What is open banking?
We all know the pain of logging into different banking applications to view our balances, or see the transactional activity in different accounts.
If you have a well-managed account structure, it’s likely you have different accounts for receiving your salary or student loan, paying your fixed outgoings via direct debit, and then your day to day spending.
Whilst managing accounts in this way helps keep our finances tidy and in control, it does mean we miss out on the ability to use the awesome analytical tools that apps like Revolut provide, such as showing us our spending trends and helping us set, and stay on track, for our budgets.
The purpose of Open Banking is to give us more control over our bank accounts. Specifically, Open Banking is a mechanism that allows us to share our transactional information with other banks and third parties in ways which benefit us as consumers.
Now that Revolut has launched an Open Banking feature, you’ll be able to track your Revolut transactions and your transactions from another bank, such as HSBC, Barclays or Natwest, all within the Revolut app.
How open banking works
Open Banking works using something called an API. An API is short for Application Programming Interface. API’s sit behind all types of products and services we use, very simply allowing different providers to share and access information from and with each other.
APIs are what makes it possible to move data between different applications, for instance by copying a link from an email into a Microsoft Word document.
The Open Banking API allows Revolut to connect to your external bank accounts that you set up in the app, enabling you to view your balances and transactions, and also now use cool Revolut features like budgeting and spending analysis, across all of the accounts we have linked.
Once you’ve set up the link to your bank, the process is automatic. The Revolut App will talk to your Banking App using the API to gather and display the information you need.
This doesn’t give Revolut access to your credentials or information at the other bank, nor will it allow Revolut to take money from your other bank accounts. It simply allows them to share data for you to view in the app.
How do I set up Open Banking in Revolut?
The process for setting up Open Banking is super simple. Head over to your Revolut App and select Open Banking from the widget menu, as showing in the GIF below. Choose which account you wish to link, and you will be directed to that banks app to authorise the link.
Once authorised, that bank account will now show in Revolut and update in real time automatically.
You can learn more by reading the Revolut blog post on the feature here
If you don’t yet have a Revolut account and want to take advantage of this feature, click this link to set up an account for free.
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