The UK has been one of the global leaders in Open Banking with 5m people already using services powered by Open Banking technology and estimates that by the end of 2023 60% of the UK population will be using Open Banking payments.

Open Banking allows much greater integration of banking with other financial holdings by sharing data.

In a joint statement today, the Treasury, the Competition and Markets Authority (CMA), the Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR) have agreed to work together to regulate Open Banking.

The FCA says that Open Banking has already led to greater competition and innovation in UK retail banking, “bringing real benefits to consumers and businesses.”

The Government and the regulators says they are committed to supporting the continued growth of Open Banking.

As part of the plan to help expand Open Banking, the bodies are working together on a framework for a future Open Banking regulator. A joint regulatory oversight committee led jointly by the FCA and the PSR will be set up to deliver this, giving the FCA and PSR leading roles in any new regulatory system.

Sheldon Mills, executive director, consumers and competition, at the FCA, will co-chair the committee.

Mr Mills said: “Open Banking is delivering real benefits for consumers and businesses. As co-chair of a new oversight committee, my focus will be on maintaining the progress it has so far achieved in encouraging innovation and competition.”

The Competition and Markets Authority (CMA) today published its recommendations for the future oversight and governance of Open Banking. 

The CMA’s recommendations will be taken into consideration in the design of a future entity to succeed the Open Banking Implementation Entity (OBIE).