Open banking for charities: the immense benefits and powerful advantages

Published June 2022


In this article, we highlight some of the key benefits of open banking and how charities can take advantage of this through our unique open banking platform and suite of products.



Open banking was mandated in 2017 by the Competition and Markets Authority (CMA). The goal was to break up the monopoly of banks holding onto customer data, in exchange for new, innovative and price-competitive products and services.

To use open banking, organisations must first obtain consent from the end-user, which our platform can facilitate. A main benefit of open banking is the wealth of available data that has never been shared before. In addition to this, open banking provides an alternative payment method that challenges traditional payment methods through its convenience, efficiency and cost-effectiveness.


Get more of the donation – power payments

Open banking payments are far more cost-effective and convenient for receiving donations or using at checkout. Through traditional payment methods, organisations are at the mercy of card processing fees, hardware costs and handling charges, to name a few. In addition to this, the funds collected can take several days to even be recognised within an organisation’s bank account.

With our Payments product, there are no variable processing or handling fees, just one simple fee across all transactions regardless of value. For example, on an average donation of £28, the savings made on the processing fees alone could be as much as 80%* when using our payments product. That’s 5x less than what you could be currently paying. If you were to scale that across fifty thousand transactions of £28 per month, that could be a monthly saving of over £30k.

Organisations get to see more of the donation amount received. And the donors have a better experience knowing that more of their donation is not being lost to excessive card handling and processing fees.

*based on a transaction fee of 2% + .25p per transaction


See funds faster

Unlike traditional payment methods, such as debit and credit cards, payments initiated through open banking are received in minutes, instead of days or weeks. This means organisations can act faster on such things as decisions or investments.

Payments initiated through open banking are account to account payments, meaning that they cut out the middleman and can be recognised in an organisation’s bank account much faster.


The customer journey can be customised to suit your brand…


Greater convenience

By offering the payment initiation service through open banking, donors or those at checkout no longer need to enter their payment details or even locate their purses or wallets. They are simply and securely redirected to their bank, where they access their bank in the normal way, be it via username or biometrically. Once at the bank, the amount to be paid is confirmed by the account holder, after which they are redirected back to where an organisation wants them to be directed to, such as a promotional page on their main website.

By using our platform, the whole process is seamless and takes no time at all. The customer journey can be customised to suit your brand and makes the overall experience an enjoyable one.

It’s also flexible, in that you can generate QR codes that can be used in the donation process. These can be positioned where and when you like and allow anyone to scan the QR code and donate in seconds. This offers a convenient donation method for those on the move, such as on their commute, without disrupting their routine.


Secure and safe

Payment initiation uses encrypted APIs. No bank login information is requested or stored as this is all handled by the bank. And as the process is driven through customer consent, the users themselves are providing consent at the point of sale or donation, reducing the risk of fraud.

At no point are payment details required to be entered, as this is all driven through the consent process, initiating an account-to-account transaction. This all makes for a safe and secure method of donating to an organisation or at checkout.


The power of data

Embracing the data available through open banking creates a whole new opportunity, from a better onboarding experience through to improved targeted marketing.

An individual consenting to their bank account data being accessed – in a read-only format – allows organisations to gain granular insights and accurate data. And with our platform, the data is in real-time, unlike other services available.


We are already connected to the various banks, have our own consent journey – which is customisable – and have the product APIs ready to go.


Reduced operational costs

Historically, a regular issue is where someone’s bank details are incorrectly entered. This results in costly chargebacks, the need to reengage with the account holder, a poor customer experience, and lost revenue.

By taking advantage of the open banking data, organisations could use our Authentication product that contains such information as the bank account, sort code and account name, all in real-time and from the source bank.

You gain confidence in the information and avoid human error when it comes to entering payment details.


Speed up onboarding

By combining our Authentication and Enhanced KYC products, organisations can make onboarding a more pleasurable experience, using accurate and real-time data from the source bank.

There’s no need to enter payment details, names, addresses, and emails. Instead, you can simply request the donor to confirm such details. This results in the manual effort from the donor being reduced to only a few steps, meaning you can make their onboarding experience more seamless and pleasurable.


Save on marketing

Our Transactions product allows organisations to gain access to granular insights in relation to an account that has been consented to. This data can improve decision making when it comes to how ‘sticky’ a donor may be.

Using this data allows organisations to target only those that have a greater chance of engaging and acting on marketing and promotions, resulting in more profitable marketing.


Simple to implement

Many open banking providers only provide the architecture into the various banks (back end), requiring organisations to build their own consent journey (front end) and product APIs. This could take a large amount of time to implement as well as be costly, especially if the skills needed to implement it are not available in house.

With our platform, we are already connected to over 60 UK banks and building societies, have a pre-built consent journey – which is customisable – and have the product APIs ready to go. No heavy lifting is required as we will integrate this into your customer journey seamlessly.


If this has raised a few questions or you would like to explore open banking with us, then please do get in touch. We have the knowledge, product, team and experience to get data and payments working for you.