NatWest is tapping Open Banking for a transaction categorisation service that lets businesses offer their customers personalised insights.
With customers’ consent, businesses can use enriched transactions data to provide those customers with things like tips on how to manage their budget or reduce their carbon footprint.
In addition, the service can support businesses with affordability checks - for example, when checking customers’ eligibility for a loan or a mortgage, reducing the need for people to do things like upload payslips, helping to save time and reduce the risk of manual error.
The service works by automatically linking customer transactions to categories aligned to FCA standards, plus includes details on whether spending is ‘discretionary’ or ‘committed’. The service can also provide businesses with a three-level breakdown of those categories as well as deductions at source and the carbon score for each transaction.
Eligible firms access the service through an extension of NatWest's accounts and transactions API for a fee.
Kevin Dearing, head, API commercialisation, NatWest, says: "Enriched Transactions marks the start of an exciting new relationship between banks, customers and businesses that’s underpinned by customer consent, trust and security.
"The new service makes it easier for a wide range of businesses - from merchants to lending providers - to offer customers a more secure and efficient way of verifying their income when carrying out affordability checks. It will also enable businesses to provide NatWest customers with greater insights on their day-to-day spending and their carbon footprint."