What is Open Banking, and why does it matter?
Open Banking is designed to improve and enhance everyone’s banking experience. The core idea of Open Banking is that you can provide banks and other online providers with secure access to your account(s) so that you can manage your current accounts in a way that is better suited to your needs. If you have multiple current accounts you will be able to see those accounts all in one place.
An industry-wide evolution
In 2009, the first Payment Services Directive was mandated. When this directive was released, the market place experienced a rapid growth in electronic payments and new types of payment services started to emerge.
The second Payment Services Directive (PSD2), aims to drive increased competition, innovation and transparency across the payment markets in the European Union (EU) and the European Economic Area (EEA). PSD2 will also enhance the security and authentication of electronic payments.
The new legislation offers greater control over data, giving you the chance to share your online account information and make payments directly using Third Party Providers, known as TPPs. If you don’t want to use the TPP services, you don’t have to. You are always in control.
What does it mean to you?
Putting you first
Open Banking has, first and foremost, been developed with you, the consumer in mind. Increased competition leads to originality and creativity, and encourages organisations to launch services that set them apart from the competition. This means that you, the consumer benefits from personalised banking that matches your needs.
However, it is also worth noting that Open Banking is not obligatory. Those who want to take advantage can, but it will not be forced upon anyone. All banks however, will need to conform and consumers can only benefit if they have online banking.
Safe and secure
Open Banking would not be viable without robust safety measures having first been put in place. At Ulster Bank, the security of your data is of utmost importance to us, and since early 2017, we have been liaising with a number of other financial institutions and payment companies to develop Application Programming Interfaces, more commonly referred to as APIs.
These APIs enable information and data to be shared securely, and are tested thoroughly and regularly to ensure maximum levels of security.
- Get ready for the changes by making sure we have your correct contact details (mobile number, email, postal address).
- If you bank online, go to ulsterbank.ie/anytime to update your details. If not, speak to a member of staff in your local branch or give us a call.
- If you use Bankline, visit ulsterbank.ie/bankline to update your details.