Open Banking is the secure way to give authorised providers (such as Chip!) access to your financial data. What we mean by "data" is the information banks already have on record on how we use our accounts day-to-day such as balance, transactions and how much we are spending and saving. This data can be harnessed for your benefit to help manage your money, budget or get better deals by sharing it with FCA regulated third parties.
Under the scheme set up in 2018 by the Competition and Markets Authority on behalf of the Government, UK banks must allow you to share this information with the idea behind these changes to bring more competition and innovation to the financial services industry.
To plug into your bank we use a provider called ‘Truelayer’ who directly and securely connect your current account to Chip through an ‘Open Banking API’. You’re never asked to share your password or login details with anyone other than your own bank or building society and Chip or Truelayer will never store any of these credentials.
Every provider that uses Open Banking to offer products and services must be regulated by the Financial Conduct Authority and you’re always in control of which providers can access your information. In conclusion the data you share with Chip through open banking allows our app to work its magic! It’s clever, secure and simple.