Open Banking was established in 2017 following an investigation into retail banking conducted by the CMA. Nine of the UK’s largest retail banking providers were asked to open up customer data and to do this, were required to establish an independent Open Banking Implementation Entity (OBIE).
The requirements were fully implemented at Barclays, HSBC, Lloyds, Nationwide, Natwest and Santander.
Allied Irish Bank, Bank of Ireland and Danske are yet to introduce all the standards of the Open Banking roadmap. The CMA said it will support the OBIE to ensure this is done in a timely way.
Open Banking allows consumers and businesses to share their transaction data with third parties. There are now more than six million users of Open Banking in the UK.
The six banks which have fully implemented the requirements will need to continue allowing customers to access their financial data and benefit from Open Banking. They must also promote the service to encourage industry adoption.
The OBIE and the CMA will work with the government and other regulators to expand on the benefits of Open Banking as well as set out recommendations in Q1.
CMA: “Open Banking moves into a new phase”
Sarah Cardell, chief executive of the CMA, said: “It is fantastic to see how many consumers have benefited from Open Banking since the CMA’s Order was issued in 2017 – which has transformed the way millions of people manage their money.
“Today’s update is an important milestone. The largest banking providers in the UK have completed the roadmap, and so Open Banking moves into a new phase.”
She added: “We will continue to ensure the standard is maintained and that providers are held to their obligations under the CMA’s Order, including making sure those remaining banks reach the same data sharing standard.
“The OBIE’s work is vital to the ongoing success of Open Banking and we look forward to continuing to work closely with the Financial Conduct Authority, Payment Systems Regulator and HM Treasury to help deliver the future arrangements for Open Banking.”
