What is Open Banking, and how does it work?

You’ll hear the abbreviation ‘TPP’ used a lot when we’re talking about Open Banking.

Third party providers or TPPs are regulated companies that offer services through Open Banking.

There are three types, those that:

• show you a combined view of all your accounts with different banks or building societies in one place. They may also offer things like budgeting or accounting tools or product comparisons. These are known as Account Information Service Providers or AISPs.
• can send online payments directly from your accounts on your behalf. These are known as Payment Initiation Service Providers or PISPs.
• can issue you with a card that you can link to your payment account with us.

You don’t have to use a TPP’s services if you don’t want to – your financial information belongs to you and it’s your choice how you use it.

You can choose to share some or all of your account information with regulated TPPs that are enrolled in the Open Banking Directory.

This information could be:

• your account name, account number and balance;
• details of your standing orders, direct debits or recurring and future dated payments;
• details of your account transactions;
• features and benefits, such as the type of account you have and fees you pay;
• any contact details we hold, such as your address, telephone numbers and email address.

You can stop sharing your information at any time using eBanking or District.

TPPs are responsible (and accountable) for how they use your data and how they make payments on your behalf. They can only do this with your permission.

Open Banking lets you make a payment directly from your bank account, for example when you’re buying something through a third party app or website.

• You can choose to pay straight from your bank account instead of providing your card details.
• Only a regulated TPP enrolled in Open Banking can give you this option and you must give them your consent.
• You’ll enter your online banking logon details on a secure Danske Bank webpage so that we can be sure it’s you.
• After you confirm the payment details, the TPP will make the payment directly from your account.

You can find out more about Open Banking at www.openbanking.org.uk, or read some of our FAQs below.

You can use Open Banking for all the payment accounts that you can access online such as:

• personal current accounts (including Danske Re:pay)
• business current accounts
• online instant access savings accounts (for example Summit account)
• credit card accounts
• MasterCard Corporate Card (business customers)

Some of our accounts are not payment accounts and cannot be used with Open Banking (for example loan accounts and fixed term deposit accounts).

The account information an AISP may ask you to share with them will vary depending on the services they offer. It’s up to you whether you agree to this or not. We only share the information you have agreed to share, such as:

Your account details

• Your account name, number and sort code
• Your account balance

Your regular payments

• Details of payee agreements set up on your account
• Details of your standing orders
• Your direct debits
• Details of recurring and future dated payments on your account

Your account transactions

• Details of your incoming transactions
• Details of your outgoing transactions

Your account features and benefits

• The type of account you have
• The fees, charges and interest you pay
• The benefits, services and interest your account offers

Your contact details

• The address, telephone numbers and email address we hold for you

You can now make the following types of payment through a PISP:

• domestic payments
• future dated domestic payments
• standing orders
• international payments (we call these ‘foreign payments’)

Business Users will also be able to make Bacs, CHAPs and file payments through a PISP if the District agreement permits this and the User has the appropriate authority.

The payment types you can make through a PISP may vary depending on the services they offer.

Yes. TPPs that are authorised and regulated by the FCA or another European regulator must:

• make sure that your personalised security credentials (your online banking logon details) aren’t accessible to other parties and are transmitted securely;
• obtain your explicit consent before providing their services;
• have complaint handling procedures;
• comply with various other regulatory requirements;
• not store sensitive payment data or ask you for it if they don’t need it;
• not request more information than they need to provide you with their services;
• not change a payment instruction you give.

Before using the services of a TPP, you should check that it is authorised and regulated by the FCA or another European regulator. You can check this on the FCA’s register.

Yes, any of your Users can use TPPs’ services – but these will depend on the authority you’ve given them.

Any User with permission to make enquiries on your accounts will be able to use the services of an AISP or link a card issued by a different payment service provider to your account.

However, the User must have the authority to make payments out of your account to use a PISP’s services. Any payments that need authorised by more than one User won’t be made until they’re fully authorised in District:- it’s the User’s responsibility to tell any subsequent authorisers that the payment needs to be approved in District.

It is important to note that any restrictions you’ve placed on payments (such as limits on the amount of any payment that a User can make) will also apply to payments made through PISPs.

Variable Recurring Payments (VRPs) are a type of Open Banking payment that let you give permission for payments to be made from your account within rules that you agree in advance, such as payment limits, timing and how long the permission lasts.

There are two types of variable recurring payments;

• Sweeping Variable Recurring Payments, where money is moved automatically between two accounts in your own name — for example, moving extra money from your current account into savings.
• Commercial Variable Recurring payments - these are recurring payments for goods and services with a business.

We currently only support VRPs for sweeping between your own accounts. We do not currently offer commercial VRPs for paying businesses or service providers.

VRPs are designed to give you more control, because you can see what you have agreed to, set limits in advance and manage your consent more easily. 

Some TPPs can issue cards that you can link to accounts with another bank or building society. If you want to link the card to your Danske account, you’ll have to give the TPP your consent to do this and your account details. The TPP can ask us to confirm whether there are sufficient funds available in your account every time you use the card, but you’ll have to give us your consent to do this. If you use the card before you give us your consent, we won’t be able to provide an answer so the transaction may be declined. We’ll never give the TPP your account balance or any other details, just a yes or no answer.

Yes, you can do this at any time through eBanking and District.

If you cancel a consent you have previously given a TPP, then we won’t allow them to access your account in future (unless you give them your consent again). This won’t change any permission to make a payment or share your account information that has already taken place.

No: if you are making a payment using the services of a TPP then you use the account to which your card is linked, rather than the card itself. So the card scheme rules don’t apply.

With Open Banking you may find that you’re offered more financial services than before, to give you more control over your money and help you compare products. To use these services you’ll be asked to give your consent to your bank or another provider to access your account information or make payments on your behalf.

With Open Banking, you don’t share your online banking logon details and we only share your information using secure channels.

Other companies may ask you to share your online banking logon details by giving your consent to them.

However you choose to share your account information, you should protect yourself:

• Make sure you are confident the company is who it claims to be.
• Don’t give out your personal or financial details unless it is to use a service you have signed up to and you’re sure that the request for your information is related to that service.
• If you share your account information with another company, it is their responsibility to protect it. Make sure you understand how they plan to use it and how long they will hold it for.
• If you don’t know who you are talking to, or you have reason to suspect they aren’t who they claim to be, don’t disclose your online banking logon details, or other personal and financial information.

Remember – a genuine bank or company will never contact you out of the blue to ask for your PIN, password or to move money to another account. Fraudsters will often try to impersonate somebody you trust, so it’s important to understand the difference between a legitimate request to share your account information for a service you’ve chosen to use and an unexpected request.

Learn how to keep it safe, or for more information on how to protect yourself against fraud visit:

• Take Five Website
• Financial Conduct Authority website

If your online banking logon details have been lost, stolen, or in the hands of someone you haven’t authorised, please contact us immediately by calling:

• 0800 917 7657 if you’re a personal customer; or
• 0800 917 7018 if you’re a business customer.