UK Finance has published a report setting out its recommendations for the future strategy of open banking. Open banking payments have increased exponentially over the past 3 years and there are now over 2.5m each month. To support future growth the report recommends:
- industry governance to drive further payment standards, which should follow the CMA’s decision on open banking governance and a successor to the OBIE;
- exploring the possibility of a multi-lateral industry framework setting out roles, responsibilities and liabilities of different market participants. The aim would be to reduce the risk of fragmentation in the market;
- further development of Variable Recurring Payments meaning that open banking could extend to subscription payments, which will offer consumers more choice, offer more competition, and can help protect consumers, for example by pre-authorising expenditure limits