Open Banking Standards designed to further support a well-functioning, successful ecosystem
The Open Banking Implementation Entity (OBIE) is pleased to announce the publication of its Operational Guidelines and accompanying Checklist.
The Guidelines have been produced to provide clarity and recommendations to financial institutions (ASPSPs) on the regulatory requirements for a dedicated interface, as set out in PSD2, RTS, EBA Guidelines and FCA Approach documents. The Checklist consolidates the requirements of the FCA Checklist, and the recommendations of our Guidelines, and helps financial institutions identify where they are conforming to the latter.
Drafted in consultation with the industry and our many stakeholders over the past few months, the Guidelines and Checklist complement our API Specifications, Security Profile and Customer Experience Guidelines previously published. They clearly set out which aspects relate to the EBA Guidelines and FCA Approach, as well as detailing recommendations from the OBIE for best practice in supporting the design of effective and high-performing API interfaces. Additionally, financial institutions who adopt these Standards will be in a better position to show the necessary attributes and functionality to drive competition and innovation.
Trustee of the OBIE, Imran Gulamhuseinwala OBE, said:
“The Operational Guidelines and Checklist will ensure that the Open Banking Standard enables a well-functioning, successful ecosystem, where there are no barriers to the provision of products and services by TPPs. Adopted in conjunction with our Customer Experience Guidelines and Technical Standards, these go one step further to ensuring customers will ultimately enjoy enhanced and better experiences when using products and services powered by Open Banking.”
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Open Banking is a new, secure way for customers to take control of their financial data and share it with organisations other than their banks. Open Banking has the power to revolutionise the way we move, manage and make more of our money. For businesses, it is about making the management of cashflow and receiving payments cheaper and easier. Open Banking will make things simpler, faster and more convenient.
Open Banking follows the Competition and Markets Authority (CMA) investigation into the supply of personal current accounts (PCAs) and of banking services to small and medium-sized enterprises (SMEs).
Open Banking was created to enable innovation, transparency and competition in UK financial services. It is tasked with delivering the Application Programming Interfaces (APIs), data structures and security architectures that will enable developers to harness technology, making it easy and safe for individuals and SMEs to share the financial information held by their banks with third parties.
Open Banking will bring substantial benefits. It gives customers and SMEs greater market choice and greater control over their money and associated data, along with better and easier access to new financial services providers in a secure environment.
Notes to Editors:
1. 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.
2. 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.
3. 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.
4. 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.
5. 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: Barclays plc, Lloyds Banking Group plc, Santander, Danske, HSBC, RBS, Bank of Ireland, Nationwide and AIBG.