NatWest Integrates Open Banking and Cybersecurity for Payments
NatWest has positioned itself as a fintech leader by combining Open Banking with the security foundations of a major UK bank. The institution faces the challenge of competing with fintech disruptors while maintaining trust, resilience, and regulatory rigour. James Hodgson, CEO of Payit and Tyl by NatWest, explained in an interview with FinTech Magazine how the bank uses its scale to deliver secure payment solutions in a complex threat environment.
Cyberattacks have become increasingly common. More than 40% of UK firms experienced a breach last year. Financial institutions must continuously learn and develop approaches to customer security. No institution wants to experience a security incident, as these events can damage consumer trust and lead to financial losses due to remediation costs.
Payit is always reviewing authentication processes, threat detection, and customer education. This is especially important when Open Banking remains an unknown concept for some users. The platform has been designed with security at its core. It aims to protect user privacy and reduce risk.
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Payit’s Account Information Services (AIS) solution, powered by open banking, enables businesses to securely access and verify customer financial information in real time. Access to timely, verified data can support earlier detection of suspicious activity. This allows businesses to make more informed decisions, resulting in a safer experience for both businesses and consumers.
Trust and transparency
Consumers often focus on convenience, speed, or price when choosing a payment provider. Security should remain a key consideration. Being backed by NatWest means customers benefit from the expertise, security, and governance that comes with one of the UK’s largest banks. It is vital for consumers to understand who is behind the service they are using and how their data is protected.
Greater transparency and education across the industry will help customers make more informed decisions. Some consumers worry that financial information provided for affordability checks is being passed elsewhere. In reality, open banking is built on a highly regulated framework that places customer consent, security, and transparency at its centre. Information is not shared and is used for a specific purpose that ultimately benefits the customer, supporting efficient decisions on payment plans and credit risk.
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Businesses should look beyond functionality and pricing when choosing a payments provider. Security should be at the core of the decision-making process. Any weakness in the payment ecosystem can negatively impact both the business and its customers. Robust security helps mitigate risk and protects brand reputation. Businesses should prioritize providers that comply with UK and European regulatory frameworks for payment processing and open banking, such as Payment Services Regulations and Strong Customer Authentication protocols.
While open banking offers a more secure alternative by enabling customers to authorise payments directly through their trusted banking environment, the industry is working together to prevent fraud. The UK’s Payments Services Regulations require operators to employ robust customer authentication practices for electronic payments. This collaborative approach helps create a more resilient payment ecosystem and supports greater confidence for both consumers and businesses.
Looking ahead, everyone has a role to play in maintaining security. From a consumer perspective, it is about being vigilant and choosing trustworthy providers. Consumers reported around 269,000 authorised push payment claims in a year. If something appears suspicious, it is worth taking the time to verify its legitimacy. Banks and businesses must continue investing in cybersecurity technologies, regularly reviewing their security frameworks, and ensuring they are prepared to respond quickly if incidents occur. Customer communication is equally important. Businesses must provide clear guidance about emerging threats and educate customers about common scams.
