NatWest, a digital-focused relationship bank championing potential for the 19 million individuals, families, and businesses they serve in the UK and Ireland, has unveiled their innovative service called Enriched Transactions.
By introducing Enriched Transactions, NatWest aims to empower businesses, especially Account Information Service Providers (AISPs) and lending providers, enhancing their integration capabilities with apps and digital platforms. This move ensures NatWest becomes the pioneer UK bank extending transaction categorisation via Open Banking APIs.
NatWest Group is dedicated to fostering relationships in the digital age, striving to eliminate challenges and fortify financial confidence. They prioritise the success of the 19 million clientele spread across communities in the UK and Ireland. Moreover, with the conception of the Bank of APIs, NatWest has accentuated the importance of Open Banking, allowing the creation of a powerful API ecosystem. This not only reinforces existing customer channels but also introduces services into novel digital realms, presenting innovative payment and data solutions.
The Enriched Transactions service functions by automatically associating customer transactions with categories in line with Financial Conduct Authority (FCA) standards. It provides details on discretionary or committed spending and offers businesses a three-tier breakdown of these categories, also highlighting deductions and each transaction’s carbon score.
This service stands out in the market with its precision. Analysis by NatWest indicates that it can sort up to 89% of transaction types, boasting an accuracy rate of up to 98%. The service simplifies procedures like eligibility checks for loans or mortgages, potentially eliminating the need for customers to submit payslips, thus saving time and minimising manual error risks.
AISPs interested in using Enriched Transactions can access it via an extension to NatWest’s Accounts & Transactions API. Moreover, both AISPs and other businesses can use NatWest’s Categorisation as a Service API. In upcoming months, NatWest plans to collaborate with AISPs and other businesses to expand the usage of Enriched Transactions. However, charges and eligibility requirements apply to third parties using this service. Customers of NatWest, Royal Bank of Scotland or Ulster Bank (Northern Ireland) are exempt from fees when consenting to transaction categorisation.
NatWest Managing Director Everyday Banking Barry Connolly remarked, “Helping our customers thrive financially today and tomorrow with simple and easy everyday banking is central to our strategy. We have helped over 3m customers by providing insights on how to improve their personal financial wellbeing, better manage their budget and build regular savings habits. This is possible due to our focus on innovation and data led experiences like Enriched Transactions, where our high accuracy increases the ways we can help add value for our customers.”
Head of API Commercialisation at NatWest Group Kevin Dearing commented, “Enriched Transactions marks the start of an exciting new relationship between banks, customers and businesses that’s underpinned by customer consent, trust and security.
“The new service makes it easier for a wide range of businesses – from merchants to lending providers – to offer customers a more secure and efficient way of verifying their income when carrying out affordability checks. It will also enable businesses to provide NatWest customers with greater insights on their day-to-day spending and their carbon footprint.”
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