The Joint Regulatory Oversight Committee (JROC) has published its
recommendations for the next phase of open banking in the UK.
Recommendations for the next
phase of open banking in the UK
Details
The JROC is formed of HM Treasury, the Competition and Markets
Authority, the Financial Conduct Authority (FCA) and the Payment
Systems Regulator (PSR). The FCA and PSR are the committee’s
co-chairs.
The JROC is playing a leading role in taking the next steps to
realise the full potential of open banking, which currently has
over 7 million active users in the UK. This will bring
opportunities for new products and services, allowing consumers
and businesses to share data and make payments in more convenient
and efficient ways.
Taking the steps, set out in the report, will enable open banking
to develop further in a safe, scalable and economically
sustainable way. The JROC’s recommendations contain a roadmap of
priorities over the next two years, covering five key themes:
- levelling up availability and performance
- mitigating the risks of financial crime
- ensuring effective consumer protection if something goes
wrong
- improving information flows to third party providers (TPPs)
and end users
- promoting additional services, using non-sweeping variable
recurring payments (VRP) as a pilot
The JROC also sets out its vision for the open banking future
entity, including the next steps which need to be taken in
designing it. There will be a transition from the Open Banking
Implementation Entity (OBIE) to the future entity which will
build on the significant progress made to date. In addition, the
report outlines the principles that will underpin a long-term
regulatory framework, which the government is intending to
legislate for.
