The OBIE Highlights – June 2021

Download open banking highlights – June 2021

  • 315 regulated providers made up of 228 third party providers and 85 account providers, with 113 regulated entities that have at least one proposition live with customers

Commenting on the June highlights, OBIE’s Implementation Trustee Imran Gulamhuseinwala OBE said:
“Open banking is a public good, so it is gratifying to see the volume and variety of emerging use cases, such as 13,000 Parent Teacher Associations in the UK starting to leverage (and benefit) from the technology. Meanwhile, US President Joe Biden has issued an executive order calling on the Consumer Financial Protection Bureau to issue rules allowing customers to download their banking data and take it with them, promoting an overhaul of consumer data guidelines. By giving consumers full control of their financial data, and making it easier for them to switch lenders, the US looks set to follow the UK lead in creating a competitive environment for FinTechs and proponents of open banking to prosper.”

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Powered by open banking (from LinkedIn)

PTA’s leverage open banking payments to reduce fees

Parentkind, the UK’s largest network of parent teacher associations (PTAs), has signed a three-year deal with UK fintech Agitate to use its open banking-powered BOPP solution. PTAs raise more than £120 million annually and with the decline in cash, see this as a way to reduce card processing and platform fees. Using BOPP will enable Parentkind’s 13,000 members to display a QR code on a school notice board or add a secure Paylink to any text or social media post to enable swift and secure payment direct from a donor’s bank account.

Visa inks Tink acquisition deal

Visa has signed a definitive agreement to buy Tink. Visa will pay a total financial consideration of 1.8 billion Euros, inclusive of cash and retention incentives, to acquire the European open banking platform, which is integrated with more than 3,400 banks and financial institutions. Tink will retain its brand and current management team, and its headquarters will remain in Stockholm, Sweden.

The UK and Nordics lead open banking in Europe

A new report by Mastercard, ‘Open Banking Readiness Index: The Future of Open Banking in Europe’ takes an in-depth look into how prepared European countries are to embrace the open banking ecosystem. The report also highlights the key differences in how countries are approaching open banking. The UK is building a world-leading open banking digital ecosystem with its own framework and API standard, while the pan-Nordic collaborative models and P27 initiative aid the region’s open banking readiness.

Ecommerce merchants see open banking as a route to improve shopper experience

New research from Truelayer and YouGov points to online shopper behaviour being increasingly influenced by what payment options are offered. Having access to various online payment methods was cited by 48% of consumers as the reason for choosing a particular retailer, while 60% of shoppers have abandoned an online basket due to worries around lack of payments security. Yet two-thirds (63%) of those polled said they would be comfortable paying by open banking. 74% of merchants plan to offer instant bank payments, powered by open banking, as part of their long-term customer service strategy.

Clearscore raises $200 million to ease consumer access to credit through open banking

UK-based free credit scoring service and marketplace ClearScore has secured a $200 million investment from US fund Invus Opportunities. The fintech enables consumers across the UK, Australia, and South Africa, to check their credit score for free or share their bank account data via open banking to be matched with lending products from over 90 partners. The firm says it will use the funding to expand its team, product suite, and customer base globally.

Key Highlights

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About Us

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:

  • Enforce the obligations on the CMA 9 under the CMA Order
  • Design the specifications for the Application Programme Interfaces (APIs) that banks and building societies use to securely provide open banking
  • Support regulated third party providers and banks and building societies to use the OBIE’s Open Banking Standards
  • Create security and messaging standards
  • Manage the OBIE’s open banking Directory which allows regulated participants like banks, building societies and third-party providers to enrol in open banking
  • Produce guidelines for participants in the open banking ecosystem
  • Set out the process for managing disputes and complaints