Open Banking

Open Banking allows you to share your HSBC account information and make payments via Third Party Providers (TPPs), without sharing your log on details. It enables those TPPs to access your account information and provide you with appropriate services. We won't share your account information or allow payments without your permission.

Open Banking is an industry-wide initiative and has been introduced following a investigation by the Competition and Markets Authority (CMA). The CMA requires the largest banks in the UK and Northern Ireland to adopt Open Banking to enable you to share your account information with third party providers, giving you more control over your account information and other ways to make payments.

Third Party Providers (TPPs) are companies that use Application Programming Interfaces (APIs) to access your bank accounts in order to provide account information services and/or to initiate payments. These TPPs cannot access your information without your consent.

Firms who are providing services by Open Banking in the UK must be registered with the FCA, and will need to comply with data protection laws.

As an HSBC customer, you'll need to be registered for Business Internet Banking in order to provide the necessary log in details. Every new request received by a TPP will need to be authorised using these security details.

It's entirely up to you whether you choose to use Open Banking. It's an alternative way of making payments and sharing your account information.

You don’t need to register for Open Banking with HSBC, you just need to have access to Business Internet Banking to provide authorisation to HSBC to carry out your requests. If you’ve not already registered for Business Internet Banking, please go to www.hsbc.co.uk/bib.

If a TPP asks you to share account information they have to be clear what they're going to do with it and how long they will keep it for. This data may include:

1. Account name, number, sort code and account balance
2. Direct debits, standing orders, other payee agreements that you may have set up and details of single one-off payments scheduled for a future date
3. Incoming and outgoing transactions, details of each transaction on your statement and your account balance after each transaction
4. The types of accounts you have, including account benefits, fees, services and interest.

The nine largest retail banks and building societies operating in the UK and Northern Ireland are currently required to offer Open Banking to customers, but others also participate.

The aims of Open Banking are to offer greater market choice on how you control your finances, and how you compare and choose which financial products are right for you.

PSD2 is an EU Directive and its objective is to provide greater protection for consumers by enhancing security standards and improve your rights as a consumer of financial services as well as enhancing your online security.

It aims to give you, the consumer, the option to access new products and services from regulated Third Party Providers through the UK’s Open Banking initiative.

TPP stands for ‘Third Party Provider’. If you use Online Banking, you’ll be able to access new products and services from regulated TPPs.

There are different types of TPPs and they have different offerings.

HSBC will only allow regulated TPPs to access your accounts through our systems.

If you want to verify if a TPP is safe, you can check the FCA’s register at: register.fca.org.uk.