The FCA has shared an update on the development of a new standards-setting organisation for open banking in the UK, referred to as the ‘Future Entity’.
This body is expected to become the primary authority for open banking standards, driving innovation and consistency across the sector.
According to the FCA, the Future Entity will play a key role in advancing the rollout of variable recurring payments (VRPs) for certain household bills later this year. VRPs are seen as a major step in making payments faster, cheaper and more efficient for both individuals and businesses. The FCA believes these advancements could stimulate economic growth while enabling firms to develop financial products that simplify money management and facilitate seamless transactions.
The Future Entity will also be tasked with monitoring the quality and consistency of technologies used within open banking. These insights will help inform the FCA’s supervision of participating firms, ensuring standards remain high as adoption expands. The organisation’s work is expected to be used by commercial open banking schemes, further promoting innovation across the industry.
Over the past six months, the FCA has reported significant progress in open banking. Building on this momentum, the regulator plans to collaborate closely with the industry and stakeholders to establish the Future Entity in a way that fosters a thriving and innovative market.
FCA director of payments and digital finance Matthew Long said, “This is the next step in realising our vision of a more innovative, safe and competitive payments sector, which embraces technological change to better serve people and businesses.
“We expect the Future Entity to play a central role in the next phase of open banking, setting and monitoring the standards that underpin the industry.
“However, we can’t realise this future alone. Our engagement and support from industry continues to play a vital role in the future of open banking, as we build on the momentum we’ve seen in the past 6 months.”
The FCA’s update signals a strong commitment to the next phase of open banking, with the Future Entity positioned as a pivotal player in setting technical benchmarks, encouraging collaboration, and enabling the sector to deliver enhanced services for consumers and businesses alike.
For more, see on RegTech Analyst.
Keep up with all the latest FinTech news here
Copyright © 2025 FinTech Global
