UK Finance highlights the potential of open banking

open banking
open banking

Open banking continues to grow the UK payment sector and continues to embrace it evolving the payment journey dramatically and bolstering efficiency for consumers in the region. 

Looking to explore this further, UK Finance has united the payments industry for an exploration of the opportunity and potential of open banking.

The group took a deeper look at the steps that the industry should take to further embrace open banking, as it evolves the payment space and increases its development for consumers. 

As part of the report, the group underlined that Open banking payments have been identified by HM Treasury, the Competition and Markets Authority and the Payment Systems Regulator as ‘a new way of paying that offers greater choice to customers and merchants’. 

It also added that the growth of open banking can increase the competitive nature of the market within payments in the UK, whilst inevitably elevating efficiency of the payment journey.

Looking ahead it outlined the belief that there should be further development of open banking payment standards, supported by industry governance and an associated technical group. This should be considered following the CMA’s decision on open banking governance and a successor body to the Open Banking Implementation Entity.

Furthermore, mapping out the next steps, the report stated: “The immediate next steps are for the market to continue its dialogue on how to develop and enhance open banking payments. At the right time, this could evolve into more formal governance. The task will then be – once the Final Open Banking Roadmap is complete – for the market to explore and agree what can be done on a commercial and voluntary basis to enhance open banking payments.”