UK Finance proposes open banking improvements
UK Finance has called for the creation of payment standards and a voluntary framework for open banking providers.
The banking trade body said there are now 2.5 million open banking payments per month compared with 32,000 during the whole of 2018, but the group has recommended a series of improvements.
It said there is a case for creating a voluntary framework for open banking payment providers to avoid too much fragmentation in the market.
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“Roles, responsibilities and liabilities of different market participants could be described in such a framework,” UK Finance said.
UK Finance has also suggested setting up a technical group to oversee the governance of open banking payment standards but it said this would have to be done once the Competition and Markets Authority has agreed on a successor to the Open Banking Implementation Entity.
“The shared vision for open banking payments is to offer customers and merchants a greater choice in how payments are made and received,” Jana Mackintosh, managing director of payments and innovation at UK Finance, said.
“Open banking has an exciting future, and the payments industry is working together to consider how the market could be enhanced for customers and merchants.”
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