OBL submits two data collection frameworks
Open Banking Limited (OBL) has published two data collection frameworks on ‘Levelling up availability and performance’ and ‘Mitigating the risks of financial crime’.
This completes the first two deliverables under four themes that OBL was asked to consider by regulators under the umbrella Joint Regulatory Oversight Committee (JROC) in a policy paper in April 2023.
The JROC is made up of HM Treasury, the Competition and Markets Authority (CMA), the Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR).
The OBL will undertake the first data collection via voluntary submissions from third-party providers and ASPSPs. The submissions received under these frameworks will be shared with the PSR and the FCA as co-chairs of the JROC.
The findings will inform policy thinking, including considerations on potential changes to reporting requirements and if necessary, further consultations.
OBL was established in 2016 as the Open Banking Implementation Entity, or OBIE. Its initial remit was to create a shared API for the nine largest UK banks to allow customers to safely and securely share their data.
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The JROC considers collection of API data as a key step forward in developing an ecosystem where open banking API availability and performance is consistently high across all Account Servicing Payment Service Providers (ASPSPs).
The FCA said in a statement yesterday that the data will provide insight on how often outages happen and give OBL the opportunity to investigate whether further clarification or changes to the API standards are needed.
“The framework utilises a four phased approach to the delivery of the required data metrics over time, based on the depth and complexity of the requirement,” the regulator said.
“The objective is to support consumers and businesses access to high-performing and reliable services that enhance user experience and continue to build trust in the ecosystem.”
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The new framework is also hoped to improve financial crime reporting and increase awareness of the level of fraud occurring within open banking.
The FCA wants it to build on existing reporting requirements to collect data on the total open banking payments, and fraud, by volume and value on a monthly basis.
Insights from the framework are intended to inform the design of improved intervention tools, helping mitigate risks to ensure consumers are safe.
“The success of this project – and addressing the gaps as identified in the SWG report – is dependent upon OBL receiving high quality data from a wide range of firms, and we actively encourage firms to participate by submitting their data,” the regulator said.
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