Competition regulator sells open banking unit
It is estimated that by September 2023, 60% of the UK population will use open banking payments
Competition and Markets Authority relinquishes control of Open Banking implementing entity following bullying scandal, with question mark over its future
The Competition and Markets Authority (CMA) handed over management of its open banking unit following a bullying scandal.
The Financial Conduct Authority and payment systems regulator will now oversee the transition of the Open Banking Implementation Entity (OBIE) to a new permanent body and regulate open banking technology for the time being.
Open banking allows banks, trusted third parties and technical service providers to access consumer financial data (when the consumer consents) to provide more ways for consumers to spend, invest and borrow and enable companies to provide services to them.
>See also: British banks prioritize open banking — Yapily
It is estimated that by September 2023, 60% of the UK population will use open banking payments.
The CMA was tasked with overseeing the open banking unit in 2016 to encourage banks to share customer information to encourage account switching and stimulate competition.
However, the unit was engulfed in a bullying scandal that led to the resignation of its president in October. The independent report revealed a “toxic culture” of bullying and bullying within the organization and claimed the CMA did little to address issues when they became apparent.
> Read also: Open banking will continue its exponential rise in the United Kingdom in 2022
The new regulatory committee will work with OBIE, but the future of the unit remains uncertain as watchdogs and the Treasury consider creating a new entity.
The CMA said: “The recommendations will be considered in the design of a future entity to succeed the Open Banking Implementing Entity. The future entity would build on the significant progress made to date by OBIE to encourage innovation and support competition in retail banking.
Andrea Coscelli, Chief Executive of CMA, added: “CMA has carefully considered appropriate future arrangements to stimulate open banking so that its significant benefits can be realized even more widely. We have defined the fundamental principles that will allow the new entity to take the reins successfully.
The Open Banking Initiative: One Year On — What Has Changed and What Can We Expect? – Open Banking — happy birthday! But did you have the impact that many thought you would have? No, but you will soon be walking and even running
UK banks prioritize open banking — Yapily — Research by open banking fintech Yapily found that UK banks have continued to invest in open banking infrastructure as user adoption increases