Open Banking for Insolvency: A 2025 Practitioner’s Guide

Managing insolvency cases in 2025 isn’t just about legal expertise; it’s also about data. And one of the biggest bottlenecks insolvency practitioners face today? Accessing a debtor’s complete and up-to-date financial information.

From chasing incomplete bank statements to manually verifying transactions, traditional data collection slows down case progress, increases costs, and introduces risk. But Open Banking is quietly changing that.

By securely connecting to clients’ bank accounts (with their consent), Open Banking allows insolvency firms to pull verified, real-time transaction data across multiple banks, all in minutes. This guide explains how Open Banking works for insolvency, what use cases it unlocks, and how firms can adopt it with minimal disruption.

Why Bank Data Collection is a Pain Point in Insolvency Cases

Insolvency practitioners often spend more time chasing documents than resolving cases. Traditional methods like requesting PDF bank statements or waiting for paper copies introduce multiple challenges:

• Delays in Client Response
  Clients may take days (or weeks) to share statements, especially if they use multiple accounts or are already overwhelmed by the process.
• Missing or Edited Data
  PDFs can be redacted, incomplete, or even tampered with, making them unreliable for compliance and court submissions.
• Manual Review Overload
  Manually scanning transactions to categorise income, expenses, and asset transfers takes valuable time from your team.
• Repeated Follow-Ups
  If anything’s missing or unclear, you have to go back to the client again, creating more admin and delaying closure.

These issues don’t just affect workflow; they directly impact your ability to verify claims, detect fraud, and stay compliant. For firms handling high volumes of cases, they’re a serious operational burden.

📚 5 Platforms for Fast & Accurate Data for Insolvency

What is Open Banking and How Does it Help Insolvency Workflows?

Open Banking is a UK-regulated framework that lets clients securely share their financial data, like bank transactions and account balances, with third-party tools via APIs. Instead of emailing PDFs or logging into portals, clients simply approve access through their banking app. The data is pulled directly from the source and is read-only, so nothing can be changed or manipulated.

For insolvency practitioners, this means no more waiting for statements, chasing missing pages, or second-guessing the accuracy of documents. With consent, you get immediate access to:

• Real-time transaction history across all linked accounts
• Clean, categorised data ready for analysis or export
• Time-stamped audit trails to support due diligence
• Full FCA compliance built into the process

It’s faster, safer, and gives your team more control over how financial data is collected and used during proceedings.

Use Cases of Open Banking in Insolvency Practices

Open Banking isn’t just a faster way to get bank statements; it’s a toolkit for solving some of the most common pain points in insolvency work. Here’s how practitioners are already using it in the field:

1. Accelerated Statement Collection

Instead of waiting days for PDFs or login details, you can access 12–24 months of transaction data across multiple UK banks in under two minutes, with full client consent. This speeds up the intake process and helps you move cases forward faster.

2. Proof of Income and Expense Mapping

Open Banking data includes transaction descriptions, categories, and amounts, making it easier to identify salary deposits, recurring bills, or irregular spending. You can quickly build Statements of Affairs (SOAs) or validate debtor disclosures with hard data, not assumptions.

3. Asset Tracing and Undisclosed Accounts

If a client has multiple accounts or undeclared income streams, Open Banking can reveal linked accounts, cross-bank transfers, or hidden balances, helping you uncover omitted assets or inconsistencies early in the case.

4. Real-Time Affordability Check

By analysing live income and expenditure data, you can assess repayment capacity or explore Individual Voluntary Arrangements (IVAs) with more confidence. It also supports more accurate creditor proposals and justifications.

5. Client Onboarding & AML Checks

Open Banking tools often integrate with ID verification and AML screening, allowing you to onboard clients with fewer steps. Instead of requesting utility bills or pay slips, you get verified identity data and transactional history in one session.

Compliance and Consent: Is It FCA-Safe?

Yes, Open Banking is fully compliant with UK financial regulations. It operates under the Payment Services Regulations 2017, overseen by the Financial Conduct Authority (FCA). Every provider accessing bank data must be either directly authorised by the FCA or work with an authorised provider.

Here’s how Open Banking ensures regulatory safety for insolvency practitioners:

• Explicit Client Consent
  Data access only happens after the client authorises it through their bank’s secure portal. No credentials are shared, and clients remain in control at all times.
• Read-Only Access
  Practitioners or their data partners cannot move money, edit transactions, or interact with the client’s bank account. The API simply reads and exports data.
• End-to-End Encryption
  All data is transferred via secure, encrypted channels, ensuring information is protected from tampering or interception.
• Time-Stamped Audit Trails
  Every data request and consent flow is logged, providing proof for compliance checks or court submissions.
• FCA Oversight
  The ecosystem is monitored, and unauthorised tools are blocked from accessing data. This protects both firms and clients from risk.

By adopting FCA-compliant Open Banking tools, you’re not only making your data collection faster, but you’re also safeguarding your process and reputation.

How Finexer Supports Insolvency Professionals

Finexer provides Open Banking APIs designed for professionals who need fast, compliant access to client bank data, including insolvency practitioners working against court deadlines or creditor timelines.

Live Access Across 99% of UK Banks

With client consent, you can access recent transaction data from nearly all major UK banks in real time, without relying on PDFs or delayed uploads.

Categorised Financial Data

Incoming and outgoing transactions are automatically labelled (e.g. salary, rent, utilities, discretionary spending), making it easier to build Statements of Affairs or identify risk signals.

Exportable Formats and Developer-Ready API

Download data in CSV or Excel formats, or connect directly to your internal tools using Finexer’s clean, well-documented API endpoints.

Consent Logs and Audit Trails

Every data request is backed by a time-stamped audit trail and client-approved consent record, supporting your compliance and reporting requirements.

Flexible, Usage-Based Pricing

No monthly minimums or fixed-term contracts. You only pay when you need access, making it ideal for firms with unpredictable case volumes.

UK-Based Support

Finexer offers responsive local support from a team that understands insolvency workflows, giving you peace of mind when you’re working under pressure.