Bank connections
Open Banking explained: what you are agreeing to
A plain-English guide to account information, payment permissions and the checks to make when connecting a money app.
The useful answer
Open Banking can let a service use information from the bank accounts you authorise, or support a separately authorised payment. These are different services. Read which provider is involved, what information or action is requested and how you can manage the permission.
What to know
- A connection is permission for a defined service, not a request to share your bank password in chat.
- Account information and payment initiation are different permissions.
- Check the named provider and the consent screen before proceeding.
What account information helps with.
A money app can use permitted balances and transaction information to bring several selected accounts into a useful view. That can support spending explanations, recurring-payment reviews and budgeting conversations.
The connection does not create complete knowledge of your finances. An unconnected account, cash payment or future commitment can still be missing. Nor does a transaction tell the service whether you enjoyed a purchase or used a subscription.
Why a payment is a separate question.
The FCA describes account information services and payment initiation services separately. Permission to see information should not be confused with permission to make an unspecified payment. Read the particular action you are authorising.
For example, reviewing spending and approving a transfer have different consequences. Before an action, check the amount, destination and any conditions on the actual authorisation screen.
Read the screen like a short agreement.
Pause long enough to identify the service provider, selected accounts and requested access. If something looks broader than the task you expected, find an explanation before continuing. A polished interface is not a substitute for that check.
Bank authentication belongs in the authorised connection flow. Do not paste a password, PIN or verification code into a messaging conversation to get around a problem.
- Who is providing the account information or payment service?
- Which accounts have I selected?
- What information will the service receive, or what action will it perform?
- Where can I review or manage this connection later?
Know what can make the picture incomplete.
Transactions may be pending, arrive later or use merchant names that need explaining. A recent account balance is still a snapshot with a timestamp. A cash withdrawal shows money leaving the account, but not what you bought with the cash.
Use the connected view to ask better questions, and use your bank’s records to confirm an important transaction. Add context when a purchase, refund or transfer is being interpreted in a way you do not recognise.
How this fits Lodo.
Lodo’s account connection supports a money conversation in WhatsApp, with linked pages for the steps that need them. The information available depends on the supported accounts and permissions you choose.
For Lodo-specific questions, read the security and permissions page and contact the team if anything is unclear. For authorisation checks, use the FCA’s guidance and official register for the relevant named provider.
Sources & further reading
Examples are illustrative unless stated otherwise.
- FCA: account information and payment initiation services · Checked 7 September 2026
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