It’s important to understand the way in which we take information from your bank account for your savings, and how we are able to provide you with a tailored overview of your transactions and spending habits. Control over your money also means understanding the mechanisms behind how it is accessed and transferred.
Explaining the minefield that is PSD2
The first part of this answer actually starts way back in 2015 when the EU parliament passed the updated Payment Services Directive (PSD2). An update on the 2007 original PSD, it was designed to encompass all aspects of the diversified financial services industry.
This industry had made such significant developments since 2007 that it was deemed pertinent to offer new regulation and controls. This included tightening regulations on data security, to ensure that all customer data is held and processed in absolute safety.
Most importantly for you, it allowed companies other than banks to offer you improved financial services. This is because PSD2 ruled that the transactions you make on a daily basis with your debit or credit cards actually belong to you and not your bank. This means you are at liberty to share them with whom you wish.
Banks are now obligated to share access to the balance and transaction data of their customers – if the customer has given their authority. By linking your banks to our app you have permitted us to access your spending information.
Additionally, because PSD2 was rewritten in part to take into account an updated digital marketplace, it means that any data you authorise us to access is held every bit as securely as it is in your bank.
What does this mean for you using Oval Money?
Because you are now the rightful owner of your own transactions, it means that once you link your bank accounts to your oval app we can show you the transactions you make and compile them all in one easy to read place; providing you an aggregate view of your spending.
Furthermore, if you link multiple bank accounts to your Oval account then we are able to pull together all the transactions you make across them all and place all the information in one place.
For example, you may have bought your weekly coffees on an array of different credit cards, making it hard to keep track of what you’ve spent. However, because each account is linked to Oval we will be able to collate the information and display it on your transactions page, showing you that this week you in fact spent £100 on coffee.
This joined up approach to your spending will give you a clearer idea of where your money is going, and will allow us to offer you better tailored savings steps to suit your needs.
What if my bank is not supported?
If your bank is not supported it is because it’s not yet compliant with the PSD2 directive and is not yet correctly sharing your transactional data. Here are the banks we're currently supporting. We're constantly updating the list with new banks so check back regularly to see if yours has been added, or please fill in this form. The end of 2019 is the compliance deadline set by Parliament, after which all banks will theoretically be supported.
If your bank is not supported you can still use Oval Money and open your own digital savings wallet. You just need to provide your account or IBAN number and set up a Direct Debit Mandate, which links your bank account to your Oval Money savings wallet. With this feature you will be able to use the Facebook savings step that allows you to save a set amount each time you post on your wall, as well as set a weekly recurring deposit that will shift savings into your digital savings account.
What you will not be able to do, unfortunately, is set up tailored savings steps based on your transactional history – as we are not able to access your transactions.
Once you have authorised your DDM and set up your savings steps, your money will be collected from your bank account and put in your digital savings wallet. You are then free to choose whether you want to leave your savings there, invest them in the marketplace feature, or withdraw them and place them back in your bank account.
It is vital to fully understand the movements made by your money at all times. Understanding the mechanics behind what happens with your Oval Money account and why it works the way it does means you'll be in a better position to make better choices.