NatWest has launched a new transaction categorisation service available to businesses and lending providers, to integrate with their apps and digital platforms.

In making the API-enabled service available to businesses, NatWest has become the first UK bank to offer transaction categorisation as an extension to open banking APIs.

With customers’ consent, businesses can use the service, called Enriched Transactions, to provide consumers with personalised insights. This could include tips on how to manage their budget, or reduce their carbon footprint, to help customers gain more control over their finances.

The new service can also support businesses with affordability checks when checking customers’ eligibility for a loan or a mortgage. This could reduce the need for customers to upload payslips, helping them save time and reducing the risk of manual error.

NatWest’s analysis of customer transactions has shown that the service can categorise up to 89% of transaction types, with up to 98% of transactions being categorised accurately.

Head of API commercialisation at NatWest, Kevin Dearing, added: “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.”

NatWest revealed that in the months ahead, it will be looking to sign deals with businesses including account information service providers (AISPs) who wish to use its Enriched Transactions service.

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