Say Hello to Open Banking

Faster Bank Transfers with Open Banking

When we spoke to customers and did technical research and testing, people wanted to make bank transfers and they wanted to make them fast, securely and without leaving the platform.  

With this brief, Stake had a few choices to deliver it. When we looked around, spoke to the best in the business and canvassed our early adopters, the choice was simple. Open Banking. Why? When it came to facilitating that, the new Open Banking platform was without doubt the best and most secure way for customers to do that.  And after some initial investigations, it became clear that Open Banking (OB) is the future of bank transfers and payments. 

With Open Banking, you can make secure and faster bank transfers from your bank or building society without having to leave Stake. There is also no need for sharing your debit card details, no hidden transaction fees and definitely no web scraping.  

To bring the future of payment to the future of brokerage,  we partnered with TrueLayer, an FCA regulated Open Banking provider. This ensures that Stake customers get access to the future of payments from Day 1 of Stake’s arrival in the UK.

The History Of Open Banking

For the history buffs, Open Banking has been in the works for around 5 year.  In 2015, the European Parliament adopted Open Banking aka PSD2, aka the (revised) Payment Services Directive.  The aim of the directive was to promote innovative payment methods and data sharing by banks to benefit customers across Europe.

A bit later on in January 2018,  Open Banking went live in the UK following a legislative ruling requiring the 9 largest UK banks to have APIs available, releasing their data in a secure & standard format, allowing easy online sharing between the customer, the bank & authorised entities.

Open Banking – Uptake

As of writing, there are over 200 FCA-regulated providers who are enrolled in Open Banking. Some are payment processors, while others just facilitate data sharing to help customers manage their finances better online. Some even allow verification through the Open Banking APIs. Our provider, TrueLayer does all of these.

You can learn more about these providers and who does what on the Open Banking (UK) website.

How Open Banking works on Stake

On Stake, with Open Banking you log in to a secure page hosted by your bank to authorise your bank transfer, without having to go to your online bank or use your debit card.

Just like you would with your bank online, you login to your bank (but via Stake) and confirm the transfer. As the login page is a secure page hosted by your bank, Stake doesn’t have any access to your bank login details.

If you have 2 Factor Authentication set up with your bank, you’ll need to enter your code so your bank knows it’s you.

Now the Step by Step Process

When making a funding on Stake, you’ll elect the amount (in GBP) you want to fund into USD. Before you confirm and commit to your transfer, the interbank spot rate, any fees and complete transaction details will be there for you to review.

Once you’re ready to transfer GBP to USD, the app will direct you to our Open Banking screens (powered by True Layer) for you to work through the following:

  1. Choose the bank to transfer money from
  2. You’ll be directly to your bank’s website, where you’ll need to log in (which may require a 2FA completion)
  3. Pick which account you’d like to transfer from, and click approve.

Boom. 3 simple steps and your GBP will be transferred into USD and on its way to your Stake brokerage account.

Then it’s time to seize the world’s biggest stock market.

Why we like it

Some other financial apps and websites use a process called screen-scraping, which requires you to give them your bank login details and password so they can make payments to them on your behalf.

With TrueLayer (and Open Banking generally), you’re never asked to share your password or login details with anyone other than your own bank.  You get to choose what you share.

Some things worth noting

Some banks have different limits for how much you can send by Open Banking. You may have your own limits set on your account.   You should check with your bank if they don’t allow a transfer of the size you want.