What is Open Banking?
Open Banking is an initiative by regulators and the banking industry designed to increase competition and promote innovation. Open Banking enables you to securely share your current account data with authorised third-party providers, often referred to as TPPs. Those providers can then offer you innovative products and services that make it easier for you to manage your financial life from one place, as well as offer you services which may reduce the cost of some of the financial products you use.
Some of the new things you’ll be able to do include:
- seeing your transactions and balances from accounts you hold with multiple banks through a single online portal, provided either by one of your banks or a TPP
- able to make payments and transfers from your bank accounts through a single online portal, provided either by one of your banks or a TPP
- getting product recommendations based on the transaction analysis carried out by the TPPs
- paying for goods and services directly from your bank accounts without a credit or debit card.
How does it all work?
Open Banking relies on establishing a standard technology for data sharing between banks – an Application Programming Interface, or API. An API is a piece of software that allows different programmes to communicate with each other. Open Banking requires banks to make standardised APIs available that will allow the sharing of account information and the transmission of payment instructions (if customers have given permission to do so).
Your financial information belongs to you, and Open Banking is designed to put you in control of it.
It will always be up to you if you want to make a payment or share data with an Open Banking service. That means you don’t need to opt in or out. You choose which services you want to share data with, and nothing is shared with services you haven’t signed up for.
Whenever you share data or make a payment from your Kleinwort Hambros current account, you’ll be transferred to our secure website and we’ll ask for your eBanking logon details. This is so we can make sure it’s really you.
Once you’ve provided your consent to the TPP via our secure website, your account data and payment details are transferred between us and the TPP via a protected connection. If you wish to revoke an on-going consent granted to a TPP to access your account, you should instruct that TPP directly to cancel your consent.
Keeping it safe
Open Banking should give customers more control over their data. But it raises critical questions about privacy and security. The regulations mean that any company with access to your data will now be responsible for ensuring it is processed, stored and transferred appropriately and securely.
You can help safeguard your data by making sure you only use firms regulated by the Financial Conduct Authority. It is also worth noting that your data can’t be accessed by any third-party providers unless you give them express permission to do so.
It’s your choice
Remember, sharing data is completely your choice. If you decide to stop sharing data, we won’t send any more data to the authorized third party provider. However, the data we have shared while you did give your permission may still be stored by the third party – you should contact them to understand what they will use it for.
Third Party Provider (TPP)
Kleinwort Hambros has a testing facility based on Open Banking standards available for FCA authorised Third Party Providers.
Please contact us: firstname.lastname@example.org
You can review our test facility onboarding document here.
Open Banking: https://www.openbanking.org.uk/
Money Advice Service: https://www.moneyadviceservice.org.uk/en/articles/open-banking-and-sharing-your-online-banking-information
Open Banking FAQ
Do I need to share my information/data/details?
No, the use of Open Banking is entirely down to you. You will be asked to provide explicit consent to a company accessing your data, and confirm this via our secure website. These companies will only be able to access account information once you have provided your consent to them. If you decide not to take part in Open Banking and take no action, nothing will change.
When we receive a request from a third party, we will check our records to ensure we have a valid consent from you before sending data to them.
If you do opt to use the services of a Third Party Provider, it’s very important for you to read the Terms and Conditions of the service to understand exactly what information they’ll be accessing and how they’ll use that data.
Is sharing my information using Open Banking safe?
Yes - Everyone involved in Open Banking must comply with Data Protection Laws and will need to be approved by the Financial Conduct Authority.
Third parties are not permitted to take any action on any account without the explicit consent of the account holder. This is a binding legal requirement placed on authorised third parties. Your information is protected and encrypted to the same level of security as eBanking.
Is sharing my information using Open Banking secure?
Yes, We have used Open Banking standards and created a secure platform that give you the option to share your Account information securely. Your data is encrypted and its usage is tracked; only companies regulated by the Financial Conduct Authority or other competent authorities can use it if you have provided your consent to them.
When will I be able share my Kleinwort Hambros account information?
The ability to share your current account information with authorised Third Party Providers will be available from June 2019.
Who are the Third Party Providers?
A Third Party Provider could be any company who wants to offer you a service, and therefore needs your transaction history to do so. Third Party Providers are approved by the Financial Conduct Authority (FCA) before they can take part in Open Banking. All approved Third Parties will appear on the FCA Directory. Third Party providers could include big high street banks, newer challenger banks, or other companies that aren't banks but provide similar services e.g. credit reference agencies, and comparison websites.
How do I give my consent to third parties in Open Banking?
Once you’ve decided to use a third party, you'll be asked to give explicit consent to share your information with them. You'll give your consent on the third party's website; once given you will be redirected to our secure authorisation page, where you’ll enter your eBanking login details. Only once authorised by you, and the we have checked the third party is authorised by the FCA, will we share your data securely. We'll store your consent and check it every time the third party requests access to your account.
How do I sign up for Open Banking?
To use Open Banking you must be registered with eBanking. To sign up for Open Banking you’ll need to give initial consent via a third parties site. You’ll need to provide separate consents for every third party you use. These consents will expire after 90 days so you’ll need to renew these, if you wish consents to continue beyond this time.
I don’t want to use Open Banking
That’s fine; you do not need to do anything. Without your explicit consent, third parties will not be able to access any of your account information.
How do I stop sharing my information in Open Banking?
To stop sharing your information, you will be required to withdraw your consent for each third party you want to stop sharing your information with. If you wish to revoke an on-going consent granted to a TPP to access your account, you should instruct that TPP directly to cancel your consent.
How do I access my consent preferences in eBanking?
We are working on this.
How do I access my consent preferences in my mobile app?
We are working on this.
Who do I contact if I suspect Fraud?
Please contact us immediately, either via the helpdesk or your Private Banker if you are worried about fraudulent access or payments from your account.
Does Kleinwort Hambros offer an online service so I can view my account transactions from other banks?
We are currently not providing this functionality.
I’m an authorised Third Party Provider, how do I integrate with Kleinwort Hambros?
You can contact us on email@example.com You can review our onboarding information via the Open Banking Directory.
I’m an authorised Third Party Provider, can I have more information on your testing facility?
You can contact us on firstname.lastname@example.org Please review our test facility onboarding document here
What is the difference between Payment Service Directive (PSD2) and Open Banking?
In January 2018, the EU’s second Payment Services Directive (PSD2) came into force. PSD2 is the second iteration of regulation governing banking services, and requires banks across the EU to provide open APIs to allow third party organisations to access their customer’s banking details. PSD2 covers all banks, but also other Account Servicing Payment Service Providers (ASPSPs) including building societies and credit unions. The Open Banking initiative is the UK solution for meeting this requirement, and was initially mandated for the ‘big 9’ banks, however is expected to widely adopted by the entire UK banking sector.
Will I see any other changes?
As part of the EU’s second Payment Services Directive (PSD2), you will also see changes in the way you access eBanking, with the introduction of biometric login and payment authorisation. You will be informed of these change later this year.