A future model for how the UK’s world-leading Open Banking (OB) functions can continue and progress once the current implementation phase ends early next year is set out today in a new report, Open Banking – Future State, by UK Finance.
The Competition and Markets Authority (CMA) final Open Banking implementation roadmap is due to end in early 2021, with the banking and finance industry then required to keep the OB function running. The new report sets out how this transition could be achieved and proposes that at the end of the current roadmap, the OB functions are maintained and moved into a service company that is governed and funded by the wider banking and finance industry in a fair and equitable way. The goal of the next phase is to maintain what has been achieved and extend further in the future.
To ensure a fair and representative governance structure across the industry, the report recommends that the service company Board should consist of a mix of independent and industry experts with customer experience. It also suggests that the monitoring of the original CMA Order on the CMA9 remains separate from the service company, to enable the service company to adapt to future mandates subject to the promotion of competition.
Eric Leenders, UK Finance Managing Director, Personal Finance, said “Open Banking is a significant technological and regulatory initiative which has huge potential for the future. It is vital that the Open Banking service community works together to ensure that the transition from the current roadmap to a more permanent plan is smooth, enabling the UK to maintain its world leading position in Open Banking as it develops.”
