CMA

The OBIE marks completion of CMA Open Banking Roadmap on fifth anniversary

13 January 2023
press release
  • Completion of the Roadmap coincides with the fifth anniversary of the Second Payment Services Directive (PSD2), which made open banking a regulatory requirement in the UK. 
  • There are now over 6.5 million active users of open banking-enabled products in the UK, providing UK consumers and SMEs with innovative products to help them better manage and make more of their money.  
  • Whilst significant progress has been made, there is still more to do to optimise and deliver the full benefits of open banking. As the UK looks to future possibilities that open banking holds, it is vital that momentum is not lost.  

The Open Banking Implementation Entity (OBIE) is pleased that the Competition and Markets Authority (CMA) has announced the completion of the Roadmap. This marks a pivotal milestone that has benefited businesses, consumers and the wider UK fintech sector. As it prepares to transition to the future entity, the OBIE now looks to the Joint Regulatory Oversight Committee (JROC) and their upcoming recommendations in relation to the design of the future entity and the vision for open banking. 

Following a requirement by the CMA in 2016 to deliver open banking, the OBIE was created by the nine largest current account providers in Great Britain and Northern Ireland (the CMA9). Since then, the OBIE has played a key role in the successful implementation of open banking in the UK. 

Open banking has transformed the payments and data landscape, enabling customers and small businesses to leverage their current account information securely with third party providers, who use that data to tailor their apps and services to peoples’ specific financial circumstances. 

The UK’s approach in mandating and enforcing a single standard has allowed UK fintechs to overcome challenges much faster than other European and competitor jurisdictions. In this time, the UK has created a thriving and collaborative ecosystem. There are now 246 regulated third-party providers in the UK compared to 338 in the whole European Economic Areai.  

Against the backdrop of a challenging economic environment – the COVID-19 pandemic and, more recently, cost of living rises – open banking has improved consumers and businesses financial resilience. The ecosystem has allowed for consumers and small businesses to reap these technological advances at a time of need.  

The number of users has shown strong growth over the last five years, and there are now: 

  • 6.5 million regular users of open banking-powered technology 
  • 1 billion application programming interface (API) calls per month 
  • 7.5m open banking-powered payments as of December 2022 

Open banking has a continuing role in promoting greater competition and innovation for the benefit of consumers, businesses and the wider economy, as well as maintaining the UK’s international competitiveness and leadership in the field. This will enable new services that consumers and businesses value and trust, and which support sustainable economic growth. JROC is determined to ensure that the benefits of open banking are fully realised and momentum is sustained. 

Charlotte Crosswell OBE, Chair and Trustee of OBIE, said: “The completion of the CMA’s Roadmap is the result of a concerted effort and partnership between the OBIE, CMA9, the wider ecosystem, regulators and government. Through this close collaboration, the tangible benefits of open banking-powered products are being delivered to over 6.5 million users. 

“As we look back over the last five years, our thriving ecosystem should be immensely proud of the financial innovation and benefits they have delivered to consumers and businesses. Not only is this helping millions of people across the UK with their day-to day financial management, but crucially, their ability to navigate the impact of the pandemic, rising cost of living and other unexpected financial shocks.” 

Sarah Cardell, Chief Executive of the CMA, said: “This update is an important milestone. The majority of banks have completed the Roadmap, and so open banking moves into a new phase.  

“The OBIE’s work is vital to the ongoing success of open banking, and we look forward to continuing to work closely with the FCA, PSR and HM Treasury to help deliver the future arrangements for open banking.” 

Henk Van Hulle, Chief Executive Officer of OBIE, said: “Over the past five years, open banking has evolved from concept to an everyday tool used by over 6.5 million people. Not only has it helped consumers improve the way they manage, move and make the most of their money, but open banking has also supported increased productivity and cost savings for businesses.  

“As we mark this milestone, it is important to note there is still more to do to build on these strong foundations so we can continue to build the best environment for open banking to reach its full potential.” 

Notes to editors:

  1. Open Banking Ltd was set up by the CMA9 in September 2016 as required under the Competition & Markets Authority’s (CMA) Retail Banking Market Investigation Order 2017 to fulfil one of the remedies mandated by the CMA following a market investigation into UK retail banking.
  2. The CMA’s investigation into the retail banking market (whose findings were published in August 2016) concluded that older and larger banks do not compete hard enough for customers’ business and that open banking should deliver a new, secure option for customers to be able to compare the deal they are getting from their bank.
  3. Third Party Providers (TPPs) are organisations or natural persons that use APIs developed to Standards to access customer’s accounts, in order to provide account information services and/or to initiate payments. Third Party Providers are either/both Payment Initiation Service Providers (PISPs) and/or Account Information Service Providers (AISPs).
  4. The OBIE is funded by the CMA9 (Allied Irish Bank, Bank of Ireland, Barclays, Danske, HSBC, Lloyds Banking Group, Nationwide, Natwest Group and Santander). The OBIE works with the CMA9, as well as challenger banks, financial technology companies, third party providers and consumer groups.
  5. OBIE’s role is to:
    • Enforce the obligations on the CMA9 under the CMA Order
    • Design the specifications for the Application Programme Interfaces (APIs) that banks and building societies use to securely provide open banking
    • Support regulated third party providers and banks and building societies to use the Open Banking Standards
    • Create security and messaging standards
    • Manage the Open Banking Directory which allows regulated participants like banks, building societies and third-party providers to enrol in open banking
    • Produce guidelines for participants in the open banking ecosystem
    • Set out the process for managing disputes and complaints
  6. Fundamental to the UK’s success in open banking has been the OBIE’s technical standards and delivery of a back-end infrastructure that guarantees the performance of the open banking technology. This, coupled with the collaboration between new and established financial services providers who have developed open banking-enabled products and services, has created a thriving ecosystem.
  7. Consumers and businesses can use the Open Banking App Store to explore which open banking-enabled products are right for them.
  8. Joint Regulatory Oversight Committee: https://www.fca.org.uk/firms/future-open-banking-joint-regulatory-oversight-committee.
  9. Payment Systems Regulator (PSR): The future oversight of open banking – Joint Regulatory Oversight Committee https://www.psr.org.uk/our-work/joint-regulatory-oversight-committee/.
  10. The revised Payment Services Directive (PSD2) and the transition to stronger payments security: https://www.ecb.europa.eu/paym/intro/mip-online/2018/html/1803_revisedpsd.en.html.

OBIE spokespeople are available on request.

For enquiries, please contact: CiceroOpenBankingPR@cicero-group.com, 020 7297 5965