The Financial Conduct Authority will seek the advice of with companies and different stakeholders over the subsequent six months to resolve on “the easiest way ahead” to arrange an open banking requirements physique.
The City regulator says the physique, at present referred to as the Future Entity, will assist the rollout of variable recurring funds for some forms of family payments “later this yr”.
The watchdog says it has made “important progress” in talks with the industry over the past six months on the duties of the new physique.
It provides: “We might be participating with industry and different stakeholders to resolve upon the easiest way ahead to standing up the Future Entity, serving to to create a extra thriving and progressive open banking industry.”
The FCA has referred to as opening banking, first launched in 2018, “a UK success story,” which has over 11.7 million lively customers who make 22.1 million funds a month.
The regulator provides: “The open banking requirements supplied by the Future Entity are anticipated to be utilized by industrial open banking schemes selling innovation within the sector.
“The Future Entity is predicted to monitor the standard and consistency of applied sciences utilized in open banking. This ought to assist inform our supervision of companies.”
The new physique’s tasks will embrace:
Setting widespread requirements that can present a minimal degree of service and interoperability throughout open banking companies
Monitoring API efficiency
Ensuring adherence to related requirements — together with offering data to the FCA
Providing listing and certification companies
Working with multilateral settlement homeowners and operators to develop requirements that allow industrial schemes
FCA director of funds and digital finance Matthew Long says: “This is the subsequent step in realising our imaginative and prescient of a extra progressive, secure and aggressive funds sector, which embraces technological change to higher serve individuals and companies.
“We count on the Future Entity to play a central function within the subsequent part of open banking, setting and monitoring the requirements that underpin the industry.
“However, we can’t realise this future alone. Our engagement and assist from industry continues to play a significant function in the way forward for open banking, as we construct on the momentum we’ve seen prior to now six months.”
