The Open Banking Implementation Entity (OBIE) welcomes the announcement from the Competition and Markets Authority (CMA) that provides additional clarity regarding the implementation timetable for Variable Recurring Payments (VRPs) for Sweeping [here].
Sweeping is the automatic transfer of money between a customer’s own accounts, such as moving excess funds into a separate savings account or using them to repay a loan or overdraft account.
VRPs are a new way to make ongoing payments. You can think of them like ‘smart direct debits’, which are set up with a provider, but allow the customer to choose when they end and the payment limits (for example no more than £15 per month). Customers will be able to see what permissions they have granted in their banking app. This is all about putting customers, not companies, in control of their money.
The intention of this revised timetable is to ensure that open banking payment providers can start to pilot new propositions early in 2022, whilst ensuring that all CMA9 banks have an appropriate amount of time to successfully implement VRPs for sweeping by mid-2022.
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:
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