/retail banking

News and resources on retail banking, consumer finance and reinventing customer experience in finance.
Fintechs call for clarity over open banking reforms

Fintechs call for clarity over open banking reforms

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.”

Comments: (3)

David Gyori
David Gyori - BANKING REPORTS, LONDON - London 21 December, 2022, 17:31Be the first to give this comment the thumbs up 0 likes

Having API standards is a GREAT situation. The UK has this, impleented since the 1st of January 2018. Now, I think FOUR additional things are needed in the UK:
1. To oblige API standards on ALL banks in UK, not only the CMA 9.

2. To make banks open up ALL accounts under Open Banking.

3. To extend Open Banking to EMIs and Mobile Wallets and prepaid card issuers; they also must open THEIR "accounts" (Wallets, prepaid cards) up. With the same API standards.

4. TPPs must be secured in terms of Cybersecurity centrally, on an aggregate basis. To make SURE that all these APIs and TPPs and data and transactions are supersafe. 

Steven Hatton
Steven Hatton - Trusek Ltd - Amersham 23 December, 2022, 10:02Be the first to give this comment the thumbs up 0 likes

Greater adoption and innovation in Open Banking will not happen while there is a one size fits all Standard for complying.

A system and API Standard built for the 9 largest banks cannot possibly work for smaller financial institutions, maybe just starting up and building revenues & not yet profitable.

The requirements, both financial and technical, to become and maintain compliance are way too onerous, especially as there is little to no benefit to be gained.

John Davies
John Davies - Incept5 - London 23 December, 2022, 21:21Be the first to give this comment the thumbs up 0 likes What’s missing are the SLAs and consistency across API implementations. It’s all very well saying you have an API but if it’s down or responds “ack” when in fact the payment was declined or requires different fields from another bank then it makes it incredibly difficult for a PISP to provide a consistant reliable service to users.