UK-based bank NatWest has launched Enriched Transactions, a new transaction categorisation service. The new service is available to businesses such as Account Information Service Providers (AIPs) and lending providers, to integrate with their apps and digital platforms.

NatWest is one of the first UK banks to provide transaction categorisation as an extension to Open Banking APIs. Enriched Transactions’ features Businesses can leverage Enriched Transactions data to offer customers personalised insights, including tips on how to manage their budget or reduce their carbon footprint, helping them to obtain more control over their finances. Moreover, the service can also support enterprises with affordability checks, aiming to reduce the need for customers to upload payslips and help them minimise the risk of manual errors. Enriched Transactions automatically links customer transactions to categories aligned to Financial Conduct Authority (FCA) standards and includes details on whether spending is discretionary or committed.

The service can also offer businesses a three-level breakdown of those categories, as well as deductions at the source and the carbon score for each transaction. According to the company’s analysis of customer transactions, the service can categorise up to 89% of transaction types, with up to 98% of transactions being considered accurate. NatWest representatives stated that Enriched Transactions aims to offer businesses the ability to provide a more secure and efficient way of verifying their income when carrying out affordability checks. AISPs who want to use the service to categorise NatWest customers’ transactions can access it through an extension to the bank’s Accounts and Transactions API. Additionally, both AISPs and other businesses, such as lending providers, who want to leverage Enriched Transactions for users of all banks can access the service through Categorisation as Service API. In the upcoming months, NatWest plans to sign deals with AISPs and other enterprises who wish to use Enriched Transactions.

NatWest’s previous developments At the beginning of September 2023, NatWest selected Icon Solutions’ payment framework to modernise payments as it continues to align with the ISO 20022 payment data message standards. Through this collaboration, NatWest leverages a Single Euro Payments Area (SEPA) processing engine along with ready-made scheme packs. This comes as an addition to existing credit transfer and direct debit capabilities to offer customers more choices and establish the foundation for upcoming innovation. Moreover, in July 2023, NatWest CEO Alison Rose announced her decision to step down after she leaked information regarding Nigel Farage’s bank account closure.

The decision came in the context of increased scrutiny from the UK government regarding lenders that close bank accounts for political reasons. During the same period, the bank partnered with Perse and Absolar to help businesses reduce their energy use and carbon footprint. The collaboration aims to allow NatWest to minimise climate change while simultaneously helping small and medium-sized enterprises to benefit financially from reducing their carbon emissions. .