• Loans
    • Loans
    • Our Loans
    • Loans FAQs
    • Money Navigator
    • Budget Planner
  • Membership
  • Savings
    • Savings
    • Savings FAQs
    • Christmas Saver
    • How to Pay In
  • BEESMART
    • BEESMART
    • BEESMART FAQs
  • About Us
    • About Us
    • Our History
    • Our Board
    • News
    • Our AGM
    • Contact Us
  • Member Hub
    • Member Hub
    • Debt Advice
    • Mobile App
    • Savings Insurance
    • ENGAGE
    • Partners
    • Busy Bee Lottery
    • Benefits Calculator
    • How to Pay In
  • Register
  • Login
  • Home
  • About Us
  • News
  • Understanding Open Banking
Understanding Open Banking

21 September 2021

Understanding Open Banking

Amanda Wilcock, Chief Operating Officer at Manchester Credit Union provides an explanation of what Open Banking is.

“Open Banking”. I’m sure you’ve all heard of this by now; if you’ve applied for a loan from us recently you certainly will have, but what’s it all about?

In the past, if a lender was assessing a loan application they’d likely ask you to supply your bank statements for the last 30-90 days so that they could make a sensible calculation of what money you had coming in (your income) and what you paid out regularly (your expenditure). These calculations are what help to determine your Disposable Income and this is the crucial figure which indicates whether or not you can afford the loan you’ve applied for.

The introduction of Open Banking means that we no longer need to see these paper statements and you no longer have to make a special trip to a branch of your bank to request them! Lenders partner up with organisations who receive the data from your bank, organise it into an easy-to-read format and then pass it on to a lender. They don’t store any of your data in their systems and a lender can’t request the data more than once without getting your permission each time.

As a lender, when we get the data it doesn’t look like a bank statement; the entries are grouped together in categories, so payments for rent or a mortgage will be in the same category as Council Tax, and spending on Gas, Electric and Water will be in another group. This makes it really easy for us to see the things that matter in our decision making.

You may be thinking that this all sounds great, but is it safe? Well, the short answer is, yes. Open banking is regulated through the Payment Services Regulations 2017, meaning that it’s safe to take advantage of open banking services. Put simply; financial service providers can only access your financial data if you’ve actively consented for them to do so. You can also check whether a provider is regulated on the UK Open Banking Directory.

You can find out more about Open Banking on our website.

Back to News Share
Understanding Open Banking

Related Articles

UK Savings Week : 18th – 24th September 2023
15 Sep 2023

UK Savings Week : 18th – 24th September 2023

Read More
Greater Manchester credit unions join forces to launch cost of living loan
21 Feb 2023

Greater Manchester credit unions join forces to launch cost of living loan

Read More
Winter Warmer Competition Results
25 Jan 2023

Winter Warmer Competition Results

Read More
Competition Winner
20 Sep 2022

Competition Winner

Read More
Family Fun Day Event
19 Aug 2022

Family Fun Day Event

Read More
Back to news

Manchester Credit Union

Address:
Ground Floor, Queens Court, 24 Queen Street, Manchester, UK, M2 5HX
Tel:
0161 231 5222
Email:
info@manchestercreditunion.co.uk
Web:
www.manchestercreditunion.co.uk
Latitude:
53.47972
Longitude:
-2.24748
We're Open:
Monday 09:00 - 16:00
Tuesday 09:00 - 16:00
Wednesday 09:00 - 16:00
Thursday 09:00 - 16:00
Friday 09:00 - 16:00

Wythenshawe Branch

Address:
Unit 10 Haletop, Wythenshawe Civic Centre, Manchester, UK, M22 5RN
Tel:
0161 231 5222
Email:
info@manchestercreditunion.co.uk
Web:
www.manchestercreditunion.co.uk
Latitude:
53.37940
Longitude:
-2.26178
We're Open:
Monday 09:00 - 15:30
Tuesday 09:00 - 15:30
Wednesday 09:00 - 15:30
Thursday 09:00 - 15:30
Friday 09:00 - 15:30

Rochdale Branch

Address:
14 Drake Street, Rochdale, OL16 1NT
Tel:
0161 231 5222
Email:
info@manchestercreditunion.co.uk
Web:
www.manchestercreditunion.co.uk
Latitude:
53.61651
Longitude:
-2.15611
We're Open:
Monday 09:00 - 15:30
Tuesday 09:00 - 15:30

  • Like us On Facebook
  • Follow Us On Twitter
  • Find Us On Instagram
  • Follow Us On LinkedIn

Manchester Credit Union Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (FRN 213400)

  • Help
  • Website T&C
  • Privacy Policy
  • Cookie Notice
  • Governance & Regulation
  • Fair Processing Notice
  • Complaints
Progress Systems

Progress Systems

Cookie Notice