A group of fintechs including Monzo, Wise and Moneyhub have signed an open letter calling for urgent clarity on the future of open banking in the UK.
The letter was written by the Coalition for a Digital Economy and signed by trade association FDATA alongside 17 Fintechs.
it comes after UK authorities last week published an update on plans for a successor to the Open Banking Implementation Entity (OBIE), but provided little concrete deal on the governance of the future body or its funding mechanism. A strategic working group, chaired by Bryan Zhang, is set to report back on some of the issues in January.
The fintech coalition is concerned that “we have not received clear direction from the Joint Regulatory Oversight Committee (JROC) about how the 2017 CMA Order will continue to be enforced after the Open Banking Implementation Entity is dissolved.”
Jinesh Vohra, CEO at Sprive and one of the co-signatories, says: “It’s really important for businesses like Sprive, who are powered by Open Banking technology, to get assurances that the 2017 CMA Order will be continued to be enforced. It’s great to see the fintech community come together and speak with one voice as we all push for clarity.”
The group is calling for an acceleration of the process to define the future governance and enforcement of open banking in 2023.
Luke Kosky, fintech policy lead at Coadec, comments: “We’ve written this letter and convened a great group of fintech supporters to call on the Joint Regulatory Oversight Committee to speed up. When we look back on the last twelve months, it’s hard to point to concrete progress in our world-leading open banking regime. While an undeniable challenge, defining the future governance of open banking is a critical next step, but is taking too long.”
Scott Mowbray, co-founder and CCO at Snoop, adds: “The stepping stone approach to regulation needs to stop so we can move forward at pace, drive investment and innovation in the sector, take the benefits to millions more people, and support economic growth in the UK.”