The Future State of Open Banking
UK Finance, in association with Accenture, have published a very good round up of the state of Open Banking. The main observations of the model that is being developed by OBIE are described below.
Download the full report here: The Future State of Open Banking
The core principles of the model are: i) there should be standardisation to drive end-user benefit, security, competition and innovation in the wider open banking
environment, ii) there should be industry ownership and governance transitioning from a CMA Special Purpose Vehicle to a market-led one, and, iii) Open Banking ecosystem participants should pay fairly and equitably for the assets and services of Open Banking.
There are 5 major parts to the proposed model:
- A monitoring function that reviews the performance of the CMA9’s ongoing compliance with the CMA Order. This will be separate from, and independent to the provision of Open Banking services.
- A set of membership groups / schemes acting as customers to receive services from Open Banking Limited. These groups could already exist and be supported by trade associations or other organisations like Pay.UK for Confirmation of Payee.
- Firms will pay ‘fair and equitably’ for their use of central services, this shall be proportional to usage and size of firm, including ASPSPs and TPPs.
- A ‘service company’ i.e. Open Banking Limited, that shall provide services to customers in line with their mandates. At a minimum, this shall include PSD2 and Open Banking services relating to a directory, Open API Standards development and a dispute management system.
- The re-use of the capabilities of OBL to meet other industry and regulatory mandates as they emerge. This could be market driven (‘Commercial APIs’) or borne from regulator / government direction (Open Finance / Smart Data).
One high-level model has been articulated that ensures the continued provision of Open Banking services. It supports the needs of TPPs and allows ASPSPs to meet
their regulatory obligations. It puts in place a monitoring function to assist the CMA, and it provides a foundation to be used for a wider set of ‘open’ initiatives. Further work is needed to close out outstanding design issues.
Open Banking Excellence – Open Banking around the world
Yesterday Helen Child of Open Banking Excellence held an extremely informative and engaging webinar with some good speakers from Google, Mastercard, Revolut and Accenture. If you don’t follow Helen’s webinars and Meetups you’re missing out – join up here.
I’ll do a review on Monday as there was some fascinating stuff discussed.
Emerging Payments Association Webinars and Training
The Emerging Payments Association has planned some really interesting webinars and training scheduled for the next couple of months.
The first is their training for payments 101 course. Planned for 29th and 30th June.
The second is their webinar on Financial Inclusion, sponsored by: Mastercard on the 7th July 2020 at 11am BST to explore how the payments industry has responded to the current crisis.
For sign up details for all these events go to: The EPA Sign Up page
Payment News Headlines
Today’s Guest News Headlines are from:
FS Club – Breaking News
This is no Black Swan (Part Two)
The Financial Services Club Blog
I was having a bit of ding-dong over my article about the coronavirus pandemic being perfectly predictable and not a black swan. There are many who believe the reaction to the pandemic is a black swan, as in the lockdown of Planet Earth. Hmmm … what reaction did we think …
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