A future model for how the UK’s world-leading open banking functions can continue and progress once the current implementation phase ends early next year is set out in a new report, Open Banking – Future State, by UK Finance in association with Accenture.
Open banking is a secure way to share financial information across multiple providers and is used in products such as account aggregation, where customers who have accounts across multiple banks can see all their account information in one place.
The new report sets out how this transition could be achieved and proposes that, at the end of the current roadmap, the open banking functions are maintained and moved into a service company that is governed and funded by the wider banking and finance industry in a fair and equitable way. The goal of the next phase is to maintain what has been achieved and extend further in the future.
“This report lays out the next steps for building on the highly successful foundations the UK has built – maintaining the country’s technical lead, supporting business models built on this infrastructure, whilst considering what might come next,” said Tom Graham, Managing Director in Accenture’s UK banking practice.
The banking and finance industry has invested an estimated £1.5 billion in infrastructure since the launch of open banking in 2016. The Competition and Markets Authority (CMA) final open banking implementation roadmap is due to end in early 2021, with the banking and finance industry then required to keep the open banking function running.
“Open banking is a significant technological and regulatory initiative which has huge potential for the future,” said Eric Leenders, Managing Director for the Personal Finance division of UK Finance.
“It is vital that the open banking service community works together to ensure that the transition from the current roadmap to a more permanent plan is smooth, enabling the UK to maintain its world-leading position in open banking as it develops.”