On 15 February 2023, the FCA published the Joint Oversight Committee’s final report on the future development of open banking in the UK.
Last year HMRC stated that their adoption of open banking had saved the public purse over £500,000 in bank fees with more than £10.5bn tax collected to date through open banking payments, demonstrating the efficiencies this new capability can deliver. In January 2023 the Competition and Markets Authority (CMA) announced that the six largest banking providers had implemented all the requirements of the Open Banking Roadmap. In order to build on this success, the Government and regulators set up the Joint Regulatory Oversight Committee (Committee) to take forward the development of open banking beyond the CMA Order.
Henceforth, the co-chairs of the Committee, the FCA and the Payment System Regulator (PSR), convened a Strategic Working Group (SWG) to collect empirical evidence and collate views from industry and other stakeholders to input to the future development of open banking in the United Kingdom.
This report highlights the following key findings:
- It was evident throughout the SWG process that key stakeholders of the open banking ecosystem share a desire for open banking to work well for consumers and businesses, enabling them to take advantage of new ways to manage their finances and have more options for payments in a safe environment. However, despite this common desire, it is obvious that stakeholders have considerably different views when it comes to the detail of how to achieve this.
- Many stakeholders have differing visions for the future of open banking and varied views on the forward-looking agenda, including on the structure and funding of a future entity (or entities).
This report aims to reflect divergent views on key issues and identify areas of potential or emerging alignment.