Central Liverpool Credit Union uses Open banking to speed up your loan application.
Nearly 4 million people use open banking in the UK.
What is open banking?
Open banking is a new service. Open Banking provides financial service providers, like the Credit Union, access to your financial data from banks and building societies.
Your data is safe
Open banking has been designed with security in mind:
- Bank-level security. Open Banking uses rigorously tested software and security systems. You’ll never be asked to give access to your bank login details to anyone other than your own bank or building society.
- It’s regulated. Only apps and websites regulated by the Financial Conduct Authority can use Open Banking.
- You’re in charge. You choose when, and for how long, to give access to your data.
- Extra protection. Your bank or building society will pay your money back if fraudulent payments are made. Additionally, you’re protected by data protection laws and the Financial Ombudsman Service.
Benefits of open banking
The Credit Union must undertake a full affordability assessment when considering a loan application. Traditionally we’ve done this by looking at your bank statements. However, Open Banking, enables members to share their bank statement with us online. Because of this, there’s no need to send in paper statements. As a result, your application is processed more quickly.
What data is shared?
Once you’ve consented to share your data, the following information is shared with the Credit Union:
- Account name.
- Account number and sort code.
- Full name of all account holders.
- Card number for credit cards only.
- Account balance and currency.
- Direct Debits.
- Standing Orders.
- Incoming and outgoing transactions, including salary, subscriptions, card purchases and transfers.
How long is this information shared for?
Open Banking connections are open for 90 days. However, you can remove this permission whenever you want. Importantly, after 90 days the Credit Union can no longer see any of your transaction information.
What does the Credit Union see?
Open Banking is like seeing your bank statement (as we have done for many years). However, it is much quicker because all of your expenditure is shown together. For example, housekeeping spend is shown together, along with rent, travel and so on.
Nest time you apply for a loan, use Open banking to speed up your loan application.
See for yourself
In the new year we’ll be launching a mobile app, giving you access to your Open Banking data. Because transactions are categorised it is really easy to see where your money is going. And where you can make savings. The app will be free of charge.