Can I opt out of Open Banking?

Introduction

Open Banking has changed the financial services industry for the better since its introduction in 2018. While millions of customers and businesses in the UK are already benefiting from Open Banking, others are yet to realise how it can help. Below, we introduce some key factors relating to Open Banking that will help you decide whether or not to opt in.

Can I opt out of Open Banking?

To use Open Banking in the first instance, you need to explicitly opt-in and give a regulated app or website your permission. If you do, and then change your mind, you can still opt out. In other words, you’re always in control of how your data is shared.

The fundamental purpose of Open Banking in the UK is to put you in complete control of how your data is managed by financial institutions and regulated third parties. You can choose which apps and websites you wish to use, so you’re always in charge. You can also decide which information they can access and for how long.

If you’ve been using Open Banking for some time and don’t want to continue, you can opt out just as easily as you opted in. This is why Open Banking promises to transform the way in which financial institutions access and manage customer data, as it puts you in complete control of the process. We explain the process for opting out of open banking below.

How do I opt out of Open Banking?

Thankfully, opting out of open banking is straightforward. The best way to do it is to visit the website or regulated app that you have been using and withdraw your consent directly from them. This is easy enough if you only use a few Open Banking providers.

Alternatively, if you don’t want to contact companies directly, you can get in touch with your bank or building society. Inform them in writing that you no longer want specific regulated apps or websites to have access to your data, and they will opt you out of Open Banking following your request.

Remember, you only need to opt out of Open Banking if you opted in, in the first place. The very nature of Open Banking means that you must expressly give your permission to websites and regulated apps if you want them to access your data. Therefore, if you have never opted in to Open Banking, you don’t need to worry about opting out.

Why Open Banking?

There are so many reasons why using Open Banking can be beneficial for you. First and foremost, it puts you in total control of how your data is managed and which financial institutions can access it.

What’s more, all apps and websites that participate in Open Banking are regulated by the FCA, and websites are required to provide bank-level security before approval. Another great thing about Open Banking is that it enables you to access various financial products and services that are likely to help you based on your current financial circumstances.

For instance, applying for a personal loan with an Open Banking lender like Koyo Loans can be advantageous. Instead of relying exclusively on your credit score, Open Banking lenders consider various aspects of your finances thanks to the access provided by Open Banking technology. As a result, your loan application will be considered based on your current financial circumstances, as opposed to merely what a credit bureau says about you.

When did Open Banking start?

Open Banking was introduced on January 13th, 2018, in the UK. The growth of the ecosystem has been impressive in subsequent years, with more than 300 fintechs and innovative providers signing up to help customers.

What’s more, in excess of 2.5 million UK consumers and businesses utilise Open Banking enabled products and services to manage their finances, and more people sign up every month as they become aware of the benefits. Although it’s still a relatively new concept, the first few years of Open Banking have highlighted a range of benefits to both customers and businesses alike.

In 2020, an Open Banking app store was launched, which assists individuals and companies in finding the right Open Banking enabled financial products for them. There are currently more than 100 applications on the app store, and there’s no doubt that more regulated applications will be added in the near future.

How to use Open Banking?

The first step to using Open Banking is to opt-in with your bank or building society. You can do this from your online banking portal or by visiting your bank’s website. If you’re struggling to opt-in, consider contacting them directly.

Once you’ve opted in, you can use open banking for various payment accounts that you access online, whether via your smartphone, tablet, or computer. You can manage your current, business, and even credit card accounts with Open Banking, providing you with much more control over who accesses your data and for what purpose.

At present, only the nine largest banks and building societies are legally required to offer Open Banking, but more and more institutions are in the process of offering it to their clients, so bear this in mind as you look to opt in with your bank. For more information about how to use Open Banking and how it works, visit the official Open Banking website.

Conclusion

There’s no doubt that the introduction of Open Banking in the UK has had a transformative impact on how customer data is accessed and managed by regulated third parties. If you would like to benefit from Open Banking, make sure you opt-in with your bank or building society, so you can access better financial services and products.

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