It's been a widely held view that there isn't enough competition in the banking markets. In 2016, the Competition and Markets Authority (CMA) officially agreed and sought solutions.
Open Banking (also known as Open Data) is one such solution.
Nine large institutions, eight banks and one building society will have to provide access to their customers' banking data (your income and expense data) and allow initiation of payments (they need to be FCA authorised) from these accounts by the 13 January 2018. You will have to agree to this of course.
The CMA hopes this will lead to us getting better deals on loans, mortgages and other banking products. A new range of services and operators will likely pop up to take advantage of the data and potential customers on offer.
Providers will mine our data to suggest the most suitable products, such as suggesting that money in a low interest account might be better used to clear an expensive loan or offering digital budgeting services via an app.
From next year we should have easier access to more options for our personal banking services and the challenger banks will start to get real traction in the retail market.
Here is the official website if you want to find out more...Open Banking
The Open Banking Implementation Entity was created by the UK’s Competition and Markets Authority to create software standards and industry guidelines that drive competition and innovation in UK retail banking.