This morning the Competition and Markets Authority (CMA) have published a consultation paper on the future governance of open banking. Responding to the news, Imran Gulamhuseinwala, Trustee, Open Banking Implementation Entity (OBIE) said:
“As the OBIE comes to the end of the implementation phase, we look forward to working with the CMA, who will set out the next steps and we encourage any external stakeholders to contribute to the consultation. A regular appraisal of the progress of open banking implementation is crucial to ensure a healthy ecosystem and competitive market.”
“Open banking has been critical to supporting the UK’s emerging and growing FinTech industry. We have pioneered the technology and as the Government said only last week, it is now taking the world by storm. The legislation that underpins open banking (PSD2) applied to all EU countries, yet three years on, the UK has more open banking providers than the whole of the EU combined. That’s a clear endorsement to how we have approached this opportunity.
“In 2018, the OBIE was tasked to help build the framework and the standards that would allow open banking to flourish. I am delighted that we now have more than three million regular users of open banking-enabled products, from money management tools to help consumers manage their personal finances better, to accountancy products that are helping small businesses find cheaper Covid loans and manage cashflow. Currently, we are seeing one million new users of open banking every six months and growing innovation in areas such as payments.
“As we look beyond to open finance and smart data, it is terrific to see a clear recommendation from the Kalifa Review supporting the concept of a similar mandated body to oversee its implementation. It will be beneficial to UK FinTech, but most importantly to consumers and small businesses.”
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The Open Banking Implementation Entity (OBIE) is the entity set up by the CMA in 2016 to deliver open banking. Its trading name is Open Banking Limited.
The OBIE is governed by the CMA and funded by the CMA 9 (Allied Irish Bank, Bank of Ireland, Barclays, Danske, HSBC, Lloyds Banking Group, Nationwide, Natwest Group and Santander). Its works with the CMA 9, as well as challenger banks, financial technology companies, third party providers and consumer groups. The OBIE’s role is to: