The Competition and Markets Authority (CMA) has launched a consultation on the future governance of Open Banking in the UK.
Since its establishment in 2017, 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 the functionality.
With the implementation phase reaching maturity, the CMA is preparing to wind down the Open Banking Implementation Entity (OBIE), the body charged with overseeing the roll out of the technology.
Banking industry body UK Finance has submitted proposals that involve creating a new body, with a more broadly-based funding and governance model, to succeed OBIE. It is proposed that this body would take over OBIE’s functions, other than compliance monitoring, which will be handled separately.
As part of the consultation programme, the CMA is considering whether the successor organisation proposed by UK Finance will be truly independent and accountable and adequately funded.
The watchdog is also looking for feedback on transitional arrangement for the handover and compliance monitoring procedures.
The CMA’s consultation will run until 29 March 2021.