New UK " open banking " rules come into effect this month , an under - reported trend that could cause the largest shake - up in personal finance in years . The rules enable customers to share personal financial data with companies other than banks , allowing them to shop for better deals on mortgages , overdrafts , insurance and broadband . The move aims to open up the financial sector and make it more competitive . But some warn it may put consumers ' private data at risk and cause confusion when dealing with third parties . Gareth Jones from Which ? said consumers " could find themselves in a complicated web of providers " .
New UK "open banking" rules come into effect this week, an under-reported move that could cause the largest shake-up in personal finance in years. The rules enable customers to share personal financial data with companies other than banks, allowing them to shop for better deals on mortgages, overdrafts, insurance and broadband. The move aims to open up the banking sector and make it more competitive. But some warn it may put consumers' private data at risk and cause confusion when dealing with third parties. Gareth Shaw from Which? said consumers "could find themselves in a complicated chain of providers".