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News > Fintech

Open banking project expanded

Jordan Williams | 07:28 Wednesday 29th November 2017

The Open Banking Implementation Entity (OBIE) has announced new enhancements to the open banking project.

OBIE – set up by the Competition & Markets Authority – has been instructed by the nine largest current account providers in Great Britain and Northern Ireland (CMA9) and the Treasury to create open banking standards for all payment account types covered by the EU's second Payments Services Directive (PSD2).

This means that customers using credit cards, prepaid cards and e-wallets will also be able to access open banking services.

The Competition & Markets Authority (CMA) has also announced amendments to ensure that the project provides maximum benefits for retail customers and SMEs.

The enhancements will build on the core requirements of the CMA order, which are expected to come into force in January 2018.

The chancellor of the exchequer Philip Hammond referenced the project in last week's Autumn Budget.

Imran Gulamhuseinwala, trustee of the OBIE, said: “This is a truly innovative project and the UK is leading the world in opening up the banking system to new services and, ultimately, reshaping it around the customer.

“Key to any innovation is the process of discovery and it became clear through the second half of 2017 that there is much more the OBIE could do to drive adoption of open banking and create a richer environment for new services.

“These enhancements should give even greater confidence to the fintech community to seize the opportunity to participate fully in the financial services ecosystem.

“They will create standards for future dated, recurring and international payments as well as all the payment and product types covered by PSD2.”

The open banking project was created in 2016 by the CMA to bring competition and innovation to the personal and small business current account markets.

Adam Land, senior director at the CMA, added: “There is huge interest globally in the way that UK regulators have worked together with the banking industry, the fintech sector, consumer groups and others to drive this project forward at pace.

“This plan, which the CMA has approved today, is both deliverable and bold in scope.”

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