The currently bank-funded OBIE stands between banks, third-party providers (TPPs) and the regulators. “The UK is the only country in Europe where the competition authority is directly overseeing the development of open banking. It is important for the entire ecosystem to understand what the next steps are for the open banking regime. Jan van Vonno, research director at Tink added: “At Tink we’re pleased with the consultation response by the UK’s CMA and the Treasury’s announcement. We will look forward to working with the new Joint Regulatory Oversight Committee over the course of this year.” “The announcement underlines government and regulators’ commitment to the future success of open banking, and the foundations for open finance and beyond. We now need to drive forward competition and adoption and realise the benefits of innovation for consumers and businesses across the UK. There has been significant collaboration in developing the infrastructure, standards and ecosystem that we have in place today. The industry responseĬommenting on the announcements, the OBIE’s trustee and chair, Charlotte Crosswell, said: “We welcome the announcements by the government and regulators and the endorsement it gives for the future of open banking to our thriving ecosystem. It has been estimated that by September 2023, 60 per cent of the UK population will be using open banking payments. The UK has been a global leader in this area and, as of January 2022, there were more than million users of services powered by open banking technology. In a market where larger, established banks have accounted for over 80% of the current account market for many years, open banking encourages account switching and drives down costs for small and medium businesses, boosting competition and innovation. Open banking enables consumers and businesses to share their bank and credit card transaction data securely with trusted third parties who are then able to provide them with applications and services which save them time and money. The CMA ordered the nine largest retail banks in Great Britain and Northern Ireland to pay for and set up an independent Open Banking Implementation Entity. Open banking was launched in the UK in 2017 as part of a package of remedies following the CMA’s market investigation into retail banking. We have today outlined the core principles that will ensure the new entity successfully picks up the reins.” A global leader “The CMA has carefully considered the appropriate future arrangements to boost open banking so that its significant benefits can be realised even more widely. have a system to effectively support the monitoring and enforcement of the Retail Banking Market Investigation Order 2017.Īndrea Coscelli, chief executive of the CMA, said: “Open banking has been a major success in the UK, bringing innovative new services to retail banking and benefiting consumers, businesses and the UK economy.be sustainable and adaptable to the future needs of the sector. effectively serve the interests of consumers and small and medium-sized businesses, including consideration for how these groups will be represented in the governance of the entity.be adequately resourced to carry out its functions through a more broadly-based and sustainable funding model.have a clear purpose articulated by the Board.have independent and accountable leadership, with a majority of independent directors on its Board.have effective regulatory oversight, with a new Joint Regulatory Oversight Committee to agree and implement the next steps led jointly by the FCA and PSR.The CMA’s recommendations are that the future entity should: The CMA, HM Treasury, the Financial Conduct Authority (FCA) and Payment Systems Regulator (PSR) have also published a joint statement outlining their plans for oversight of the future entity, building on the CMA’s recommendations, including the establishment of a Joint Regulatory Oversight Committee. The future entity would build on the significant progress made to date by the OBIE to encourage innovation and support competition in retail banking. These recommendations will be taken into consideration in the design of a future entity to succeed the Open Banking Implementation Entity (OBIE). The Competition and Markets Authority (CMA) has unveiled recommendations for the next steps in the future oversight of open banking.
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