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LONDON (Reuters) - Britain’s competition watchdog wants a new independent banking industry body to accelerate take-up of “open banking” apps to spawn new fintech companies and offer more choice to consumers.
FILE PHOTO: Canary Wharf stands in London, Britain December 27, 2020. REUTERS/Simon Dawson/File Photo
Open banking allows third-party internet based applications to compete with big banks by accessing a customer’s accounts to make payments, or find better deals on loans and other services and products.
The Competition and Markets Authority on Friday launched a public consultation until the end of March on strengthening how the financial sector operates open banking and ensures sufficient competition.
Consultation launched on the future governance of open banking
The CMA has launched a consultation on the future governance of Open Banking.
From:
5 March 2021
Open Banking is an initiative launched by the Competition and Markets Authority (CMA) in 2017 following its Retail Banking Market Investigation. It allows consumers and SMEs to share their bank account information securely with trusted intermediaries who can then use this information to help them save time and money by finding better products to suit their needs. In turn, open banking aims to place competitive pressure on the larger, established banks who have accounted for over 80% of the current account market for many years.
Date Time
Consultation launched on future governance of open banking
Open Banking is an initiative launched by the Competition and Markets Authority (CMA) in 2017 following its Retail Banking Market Investigation. It allows consumers and SMEs to share their bank account information securely with trusted intermediaries who can then use this information to help them save time and money by finding better products to suit their needs. In turn, open banking aims to place competitive pressure on the larger, established banks who have accounted for over 80% of the current account market for many years.
Since its establishment, Open Banking now has around 3 million active users and it is estimated that more than half of small and medium businesses use tools employing open banking functionality.
March 2, 2021 @ 11:32 pm By JD Alois
UK Finance has published a proposal for a “new service company” that will support the UK’s open banking infrastructure, according to a public statement. UK Finance is described as the collective voice for the banking and finance industry representing over 250 firms in the UK.
Last year, UK Finance suggested a model which would see the continuation of open banking functions moved into a new service company as the final stages of the
Competition and Market Authority’s (CMA) implementation roadmap. The publication,
Open Banking Implementation Entity (OBIE).”
The “Future Entity” is a yet-to-be-labeled company that may usher in this transition. According to the document the mission is as follows: