Laura WilesThe FCA has published an independent report from KPMG on proposals for the establishing a future open banking standards-setting body.
As multiple organisations have expressed interest in facilitating the design of the future standards-setting body, the FCA encouraged industry participants to combine around a single body. The report sets out the scores and rankings of proposals submitted by Open Banking Limited and the Smart Data Group, which were formally assessed by an independent Industry Evaluation Panel.
The proposals were assessed across six criteria:
- Governance, independence and ethical framework
- Industry support and stakeholder engagement
- Technical capability
- Funding and financial feasibility
- Risk management and security
- Operational feasibility
Overall, Open Banking scored higher that the Smart Data Group in every category, and the Panel recommended the former as the preferred organisation to facilitate the design and transition to the future standards-setting body. While Smart Data Group was recognised for its independence, strong conceptual design and emphasis on broad and inclusive participation, there were material weaknesses around the operation of governance structures and confidence regarding mobilisation.
In the coming weeks, the FCA will also publish a further report setting out how the future standards-setting entity might be operationalised.