Newspaper article Evening Chronicle (Newcastle, England)

Opening the Door to a Wealth of Information; Open Banking Is Here - but How Will the 'Quiet Revolution' Affect How You Handle Your Money? VICKY SHAW Finds Out

Newspaper article Evening Chronicle (Newcastle, England)

Opening the Door to a Wealth of Information; Open Banking Is Here - but How Will the 'Quiet Revolution' Affect How You Handle Your Money? VICKY SHAW Finds Out

Article excerpt

Byline: VICKY SHAW

ABANKING revolution started in January - but you may well not have noticed it yet. Open banking has been described as a quiet revolution, as its full impact will only be felt over time - but the implications could be huge.

It could eventually transform our money habits and how we budget, as well as how we search for products like current accounts, energy and broadband, for example.

So what exactly is open banking - and how could it help you? Here's a handy guide...

WHAT IS OPEN BANKING? THE initiative launched on January 13, with major banks coming on board.

In a nutshell, open banking will allow you to share information about your banking history with firms other than your bank or building society.

This information will be shared securely, so you won't be passing on your banking passwords.

Sarah Coles, a personal finance analyst at Hargreaves Lansdown, says: "The change is likely to spark a boom in apps that will help people manage their money."

WHY MIGHT YOU WANT TO DO THIS? THE aim is that it puts more power in the hands of the consumer to find the best deal for them, based on their actual spending habits.

This could be a current account, or eventually it could be something else.

Imran Gulamhuseinwala, Open Banking trustee, says: "New ways of managing money, of making life-changing financial decisions, of paying for things, will appear."

WHAT'S THE BACKGROUND? A PREVIOUS probe by the watchdog Competition and Markets Authority (CMA), found many people could be much better off by switching banks to a deal which better suits their needs - yet many stick with their bank year in, year out.

Open banking is part of wider moves to boost competition and make financial firms work harder to keep existing customers and attract new ones.

HOW DOES OPEN BANKING WORK? IT'S about making the most of advances in technology to share information securely, without you having to reveal passwords.

It works in a similar way to the technology that allows people to sign into other online accounts using Facebook.

I'M NOT SURE WHETHER I WANT TO TAKE PART IN OPEN BANKING. …

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