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Open Banking Simply Explained by Swoop

What is Open Banking?

Open Banking is a legislation that requires banks to let their customers share their transactional data with third parties, like Swoop. Swoop has integrated with Open Banking to give SMEs the ability to compare and switch current accounts and make cost savings on everyday spending. It’s safe, secure, and will almost certainly save you time and money.

What does Open Banking mean to me?

Open Banking allows you to give consent to regulated 3rd party providers (that’s Swoop) to securely allow access to your bank transaction history or to make payments.

Open Banking can help you move, manage and make more from your money, and therefore your business. You are always in control of what transactional data you choose to allow access to, and you can stop access to your data at any time.

What are the benefits of integrating my business bank account with Swoop?

There are a number of ways in which integrating your bank account with Swoop will benefit your small business.

1. Savings

Open Banking brings significant cost savings, by analysing itemised spending on business bank statements while flagging overspending on anything from mobile phone, broadband, insurance and utility bills, to bank charges, ATM fees and foreign currency exchange rates.

It’s easy to see how quickly your savings add up by looking at our average savings for Swoop customers who have integrated their bank accounts with us…

  • £360 average annual saving for switching business current account
  • £540 average annual saving for switching business current account with an overdraft facility
  • £1,800 average annual saving from switching your overdraft facility to an invoice finance facility with an alternative finance provider
  • £6,000 average saved on foreign exchange through utilising FX activities outside the business current account
  • £1,027 average saved through switching utilities provider£485 average saved through switching insurance provider
2. Comparison

By securely integrating your business bank account, our technology quickly and confidentially compares it against the major UK banks for a variety of services, including:

  1. Bank rates
  2. Introductory offers
  3. Overdraft Facilities
  4. Electronic Payments
  5. ATM fees
  6. FX payments
3. Speed up access to funding

When customers consent to share their data, they can dramatically speed up the funding application and approvals process. Swoop’s SME customers have told us that the process of gathering paperwork, such as identification and bank statements to apply for funding, had always been slow, but plugging into Open Banking made it a far more efficient and effortless process.

How does Open Banking actually work?

Swoop can only access your transactional information safely and securely with Open Banking. You will be redirected to your bank’s online banking system (your login details stay private and are never shared with Swoop.) Your bank will ask you to verify that it is you and confirm that you are happy to give Swoop access to your data, what type of data, and for how long. Our smart technology will then be allowed access to your account transaction information to show you how much you’re spending and on what types of things. This will help you to manage your money more efficiently.

Open Banking has been designed to be safe and secure for customers. Swoop is FCA regulated and we always comply with data protection laws.

Case in hand – the bigger picture

One of Swoop’s recent customers had been rejected for funding due to their financial stability. After integrating their bank account with Swoop, we identified significant savings of well over £8,000 per annum across their spend, including FX and bank charges. These savings transformed their credit rating, and therefore their financial attractiveness to potential funders – enabling us to go ahead and secure the funds they required.

Get started

Getting started is quick and easy. Simply, set up your Swoop account here. Once we’ve verified your email address, we will need your approval to integrate your bank account into our safe, award-winning platform. You can leave the rest to us.

So get started, register here.

If you’d still like more information on Open Banking, this video covers all the info we think you need to know

https://www.youtube.com/watch?v=vVKGnSoQtGQ.

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