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NatWest to Offer Transaction Categorization to UK Clients as an Extension of Open Banking APIs

NatWest, one of the leading banks in the UK, has recently unveiled a new service called Enriched Transactions. This service is specifically designed for businesses, such as Account Information Service Providers (AISPs) and lending providers, who can integrate it with their own apps and digital platforms.

With the launch of Enriched Transactions, NatWest claims to be the first bank in the UK to offer transaction categorization as an extension to Open Banking APIs. This means that businesses can now use the API-enabled service to provide customers with personalized insights and recommendations. For instance, customers can receive tips on budget management and reducing their carbon footprint, which can help them have better control over their finances.

Moreover, Enriched Transactions can also support businesses by providing affordability checks. By using the enriched data, businesses can determine a customer’s eligibility for a loan or a mortgage, reducing the need for customers to upload payslips. This not only saves time but also minimizes the risk of manual errors.

The service works by automatically linking customer transactions to various categories that align with Financial Conduct Authority (FCA) standards. It also differentiates between discretionary and committed spending. Additionally, Enriched Transactions offers a three-level breakdown of categories, providing more detail than any other existing market offering. It also includes deductions at source and a carbon score for each transaction.

NatWest’s analysis of customer transactions has revealed that the service can categorize up to 89% of transaction types accurately, with up to 98% accuracy overall. This makes Enriched Transactions one of the most precise categorization tools available in the market.

Barry Connolly, Managing Director of Everyday Banking at NatWest Group, emphasized the bank’s commitment to helping customers thrive financially. He mentioned that the bank has already assisted over 3 million customers in improving their personal financial well-being by providing valuable insights. Connolly attributed this success to their focus on innovation and data-led experiences, such as Enriched Transactions. As a result, NatWest can increasingly add value for its customers.

To access Enriched Transactions, AISPs can use an extension provided by NatWest’s Accounts & Transactions API. Both AISPs and other businesses, including lending providers, can also use NatWest’s Categorization as a Service API to categorize transactions for customers across all banks.

NatWest has expressed its intention to forge partnerships with AISPs and other businesses interested in leveraging Enriched Transactions in the coming months. This move demonstrates the bank’s commitment to promoting financial well-being and enhancing customer experiences through innovative solutions.

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