UK watchdog reveals rules to fuel open banking
Open Banking, the implementation entity set up by the UK’s Competition and Markets Authority (CMA), has released its accounts and transaction information and payments initiation API specifications.
The payments initiation API will enable third parties to set up secure payments on behalf of customers and, once authorised by the customer, submit the payment for processing. The specification currently caters for the submission of a single, immediate, domestic payment from UK personal and business current accounts and processing can take place via any payment system operator.
Imran Gulamhuseinwala, trustee of the Open Banking Implementation Entity, says the specifications will be live from January next year, and will “provide the platform for developers from banks, fintechs and other organisations to build new web and mobile applications that will deliver a safer, more personalised and easier banking experience for consumers wishing to search, select and switch financial products in a secure environment”.
As reported in February, the CMA released its banking “final order” to give people greater control over their money and usher in an open banking revolution.
Open Banking was set up by the CMA in September 2016 to fulfil one of its remedies mandated following an investigation into UK retail banking.
Open Banking is a private body; its governance, composition and budget was determined by the CMA. It is funded by nine current account providers (Barclays, Lloyds, Santander, Danske, HSBC, RBS, Bank of Ireland, Nationwide and Allied Irish Bank) and overseen by the CMA, the Financial Conduct Authority (FCA) and Her Majesty’s Treasury.
The specifications are now available on www.openbanking.org.uk