Open banking

I did give a link to Martin's article about Open Banking in my post near the start of this thread.

My issue is simple. I enjoy the option of banking online, but giving any authorisation not essential to manage my account creates a new risk for a security breach in the future.

I think he's on tv shortly, perhaps he'll mention it in this evening's programme; I don't normally watch it but may do so just to find out more.

I'd never heard of this until today. I must say, I'm another one who finds it all a bit too much (I refused to have a contactless card) but, I did hear Martin Lewis, the money man, talking about it earlier. He have the impression that it wasn't such a bad thing and in 5 years time it will be the norm

Just read this thread whilst catching up. Not a snowball in Hell's chance would I agree to that. Just why would you?

Sorting out savings account/ISA today with my 'Financial Advisor; he said he wouldn't touch Open Banking with a bargepole. Quite shocked by how few staff there are in the Branch now; the premises are far too large.

I wouldn't be happy doing this. What is wrong with the way we do things currently? Big Brother is becoming ever closer!

There was a recent thread asking how much people spent on their weekly shop. If you want to trim your expenses, one of these apps could help.

So it might, but I really don't see why it has to be linked to a system that makes your bank data vulnerable.

Before the days of apps we used to call this 'budgeting'; you sat down and worked out your incomings and outgoings and spent accordingly. And, if you were so inclined or really struggling you looked for every possible way of saving money.

Letting an 'app' with access to all your personal data do this for you sounds like infantilising people, letting them abdicate responsibility for their lives.

I think it's a dreadful idea...

Well, I won't be doing this either but I can see why it could be attractive to some. For example, if you are struggling to stay within budget every month, an app that analyses your spending and shops around to present you with better deals such as lower broadband or energy costs, even deals at the supermarkets could make a difference to a struggling family. It may make the difference between staying out of debt or applying to a payday loan lender.

There was a recent thread asking how much people spent on their weekly shop. If you want to trim your expenses, one of these apps could help.

Yes, there are risks but we've all been allowing direct debits for years. If you've never used online banking, you may not realise that you need more than a password and PIN to set up payment from your account. Certainly, this information should only reside in a protected system, you should never give it to a real person.

It may be a silly idea, only time will tell but there may be benefits.

This isn't exactly the same thing, but in France it's almost impossible to have a "private" bank account.
First, you have to include a list of all worldwide bank accounts with your tax return. A big fine if not done, or if you're found to be hiding one.
Next - banks have to send details of interest on savings accounts to the revenue people. Same in the UK? Which links in to possible undeclared taxable capital.
Next, if a person gets into debt with one of the utilities companies etc they can get a court order to go into your account and take out the money owed.
If you go into overdraft here without permission they close your account, and you're unlikely to get one elsewhere.

As soon as I read this it sounded like a scam to me, or a potential for scammers to cheat us yet another way. It is one thing for you to tell a company what you spend on insurance, say, so that they can give you a favourable quote, it is quite another for any Tom Dick or Harry to be able to log into your account.

Even saying that only companies registered with the FCA are eligible to approach you doesn't stop any OTHER companies, or individuals pretending to represent an eligible company, from contacting you and persuading you to give them your log-in details. Giving it a seal of official approval will make many customers think it is all above board.

It will be rather like contacting you to say that they are from Windows and have discovered that your computer has a fault. No need to worry, just let them have access and they can fix it . . . .

The other companies don't get access to your data by using your username and password. Anyone calling or asking for your username and password because of 'open banking' is trying to get access to your account, which is different from access to your data. Don't pass this on to anyone, especially if they say 'open banking'. Report it as fraud.

I agree this is a naive piece of legislation from the EU. I think it's going to benefit very few people and leave everyone else open to exploitation.

Giving card details over the phone is one thing, but allowing a company full access to your account, with your username and password is something else entirely.
That's not to say that I've ever been entirely happy about giving my card details to a stranger, and wherever possible I pay for things online by PayPal.

This can only be done with your express permission.

I have always felt uncomfortable with giving bank card details over the phone Grannynot.

What a stupid idea.

However I have just changed a booking and it occurred to me that I am giving my card details to a complete stranger over the phone... which practice is not unusual (giving card details over the phone to commercial organisations).

I find this truly shocking and very scary. There is no way on earth that I would authorise any companies, not even those that I've been dealing with for years. To be honest I'm finding it very difficult to believe that anyone would dream up such a concept.

It’s astonishing isn’t it when we look at the past ( and probably current) behaviour of banks - mis-selling, overcharging, poor customer service, IT problems , that anyone would think that this idea would do anything other than end in tears. A bit OT but I’m still waiting for the banks to address the issue of money being sent to the wrong account by mis-typing one of the numbers, They can5 solve this problem but they can implement open banking

Scarey, no thank you.

I think it's a terrible idea.

Looks like lots of opportunity for trickery.

Will we have to watch out for "Untick this box if you don't want to share data."?

No, I'm not and I won't be authorising any companies.

MSE Open Banking