UK Finance sets out future model for Open Banking

UK Finance has published its proposals for a new service company which will support the UK’s Open Banking infrastructure.

Related topics:  Finance News
Rozi Jones
2nd March 2021
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"We know that it is vital that the industry works together to realise the opportunities for even greater innovation of a new generation of banking-related products and services."

Last June, UK Finance suggested a model which would see the continuation of Open Banking (OB) functions moved into a new service company as the final stages of the CMA's implementation roadmap come to an end this year.

Today, the proposals of how this service company will operate and the process for a smooth transition from the current Open Banking Implementation Entity (OBIE) have been published.

The proposed service takes into account the requirements made by the CMA of the UK’s largest nine banks, known as the CMA9. It also ensures there is room for flexibility to accommodate changes outside of OB and into other parts of finance and other industries, such as Open Finance and Smart Data.

UK Finance says the new service company will enable consumers, small businesses and corporates to benefit from a safe and reliable Open Data and payments market, as well as continuing to provide a platform for UK financial institutions to meet their regulatory obligations under the CMA Order and PSD2.

The service company will have a board comprised of an independent chair and a mix of independent, consumer and industry representatives. An advisory committee made up of member representatives and stakeholders, such as end-user representatives, industry bodies and regulators, will advise the board.

Jana Mackintosh, managing director of payments at UK Finance, said: “Open Banking is a prime example of the UK’s position as a global leader on financial innovation that benefits and protects the consumer.

"We know that it is vital that the industry works together to realise the opportunities for even greater innovation of a new generation of banking-related products and services.

"Our proposed model for the future service company will help facilitate these exciting developments for years to come.”

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