Letters: Open up OpenBanking, but do it well
[Re: Competition watchdog to unveil open banking regulatory committee after fintech pressure]
We’re glad to see the CMA has published new guidance on the future of Open Banking. It’s not so much a resolution, however, as it is a signal that we’ve entered a critical phase of Open Banking development.
There are still fundamental issues which must be addressed to enable mass adoption, such as improving API uptime and creating a payer experience that is, at a minimum, good and consistent across banks. These details and how they are implemented are key. Inconsistent or generally non-conformant implementation will — even if just initially — disproportionately impact new or relatively young market entrants. The current proposition is fragile, and we need to finish the fundamentals. But the real prize is focusing on the future potential of open banking.
There are two areas which must be addressed and refined to ensure the continued success of Open Banking. The first is the question of funding: while we are encouraged to see a broader funding model, we have yet to see the details. Second, the statement describes the future entity with independent and accountable leadership. We would support a process whereby the joint regulatory oversight committee plays a central role in the appointment of an initial independent chair to allow everyone in the ecosystem should actively shape the direction of these issues.
Nanna Saito Nielsen, GoCardless