Open banking is a UK government initiative and was created to provide a secure, quick and convenient way to manage your money. Companies that use open banking have to be regulated by the Financial Conduct Authority (FCA) and have to follow strict rules and stringent standards to keep your data secure. Over 10 million businesses and consumers are already using open banking in the UK. In fact, you may already be using it to pay your utility bills or use financial services from familiar high-street banks or providers like us.
At Tembo, open banking allows us to connect to your bank account, so in the event of you requesting a withdrawal from your Lifetime ISA or Cash ISA, the withdrawn funds will be sent to the connected account by default.
This is an essential part of creating a new Tembo account and is used widely by other financial institutions. If you are transferring an ISA from another provider, you can skip setting up open banking. However, please be aware that in order to make any further deposits to your account through one-off contributions or direct debit, you will need to enable open banking.