What is open banking?
Open banking offers an opportunity for charities, businesses and consumers to access better financial products and services and a new way to collect payments. It has been expanding rapidly as UK and EU regulations have created frameworks for its operation since 2018. This growth has been encouraged by:
• The decline of cash and growth of electronic payments. • Ecommerce taking a growing share of retail purchases. • The high costs to merchants of accepting card payments.
And it’s not new. The technology is already widely used by major banks and financial institutions, personal investment tools, and financial safeguarding apps and is trusted by nearly five million people today. This includes HMRC, which announced in January 2022 that it had collected almost £2.5 billion in tax using the technology.
Open banking takes advantage of our faster and more secure digital age with a seamless and alternative payment method for donors. It also offers plenty of instant and lasting benefits for charitable organisations too. In this guide, we look at how with open banking technology your charity can :
Make a big transformation with minimal disruption: intelligently increase revenue through lower fees, enhance security and productivity3, and potentially do it all for free.
Fundraise for the future: embrace new payment preferences that align with today’s long-term advocates prioritising community, and lock in donors of the future.
Learn how easier, faster and bigger payments are made: consumers want a slicker, more engaging and fulfilling donation journey – this is how you get started.
2Source: The Open Banking Implementation Entity (OBIE) February 2022.