NatWest has launched a new Open Banking service designed to give customers personalised insights into their spending and advice on how to manage their budget.

Enriched Transactions will be available to business and lending providers to integrate with their apps and digital platforms.

NatWest claims it is the first UK bank to offer transaction categorisation as an extension to open banking APIs.

NatWest said that the service, which requires customer consent, could help support businesses with tasks such as affordability checks. The service reduces the need for customers to upload documents which could save them time and lower the risk of manual error, added the bank.

NatWest says that the service works by automatically linking customer transactions to categories aligned to Financial Conduct Authority (FCA) standards. It's analysis of customer transactions has shown that the service can categorise up to 89 per cent of transaction types, with up to 98 per cent of transactions being categorised accurately.

“Enriched Transactions marks the start of an exciting new relationship between banks, customers and businesses that’s underpinned by customer consent, trust and security,” said Kevin Dearing, head of API commercialisation at NatWest Group. “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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