FCA welcomes open banking report
The Financial Conduct Authority (FCA) has welcomed a report published today on the future of open banking development in the UK.
In March 2022, the Treasury, the FCA, the Competition and Markets Authority and the Payment Systems Regulator (PSR) announced a new committee to build on the success of open banking.
The committee convened a non-decision-making consultative forum, the Strategic Working Group (SWG), independently chaired by Bryan Zhang, which in turn conducted the research to produce today’s report.
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The 195-page report looks at gaps in the open banking system, reliability of the ecosystem, fraud risks, consumer protection standards and how the system might be expanded.
“UK open banking is at a crossroads,” said Zhang in the report. “Under the CMA Order the open banking ecosystem developed rapidly and has brought benefits to millions of consumers and businesses. Looking beyond the horizon, questions remain about its future direction, scalability and sustainability.”
The FCA said that the joint committee is determined to ensure that the benefits of open banking are fully realised, and that momentum is sustained.
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The committee aims to publicly set out its recommendations relating to the vision for open banking in the first quarter of 2023. It is expected to include a roadmap to deliver that vision.
“Open banking and its future continue to be a joint priority,” FCA executive director for consumers and competition Sheldon Mills and PSR managing director Chris Hemsley said in a joint statement.
“As the SWG’s work ends with the report, the committee’s work on open banking and engagement with industry and broader stakeholders continue. Fully realised, open banking and then open finance can bring further benefits to consumers and businesses and will help the UK become more competitive and innovative.”
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