Consultation launched on the future of UK open banking oversight

The Competition and Markets Authority is calling for input after UK Finance outlined the banking industry’s proposal.

With the implementation of open banking in the UK nearing completion, the Competition and Markets Authority (CMA) is turning its attention to the future.

Today the regulator launched a consultation on what kind of “oversight and governance” should be put in place to oversee the future of open banking.

The CMA says its view is that any organisation should be independently-led and accountable, and serving the interests of consumers and SMEs.

Its consultation comes just days after banking industry group UK Finance published detailed proposals for a not-for-profit private company to take over from the Open Banking Implementation Entity (OBIE).

The company would operate a membership model for industry participants, would initially be funded by the CMA9 banks, and would be led by an 8-person board, with just one consumer or end-user representative.

On the CMA’s website, the regulator sets out a vast number of questions around both the UK Finance initiative and calls for additional suggestions on the future oversight of open banking.

"As OBIE comes to the end of the implementation phase, we look forward to working with the CMA, who will set out the next steps and we encourage any external stakeholders to contribute to the consultation,” said Imran Gulamhuseinwala, trustee of the OBIE, in response to the consultation’s launch.

“Open banking has been critical to supporting the UK's emerging and growing fintech industry. We have pioneered the technology and as the Government said only last week, it is now taking the world by storm.”

“As we look beyond to open finance and smart data, it is terrific to see a clear recommendation from the Kalifa Review supporting the concept of a similarly mandated body to oversee its implementation. It will be beneficial to UK fintech, but most importantly to consumers and small businesses."

The CMA’s consultation is only running until 29 March, so get your responses in!