Quick answer: Open banking is a UK-regulated system that lets you grant read-only access to your transaction data to authorised third parties, without ever sharing your online banking password. CleanBooks AI uses this to import transactions automatically; it can see and categorise your transaction history, but it cannot move money or take any action on your account.
Connecting your bank account to any third-party software understandably gives people pause. Open banking exists specifically to make that connection safer than the alternatives, and it’s worth understanding exactly what it does and doesn’t allow.
What open banking actually is
Open banking is a regulated UK framework requiring banks to allow customers to securely share their financial data with authorised third-party providers, through a standardised, secure connection rather than by handing over login credentials directly. It’s regulated by the Financial Conduct Authority, and any provider using it must be authorised to do so.
What access it grants, and what it doesn’t
- Read access to transaction data, so your software can see and categorise what’s already happened in your account.
- No access to your online banking password or login details; you authenticate directly with your bank, not with the third-party software.
- No ability to move money, make payments, or take any action on your account; it’s strictly one-way, data out, nothing in.
- Access that you control and can revoke at any time, directly through your bank or through the third-party provider.
How this connects to your MTD reporting
For CleanBooks AI specifically, this connection is what lets Keeva categorise transactions automatically without you manually entering each one, which is also what keeps your quarterly updates accurate and current with minimal ongoing effort. See is it safe to connect your bank to AI bookkeeping for more on the broader safety question.
Want MTD to run itself in the background? See how CleanBooks AI works.
