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Open Banking is a secure UK financial system that allows you to share your bank transaction data with authorised third-party providers, like Capital on Tap. By using secure APIs instead of passwords, it enables faster credit decisions, better interest rates, and automated bookkeeping, giving you more control over your business finances while maintaining high-level security.
How Open Banking works in the UK
Open Banking was introduced to give you more control over your own financial data. Historically, your transaction history was held exclusively by your bank. Now, you can choose to share that data with other regulated financial institutions to access better products and services.
Instead of sharing your login details or sending manual PDF statements, Open Banking uses APIs (Application Programming Interfaces). These act as secure digital "pipes" that allow different financial systems to talk to each other safely.
Sharing your financial data safely
When you choose to use an Open Banking service, the journey is designed to keep you in the driver’s seat. Here is what you can expect.
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Explicit consent. You must explicitly agree to share your data with a specific provider for a specific purpose.
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Secure redirection. You are redirected to your own bank’s secure website or app to log in. You never share your password with the third-party provider.
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Controlled access. You choose which accounts to link. The provider cannot see anything you haven't authorised.
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Managing permissions. Your consent usually lasts for 90 days, but you can revoke it instantly at any time through your bank or the provider's app.
Advantages of Open Banking for small business owners
Using Open Banking-powered services can significantly reduce the administrative burden of running a company.
Accelerated credit applications
By sharing real-time cash flow data, you can receive a decision on a Capital on Tap Business Credit Card in minutes. It removes the need for manual document reviews and saves you the hassle of downloading and uploading bank statements.
Access to higher credit limits
Because we can see a live view of your business's financial health, we may be able to offer credit limits up to £250,000. This real-time data helps us see strengths in your business that traditional credit checks might miss.
Consolidated financial management
You can use specialised apps to view balances from multiple different banks in a single dashboard. This gives you a clear, real-time view of your total cash position without logging into several different platforms.
Improved bookkeeping accuracy
Many accounting software packages use Open Banking to automatically sync your transactions. This reduces manual data entry, prevents errors, and keeps your records up to date for tax season.
How Capital on Tap uses Open Banking
To provide a seamless experience, we partner with Plaid, a leading global Open Banking platform. When you apply for a Capital on Tap Business Credit Card, linking your account via Plaid allows us to verify your business income instantly.
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Your data is encrypted. Plaid uses bank-level encryption to protect your information during transmission.
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Privacy is maintained. We only receive the specific data points needed to assess your application or manage your credit limit.
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Efficiency is prioritised. Most of our customers find that linking their account via Open Banking is the fastest way to get funded and start earning rewards.
Approval is subject to status. Please remember late repayments incur interest and can affect your business credit score.
How we keep Open Banking secure
While you manage the front-end permissions, we manage the back-end security. At Capital on Tap, we only operate within the official, regulated Open Banking framework.
The Open Banking Directory
Every company that sends a request for data is checked against the Open Banking Directory. This is a list of companies that have been vetted and approved by the Financial Conduct Authority (FCA) or equivalent EU regulators. If a company is not on this list, they simply cannot use the system, which provides a powerful layer of protection against unauthorised access.
Secure API technology
All transfers of information are conducted through a secure API. This means that data is encrypted to the same high standards as your bank’s own online banking systems, making it unreadable to anyone else.
How you can stay safe using Open Banking
While the system is built with bank-grade security, there are several steps you can take to stay protected and in control of your data.
Never share your login details
A genuine Open Banking provider will never ask for your bank login details, PIN, or passwords. You should only ever enter these details directly into your own bank’s secure portal or app during the authorisation step. As long as you keep these details secure, Open Banking is safe to use.
Always check the details
Before you agree to link your account to any service or product, take a moment to:
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Read the terms and conditions. Understand what you are signing up for.
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Check the permissions. Make sure you are happy with exactly what data the provider can see (e.g., balance only or full transaction history).
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Review the privacy policy. Check how your information will be stored and if it will be shared with anyone else.
The bottom line
Open Banking is an FCA-regulated technology that helps you get more from your financial data. By linking your accounts, you can enjoy faster credit decisions, reduced admin, and more tailored financial products. At Capital on Tap, we use these tools to help you access the credit you need to grow, without the traditional banking hurdles.
Frequently asked questions
Is Open Banking in the UK safe?
Yes. It uses the same high-security systems as your bank. You are also protected against unauthorised payments under the Payment Services Regulations.
Which banks use Open Banking?
All major UK high street banks (such as Barclays, HSBC, Lloyds, and NatWest) and digital banks (like Monzo and Starling) are part of the network.
Can I refuse to use Open Banking?
Yes, it is entirely optional. If you prefer not to use it, you can still apply for our products by manually providing bank statements, though this may result in a slower decision process.
