OBL has heralded a significant advancement in the financial technology landscape with the CMA formally recognising the full completion of the Open Banking Roadmap.
This landmark achievement follows the prior “substantial completion” and confirms that all nine banks under the CMA’s Retail Banking Market Investigation Order have now fulfilled their obligations, enabling comprehensive open banking payment and account information services across the UK.
The completion involved the final delivery of required functionalities by Danske Bank, Bank of Ireland, and Allied Irish Bank, including the variable recurring payments (VRPs) for sweeping. This capability enhances financial control and introduces smarter, more flexible payment options for consumers nationwide. It also facilitates the collaboration between fintechs and banks, potentially driving forward the next wave of financial services innovations.
Open banking has fundamentally altered the payment and data-sharing landscape, allowing secure data access for customers and small businesses through third-party providers (TPPs). These providers utilise this data to tailor products and services to the specific financial needs of individuals. Furthermore, open banking offers a new, secure method for making payments.
The sector has seen significant growth, with 11.32 million users by July 2024, marking a 12% increase from the previous month. Payment transactions also grew, with 19.54 million transactions recorded in July, of which 2.45 million were VRPs for sweeping, reflecting a 23.9% increase.
The UK’s open banking sector, now valued at over £4bn, supports the creation of thousands of digital jobs, positioning the UK as a leader in global financial innovation. The roadmap’s completion is timely as it aligns with the government’s upcoming introduction of the Digital Information and Smart Data Bill, which aims to extend the benefits of data-sharing to other key sectors like energy and telecom.
Marion King, Trustee and Chair of OBL, expressed pride in achieving this milestone, praising the collaborative effort across the ecosystem. Henk Van Hulle, CEO of OBL, highlighted the sweeping functionality’s role in broadening customer benefits, looking forward to exploring commercial VRPs’ potential. Dan Turnbull, Senior Director at the CMA, underscored the roadmap’s completion as a pivotal update, emphasizing the ongoing collaboration with regulatory bodies to guide the future of Open Banking.
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