The Open Banking Implementation Entity (OBIE) is pleased that the Competition and Markets Authority (CMA) has announced the completion of the Roadmap. This marks a pivotal milestone that has benefited businesses, consumers and the wider UK fintech sector. As it prepares to transition to the future entity, the OBIE now looks to the Joint Regulatory Oversight Committee (JROC) and their upcoming recommendations in relation to the design of the future entity and the vision for open banking.
Following a requirement by the CMA in 2016 to deliver open banking, the OBIE was created by the nine largest current account providers in Great Britain and Northern Ireland (the CMA9). Since then, the OBIE has played a key role in the successful implementation of open banking in the UK.
Open banking has transformed the payments and data landscape, enabling customers and small businesses to leverage their current account information securely with third party providers, who use that data to tailor their apps and services to peoples’ specific financial circumstances.
The UK’s approach in mandating and enforcing a single standard has allowed UK fintechs to overcome challenges much faster than other European and competitor jurisdictions. In this time, the UK has created a thriving and collaborative ecosystem. There are now 246 regulated third-party providers in the UK compared to 338 in the whole European Economic Areai.
Against the backdrop of a challenging economic environment – the COVID-19 pandemic and, more recently, cost of living rises – open banking has improved consumers and businesses financial resilience. The ecosystem has allowed for consumers and small businesses to reap these technological advances at a time of need.
The number of users has shown strong growth over the last five years, and there are now:
Open banking has a continuing role in promoting greater competition and innovation for the benefit of consumers, businesses and the wider economy, as well as maintaining the UK’s international competitiveness and leadership in the field. This will enable new services that consumers and businesses value and trust, and which support sustainable economic growth. JROC is determined to ensure that the benefits of open banking are fully realised and momentum is sustained.
Charlotte Crosswell OBE, Chair and Trustee of OBIE, said: “The completion of the CMA’s Roadmap is the result of a concerted effort and partnership between the OBIE, CMA9, the wider ecosystem, regulators and government. Through this close collaboration, the tangible benefits of open banking-powered products are being delivered to over 6.5 million users.
“As we look back over the last five years, our thriving ecosystem should be immensely proud of the financial innovation and benefits they have delivered to consumers and businesses. Not only is this helping millions of people across the UK with their day-to day financial management, but crucially, their ability to navigate the impact of the pandemic, rising cost of living and other unexpected financial shocks.”
Sarah Cardell, Chief Executive of the CMA, said: “This update is an important milestone. The majority of banks have completed the Roadmap, and so open banking moves into a new phase.
“The OBIE’s work is vital to the ongoing success of open banking, and we look forward to continuing to work closely with the FCA, PSR and HM Treasury to help deliver the future arrangements for open banking.”
Henk Van Hulle, Chief Executive Officer of OBIE, said: “Over the past five years, open banking has evolved from concept to an everyday tool used by over 6.5 million people. Not only has it helped consumers improve the way they manage, move and make the most of their money, but open banking has also supported increased productivity and cost savings for businesses.
“As we mark this milestone, it is important to note there is still more to do to build on these strong foundations so we can continue to build the best environment for open banking to reach its full potential.”
Notes to editors:
OBIE spokespeople are available on request.
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