What is Open Banking?

A frequently asked question we get at Chip is ‘What is Open Banking?’.

Open Banking allows you to share selected financial information that only you and your bank can see, such as your contact information, balance and transaction history, with FCA-regulated organisations.

This makes it easier for you to use services outside your bank (such as Chip) who can access your information to personalise products or make suggestions based on your habits.

Open Banking is a government initiative

In 2018, the Competition and Markets Authority set up this scheme on behalf of the Government - for UK banks to allow you to share your information with the idea of bringing more competition and innovation to the financial services industry. Read more on the official website here. Or watch their video below.

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Why Chip uses Open Banking

We use Open Banking to provide you with a number of benefits, keep the app secure and offer a seamless service.

For example, we can verify your identity directly via your bank, offer secure and instant deposits and withdrawals between your nominated account only -  and use it to power our autosaving A.I tech to allow you to save just the right amount based on your spending.

All without you needing to fill out elaborate forms and provide this information to us manually.

How our Open Banking works

To plug into your bank, we use an industry- leading provider called TrueLayer who securely connects your current account to Chip through what’s known as an Open Banking API. This allows you to use Chip’s features seamlessly and do things like deposit money. 

Any time you move money, transactions are authorised by you and only you, with your fingerprint, Face ID or your online banking credentials directly with your bank.

Chip or TrueLayer will never store any of this information.

Regulated business

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. 

So the bottom line is, the data you share with Chip through open banking allows our app to work its magic! It’s safe, secure and simple.