UK Finance plans future revamp for Open Banking body
The UK’s Open Banking Implementation Entity (OBIE) is evolving into a new organisation as the rollout of open banking continues apace.
OBIE is transitioning into a “new service company which will support the UK’s world-leading open banking infrastructure”.
A report penned by UK Finance outlines how OBIE has been “at the centre” of the development of the technology.
Set up in 2016, OBIE has directed the development of open banking standards and technical services.
While direction and governance sits with OBIE, the Competition and Markets Authority (CMA) controls enforcement.
UK Finance says considerations must be made on how OBIE could support the UK’s largest nine banks (the CMA9).
It adds that future changes to open finance and smart data, application programming interface (API) access schemes, and future payments reviews from HM Treasury all need to be met.
UK Finance originally announced its intentions to evolve OBIE in June 2020, part of its “Open Banking Futures Phase 1”.
Now the body is entering into “Phase 2”. It states a replacement entity for OBIE must enable UK consumers, small businesses and corporates to benefit from a “highly efficient, safe and reliable open data market.”
The new entity will provide a set of around 30 service capabilities, reviewed regularly as the transition occurs.
It will feature a board of directors and an executive team, with independent chairs and non-executive directors. An advisory committee with member representatives is also in the works.
UK Finance says there should be a “strong industry presence” at all stages. It promises change requirements will go through a “rigorous refinement process”.
The group is finalising appointments to a new board and a revision of existing members. A new funding structure is also in the early stages of development. UK Finance estimates the process will continue until Q1 2022.
“Open Banking is a prime example of the UK’s position as a global leader on financial innovation that benefits and protects the consumer,” says Jana Mackintosh, managing director of payments at UK Finance.
“We know that it is vital that the industry works together to realise the opportunities for even greater innovation of a new generation of banking-related products and services.
“Our proposed model for the future service company will help facilitate these exciting developments for years to come.”