Education - Archie

In the UK, 78% of people don’t know what Open Banking is*.

We’re here to change this.

*based on a survey of 434 UK residents who use online banking.

So what is Open Banking?!
Good question.

In short, it’s technology that unlocks payments to enhance customer journeys, and data to drive audience insights and consumer empowerment.

For payments, it can reduce the clicks in a payment journey so your customers can enjoy the moment of gratification rather than dread the ordeal of checkout, while saving you at least 70% on transaction fees (yup – you read that right).

In terms of data, it connects you to your customers’ bank accounts (always with their consent, of course), enabling you to offer tailored products and services specific to them, rather than blanket, bog-standard ones.

But how is it relevant to me and my industry?

Fintech, edtech, femtech, medtech (the list goes on!) are spearheading a growing demand across all industries for smooth, friction-free journeys and personalised experiences, while showing a willingness to share personal data (for the right incentive).

Open Banking adoption is rapidly growing, but it’s usually targeted at large corporates and financial services – through education and innovation, we’re here to champion everyone (regular people, small businesses, medium business, big businesses – everyone!) to make sure that they get the great benefits which Open Banking provides.

Show me some proof

We want organisations in every sector to benefit from the possibilities of Open Banking.

If you want to enhance your payment journeys, get to know your customers better than ever, and ultimately evolve your value proposition – then Open Banking is relevant to you. And if you’re a human being who wants to take back control of their data, and actually benefit from who has access to it, then Open Banking is for you as well.

We’re revolutionising not just our own sector, but yours too.

And we’re just getting started.

Get started with us

Why is it called ‘Open Banking’?

A number of regulations, including the European Union's Payment Services Directive 2 (PSD2) and the UK's Open Banking Initiative aim to increase competition and innovation in financial services by requiring banks and financial insitutions to open up their data to third-party providers.

This is where the term 'Open Banking' originated, but it has evolved to include the concept of a more connected financial ecosystem - all in the pursuit of greater transparency and consumer choice. When we say that we're taking back control and empowering society - this is what we're referring to.

I'm skeptical...

The important thing to remember is that none of this technology will ever work without the end user’s consent, and that it’s actually more secure and fraud-preventing than the alternative. A person who grants a business access to their bank account will benefit from smoother journeys, better products and services, and the comfort of knowing that they are in control of what they do with their money - or as we like to call it, financial freedom.

How can I make the most of Open Banking?

The possibilities of Open Banking are huge. Aside from the vast cost savings and efficiencies seen from our payment products, our data products open up a world of smoother customer journeys and powerful, granular insights for your business.

Are you sure it’s safe?

Our number one priority is security, and the same can be said for Open Banking technology. Double secure! This is down to a few key things.

Bank-level security: Open Banking uses robust software and security systems that have undergone an enormous amount of testing. This means that users don't have to share login details, PINs, or passwords with anyone except their actual bank or building society - so less chances of a security compromise.

Regulation: The Open Banking Directory only allows apps and websites that are regulated by the Financial Conduct Authority (FCA) or a European National Competent Authority to enroll. We're all rigorously vetted.

User control: Users have total control of their data and only they can choose whenand how it's accessed, and by whom.

Additional protection: In the rare event of an unauthorised payment, the bank or building society has to reimburse the user. Users are also always protected by data protection laws and have access to the Financial Ombudsman Service. Protection all round!

Archie Glossary

(Told you we hate jargon)

AIS(P) - Account Information Service (Provider)

Account Information Service Providers collate financial information across their customers' various accounts (and even across their different banks). They can look, but they can't touch: this type of provider is all about the data and isn't involved in moving money around. A budgeting app that provides advice based on the customer's spending habits would be a good example of this kind of service.

API - Application Programming Interface

An Application Programming Interface is the whizzy bit of tech that makes it possible for different computer programs to talk to each other and share data. In the context of Open Banking, authorised providers use it to build apps or other software that securely connects to the customer's bank account(s).

Consent

Customers will only be able to use Open Banking services if they give their express consent first. The customer stays in total control throughout the process: they decide what information they share, who has access to it, and for how long. They can also withdraw their consent at any time, either directly through the app or by contacting their bank.

Cost of living crisis

The rising cost of living is caused by high inflation, which happens when supply doesn’t meet demand in our economy -- so goods and services get a lot more expensive because global shortages mean there aren't enough of them to go around.

Customer

In this case, the person or business who consents to allowing the third-party provider to connect with their bank(s).

Directory

The Open Banking directory is where regulated providers enrol to access the technology they need to connect with customers' banks. Once they've joined, participants can securely request and grant access to financial data.

Financial freedom

Financial freedom is what we strive for; where people are empowered to take control and ownership of their finances.

Invoice Link

Add a unique payment link to your invoices, which uses bank-grade security to authenticate the payee before confirming the due payment. This product cuts down hassle, saves on fees and speeds up payment collection.

JROC - The Joint Regulatory Oversight Committee

This cross-authority committee is an all-star team of the UK's main financial authorities and regulators. Its mission is to continue to drive Open Banking forward, figuring out what the industry will look like in the future and advising on how best to get there.

KYC - Know Your Customer

Know Your Customer standards are designed to protect financial institutions against crimes such as fraud and money laundering. It involves running through several steps to check the customer's identity, confirm that the funds come from a legitimate source and assess any potential money laundering risks.

OBIE

The Open Banking Implementation Entity is a UK governmental body that: a) supervises Open Banking providers (like us!) to make sure that we're sticking to the rules and regulations; b) promotes Open Banking for wider use and greater understanding of its benefits; and c) provides both companies and customers with technical assistance and support handling disputes.

Open Banking

In a nutshell, Open Banking allows approved providers to access customers' bank accounts (but only with the account holder's express consent, of course). This access might be read-only (so, they can only deal with the data) or it might allow them to move money around, too.

Pay by Bank

A pay-by-bank service allows customers to pay directly from their bank account -- as funds are sent straight from bank to bank, sellers don't have to pay traditional charges and the funds are received right away. It can either be used as an option alongside other payment methods, or offered as a standalone payment option.

Pay by Link

Sellers can use this technology to generate a secure payment link. Once they've received the URL, the customer can easily make the payment in a few clicks.

Payment Initiation Service (Provider) (PIS / PISP)

A Payment Initiation Services Provider makes bank-to-bank payments possible: they can move money directly from a customer's bank account, as well as accessing their financial information. From the customer's point of view, it allows them to pay directly from their account at checkout without entering their card details.

PDF - Portable Document Format

A file format that presents and exchanges documents — no matter what software, hardware or operating system you use.

Point of Sale (POS)

The point of sale is where the customer pays: this could be online or a physical checkout point. Our point-of-sale terminal is flexible and convenient: you can use it to send a payment link by SMS or email, or create a QR code for the customer to scan.

QR code (Quick Response code)

A QR code is a type of barcode that can easily be ready by a digital device, such as a smartphone's camera.

Sandbox

A sandbox is where we test the technical stuff, to make sure it's all working properly. For example, we might use the sandbox to check that our software is playing nicely with the Open Banking directory and that everything is running as we intended.

Subprime Loans

The subprime market consists of loans made to people or businesses that are higher risk due to their poor credit history or lack of resources - meaning they might not be able to keep up with their repayments. To counteract the risk, banks charge higher interest rates or even adjustable-rate mortgages, where rates can be increased at specific points in time. The mortgage subprime market hit its peak in 2006 and subsequently burst in 2008, affecting the global stock exchange and causing a worldwide recession.

Third Party Provider (TPP)

In the context of Open Banking, a third-party provider is the person or organisation who's using the software to access customer accounts. They'll either be compiling read-only data (in which case they're known as Account Information Service Providers) or they'll also be moving money and making payments (these ones are Payment Initiation Services Providers).

At Archie, everything starts with a hi... So however you say hi - say hi back.

hi@hi-archie.co

But how is it relevant to me and my industry?