Open Banking
Little Birdie talks Open Banking

What is Open Banking?

Open Banking is a safe and secure way for you to share information from your bank or credit cards with other financially regulated providers so that they can help you manage your finances better.
 

Open Banking uses security and encryption so you can safely give your permission to these regulated companies to see limited information from your bank account or credit cards. They can put this information in one easy-to-read place to make it easier to manage your money.

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• It's just as safe as online banking

• You control who can see your bank information

• You decide what information they see

• You can remove access at any time

 

Open banking is becoming increasingly popular due to its potential to increase competition and innovation in the financial industry.

 

By allowing third-party providers to access customer data, new financial products and services can be developed that better meet the needs of customers. Additionally, open banking can help to improve financial inclusion by providing access to financial services for those who may have previously been excluded from traditional banking systems.

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Why should I share my information?

 

Sharing your information via open banking has many potential benefits.

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By allowing third-party providers to access your bank account information, you can receive more personalised and customised financial services.

 

This can help you save money, manage your finances better, and get access to financial services that might not have been possible before. For example, you might be able to get better interest rates on loans or credit cards, or have access to customised investment advice.

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Moreover, sharing your information can also help you keep track of your spending habits and identify areas where you can cut back on expenses.

 

This can be especially helpful for those who struggle with budgeting or have a hard time keeping track of their finances. Additionally, open banking can also lead to increased competition among financial service providers, which can ultimately result in better products and services for consumers.

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What information will Open Banking companies be able to see?

 

Open Banking companies will only be able to see the information that you have agreed to share with them. This information typically includes your account balance, transactions, and other relevant details about your account.

 

The information is accessed using secure APIs (Application Programming Interfaces) that are designed to protect your privacy and security.

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It is important to note that Open Banking companies will not have access to your login credentials or be able to make any changes to your account. They are only able to view the information that you have explicitly authorized them to access.

 

Additionally, Open Banking companies are required to adhere to strict data protection regulations, ensuring that your personal information is kept safe and secure at all times.

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How can Open Banking be used?

 

Open banking can be used in many ways, including budgeting and saving tools, loan applications, investment advice, and insurance products.

 

For example, a budgeting app can access your bank account information to give you a personalised budget and spending plan, while an investment app can provide customised investment advice based on your personal financial information.

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Or a subscription management app like Little Birdie can help save you £100s each year by helping you cancel unwanted subscriptions. 

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Another way that open banking can be used is to streamline the loan application process. With open banking, lenders can access a borrower's financial information directly from their bank, making the application process faster and more efficient. This can also lead to more accurate loan decisions, as lenders have access to a borrower's complete financial picture.

 

Open banking can also be used to create new insurance products that are tailored to an individual's specific needs. By accessing a customer's financial information, insurance companies can offer personalized policies that are based on their actual risk profile.

 

For example, a car insurance company could offer a policy that is based on a customer's actual driving habits, rather than just their age and location.

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How does Open Banking work?

 

Open banking works by using secure APIs to access a customer's bank account information. These APIs are created by banks and financial institutions to share customer data with third-party providers.

 

When a customer gives permission to a third-party provider to access their data, the provider uses the APIs to access the information.

 

The information is then used to provide personalized financial services, such as budgeting tools or investment advice.

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How does Little Birdie use Open Banking?

With your permission, Little Birdie scours your banking and card data to find all of your subscriptions. She then pops them into an easy-to-read dashboard so you can see at a glance how many you’ve got and how much they cost.
 

Once Little Birdie has found your subscriptions she then compares them against all the other deals on the market. If she thinks there’s a better deal out there for you – she’ll chirp a notification.
 

Little Birdie is still quite new to hunting for deals, so every now and then, she might throw up something that isn’t perfect for you. Our aim is to train Little Birdie over the next weeks and months to be the best deal hunter in town, so you only get relevant offers that make your life better.
 

Is Open Banking safe?

Yes!

 

Open Banking companies must be regulated by the Financial Conduct Authority, which means they must meet strict standards when it comes to protecting your data and access to your bank.
 

You will never be asked to share the login details for your bank account – the only way for Little Birdie to access your banking information is if you give permission directly to your bank.
 

We will only ask you to give Little Birdie permission to see your subscriptions. She is not authorised to move any money or make any payments on your behalf. All Little Birdie can do is see what you are spending to help you save money and keep on top of your finances.

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How does Little Birdie use Open Banking?

With your permission, Little Birdie scours your banking and card data to find all of your subscriptions. She then pops them into an easy-to-read dashboard so you can see at a glance how many you’ve got and how much they cost.
 

Once Little Birdie has found your subscriptions she then compares them against all the other deals on the market. If she thinks there’s a better deal out there for you – she’ll chirp a notification.
 

Little Birdie is still quite new to hunting for deals, so every now and then, she might throw up something that isn’t perfect for you. Our aim is to train Little Birdie over the next weeks and months to be the best deal hunter in town, so you only get relevant offers that make your life better.

 

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