Is Open Banking Safe? - Your Questions Answered

September 20, 2022 • Chris Bardsley

In short, open banking is super safe.

We work with oohMoolah from Perfect Data Solutions to provide a safe open banking service for our customers. If you’re new to online or mobile banking, it’s normal to feel concerned about passing over your bank information. You can rest assured that Fair for You and our open banking partner are FCA registered. Which means we take care of your data and keep it secure.

Check out some of the questions that our customers ask us, hopefully they’ll give you all of the information you need - but if not, remember you can speak to our friendly team.

What is open banking?

Open banking is a way of sharing insight into your financial health, where we can look into your spending patterns to understand your loan affordability. It can be connected to different online accounts, including personal and business current accounts, flexible savings accounts, e-money accounts and credit cards.

Money Saving Expert explains, “UK-regulated banks have to let you share your financial data such as your spending habits, regular payments and companies you use (basically your bank, credit card or savings statements) with authorised providers offering budgeting apps, or other banks – as long as you give your permission.”

So this increased access gives consumers more control over their finances and allows them to compare products and services to find the best deals. Plus, open banking is great because it isn’t associated with your credit score, it’s used to purely understand your financial situation based on your bank accounts. So if you have used very little credit in the past, or maybe recently moved to the UK, open banking can provide the backup you need to prove you can afford a loan. Open banking technology is still in its early stages but has the potential to revolutionise the way we manage our money.

In order to offer open banking, organisations must be registered with the UK financial regulator, the Financial Conduct Authority (FCA). Fair for You and our open banking provider are both registered firms. So you’re in safe hands.

Is open banking safe?

YES. Any data you submit via the oohMoolah portal is encrypted, and the usage of your data by the provider is completely tracked. Money Saving Expert says, “all providers have to comply with data protection rules, including GDPR.”

When you share your financial information with third-party apps, you trust those companies to keep your data secure. Make sure you only share your information with companies that you trust and that have a good reputation for protecting their users' data.

When Perfect Data Solutions ask for your consent to use your bank accounts’ data, we can only view your data for the next 90 days. Fair for You only uses your data once within those 90 days as part of our loan application process.

What information will open banking companies be able to see?

You can choose which accounts companies have access to. Money Helper says, “Companies should only ask for permission to access the information they need to provide the service they’re offering.”

There are many different types of information you can share - including:

  • Account details, like the name on the account

  • Regular payment details, such as standing orders and direct debits

  • Transactions, including incoming and outgoing payments

  • Account features and benefits, like overdraft payments.

Open banking is a great way to keep track of your finances and ensure that only the people you want to have access to your information do. By sharing your data with third-party providers, you can control who can see it and how they can use it. You can also set up security features, such as two-factor authentication to further protect your information.

Be careful with open banking fraud

Online safety practices can keep you and your finances safe. Fraudulent businesses use all kinds of techniques to gain access to your bank account. Here are a couple of tips to keep you safe online:

  • Check for FCA authorisation

Look out for the FCA logo when you go through an open banking process. Or, you can check to see if a company’s authorised on the FCA Register or the Open Banking Directory. Providers should also tell you on their website or app if it's authorised.

The FCA stands for Financial Conduct Authority. They regulate all businesses within the financial services sector and work to ensure consumers get a fair deal. FCA authorised providers have had their business plan, budgets, resources, systems, controls, staff and risks independently reviewed. The FCA holds UK businesses to a high standard.

  • Where are you redirected?

You should always get redirected to your bank's website when you transfer data through open banking. Check the website is definitely your bank, and look out for anything out of place. For example, you should never be asked by anyone (other than your bank) for your online banking usernames and passwords.

Apply safely with Fair for You Open Banking

We work with oohMoolah by Perfect Data Solutions Ltd to offer our open banking service.

Let’s run through how oohMoolah works:

  • When you apply for your Fair for You loan, you’ll be directed to the oohMoolah portal

  • You select your bank or building society and account type

  • You will then be asked to provide consent, and oohMoolah will outline exactly what they will access from your accounts. This includes things like your bank account transactions, direct debits and your balance

  • oohMoolah will then direct you to your bank’s website, where you will enter your bank login details

  • Your bank will ask you to confirm the data to be shared with oohMoolah

  • You provide consent to your bank

  • Your bank shares the account information, as per your request

  • oohMoolah confirms if they have successfully received your account data

Flexible, affordable loans for whatever life throws at you

We're on your side - whether your old washer is driving you round the bend, the little ones’ bed is on its last legs or you need some extra food in over the school holidays.

Our loans are not charity - but we are wholly owned by one. Our profits don’t go into big corporations’ pockets - but they do go back into yours.

We should all have a choice when it comes to paying for our home essentials. Sadly, this is not the case for many people across the country, which is why we are on a mission to revolutionise credit and the way lending is done.

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Please note we’ve used links to external websites. Although we make every effort to ensure these links are accurate, up to date and relevant, Fair for You Enterprise CIC cannot take responsibility for pages maintained by external providers. Views expressed on external sites we link to are not necessarily those of Fair for You Enterprise CIC.

If you come across any external links that don’t work, we would be grateful if you could report them to the web content team.

The content of this blog does not constitute personal financial advice, and the views expressed in it are those of the contributor or author, which may not necessarily represent or reflect the views expressed by Fair for You Enterprise CIC.

This entry was posted in Finance, Budgeting Tips, Buying Guides and Blog
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