Five banks have announced that they will fail to be able to fully comply with ‘Open Banking’ rules by the CMA’s deadline of 13 January 2018. The five banks are HSBC, Barclays, RBS, Bank of Ireland and Santander’s private banking unit Carter Allen.
Under the changes, firms such as challenger or online banks will be granted access to customer bank account information such as transaction history so long as people give consent, meaning the banks can offer more personalised services to customers.
The Competition and Markets Authority (CMA) hope the changes, which come into force for nine big banks will encourage account switching and drive down costs.
Responding to the news, Christoph Riech, Chief Executive Officer Iwoca, said: “News that five banks are attempting to delay Open Banking on the eve of its introduction should leave no doubt that the big banks are running scared of competition. Clearly, ushering in the benefits of greater consumer choice is not a priority, and the CMA should remember that it is individuals and small businesses which stand to lose out from this irresponsible behaviour.”
“Open Banking will help remove many of the barriers to finance that UK small businesses face. Innovative finance providers, like Iwoca, will be able to use Open Banking data, which only the banks can currently access, to eliminate endless form filling and make fairer credit decisions – helping small businesses and unlocking faster economic growth.”