CMA publishes approved Roadmap for the final stages of Open Banking implementation
Following the submission of the proposed Revised Roadmap for Open Banking, on 7th April, the CMA defined areas of the proposal which had been approved and those requiring minor amendments. Working collaboratively with the CMA, the OBIE Trustee subsequently addressed these modifications and submitted an updated version of the Roadmap accordingly. On 14th May, the CMA published the Final Approved Roadmap for Open Banking.
Commenting on the incorporation of the Roadmap into the Order, Trustee of the OBIE, Imran Gulamhuseinwala OBE said:
”Today the CMA published the Final Agreed Roadmap on Open Banking, laying out the steps required to take to finalise the implementation of Open Banking. Already an ecosystem of more than 200 third parties are delivering tangible products and services powered by Open Banking to more than one million users, and more of us are realising the benefits of Open Banking every day.
This Roadmap will deliver a seamless Open Banking experience for users and improve the functionality of Open Banking, particularly around payments. The timelines have been extended because of the current crisis, and also incorporate flexibility should the current restrictions continue for longer than anticipated. This approach allows the banks to prioritise their Covid-19 responses, while still ensuring that good progress towards completing the final stages of implementation can be achieved.”
Notes to Editors:
- Open Banking Ltd was set up by the Competition & Markets Authority (CMA) in September 2016 to fulfil one of the remedies mandated by the CMA following an investigation into UK retail banking.
- The CMA’s investigation into the retail banking market (whose findings were published in August 2016) concluded that older and larger banks do not compete hard enough for customers’ business and that Open Banking should deliver a new, secure option for customers to be able to compare the deal they are getting from their bank.
- Open Banking was created to enable innovation, transparency and competition to UK financial services. It is tasked with delivering the Application Programming Interfaces (APIs), data structures and security architectures that will make it easy and safe for customers to share their financial records by January 2018.
- The data provided by Open Banking will enable developers to harness technology that allows individuals and businesses to share their financial records held by their banks with third parties.
- Open Banking is a private body; its governance, composition and budget was determined by the CMA. It is funded by the UK’s nine largest current account providers and overseen by the CMA, the Financial Conduct Authority and Her Majesty’s Treasury.6. The 9 mandated institutions (referred to as the CMA9) are: AIG Group UK, trading as First Trust Bank in Northern Ireland, Bank of Ireland (UK), Barclays Bank plc, HSBC Group, Lloyds Banking Group plc, Nationwide Building Society, Northern Bank Limited, trading as DankseBank, The Royal Bank of Scotland Group plc (in Great Britain and Northern Ireland) and Santander.