit is an independent information service. We do not provide regulated financial advice or sell financial products. For advice on your own situation, speak to an appropriately authorised firm or a free service such as MoneyHelper. About Consumer Credit.
Sources
We checked this page against these official and authoritative sources.
- FCA, Open Banking (opens in a new tab). Accessed 22 Aug 2026.
- MoneyHelper, What is Open Banking and is it safe? (opens in a new tab). Accessed 22 Aug 2026.