Open Banking is a phased implementation of a new law (PSD2) that requires UK banks to provide technology so you can share your financial information with regulated businesses. This is via an ‘Open API’ - a channel that directly connects to your bank account using a third party service like Money Dashboard.
PSD2 is a new law that makes it easier for consumers to share their financial information. It means you will have greater control over your financial data and who it can be shared with. This will make it much easier for you to shop around & switch current account providers, or other financial products
As terms ‘Open Banking’ and ‘PSD2’ are sometimes used interchangeably, and this can confuse consumers. It is probably best to describe ‘Open Banking’ as a tool that allows consumers to enjoy the benefits of PSD2, and ‘PSD2’ as a law that enshrines your right and protections to share your financial information.
So just because a Bank or App doesn’t ‘do’ Open Banking, does not mean it isn’t following PSD2. A number of banks will provide their own non-Open Banking API solutions; e.g. Starling, and Monzo, and some apps like Money Dashboard will support these non-Open Banking APIs, as well as Open Banking and Credential Sharing. Done correctly, all of these methods support PSD2.
Pioneering financial data access since 2012
Money Dashboard has been actively involved in the development and implementation of both PSD2 and Open Banking. In retail banking, we want to see increases in competition, innovation and enhancements in protections that benefit consumers first. This includes making sure that the industry delivers secure and stable Open Banking solutions and users get access to their financial data. We are proud to say that Money Dashboard was the first PFM pioneer in the UK and has been in the industry for over 7 years. We currently serve over 150, 000 users and support over 60 different bank providers. If you have any further queries about our services and ongoing innovative projects, please drop us an email email@example.com or get in touch with us via Twitter @Moneydashboard.
Background to Open Banking:
Timelines of the PSD2: