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What is Open banking?
Last verified 31 October 2026
Open banking lets consumers and small businesses securely share their bank and credit card transaction data with trusted third parties. Those providers can then build apps and services that help people save time and money.
Why it matters to landlords
For a landlord, open banking is what usually sits behind a bank connection in accounting or MTD software. Instead of downloading statements, you give permission and transactions flow in. The government's competition regulator, the CMA, estimated in 2021 that about half of UK small businesses and over four million consumers used open-banking-powered services.
It came from a 2017 CMA order that required the nine largest banks and building societies in Britain and Northern Ireland to make transaction data available through common technical standards. For records, it means fewer typing errors and a clear date and amount on every entry, which suits digital record keeping. You still decide each transaction's category. Check whether your bank is supported before you rely on it.
Example
Carl connects his rent account to his software. Three tenants' payments of £850, £900 and £875 appear automatically with their dates. He tags each as rent and then separately tags the £140 insurance direct debit.