In a boost to the open banking sector, the Financial Conduct Authority has altered the regulatory framework surrounding open banking.
Specifically, the body announced plans to end the 90-day rule for re-authentication when it comes to open banking services, a factor that has increased the friction on the payment journey for consumers.
Nonetheless, under the new framework, fintechs will no longer need to endure this process, in a move that can bolster customer retention and improve the user experience.
It is said to be a decision that can enhance the relationship between firms and third-party providers, limiting barriers between the two as access to data is heightened.
In making the move, the FCA stated: “We consider that these measures are proportionate, taking into account the level of risk. They balance the need to protect consumers from TPP access without explicit consent, and unwittingly sharing data, with reducing friction for customers.”