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Key UK open banking oversight decision now delayed until 2024

Open Banking Limited will remain in limbo until at least the first quarter of next year

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While 2023 was intended to be “the year of delivery” for open banking, in a progress update yesterday the Joint Regulatory Oversight Committee (JROC) revealed a host of delays.

Six of the actions outlined in the open banking roadmap to be completed in Q3 or Q4 2023 have yet to meet their delivery deadlines and are being pushed into 2024.

This includes finalising the structure, governance and funding of the future entity which Open Banking Limited (formerly the Open Banking Implementation Entity) will become to oversee the development of open banking.

Finalising the design of the future entity was originally planned for Q3 2023, but has now been pushed back to Q1 2024, while Open Banking Limited starting to transition into the future entity was originally planned for Q4 2023, yet the new plan is for this to take place in Q2 2024.

“The future entity will be instrumental for the future success of Open Banking in the UK, and the Committee will make a decision as to its recommended structure, governance and funding model early next year,” the JROC said in a statement.

The JROC attributes these latest delays to it allowing more time for working groups and subgroups to collect input from various members and stakeholders.

Aside from the delays, the JROC also reported significant progress across the rest of the roadmap, including toward the rollout of non-sweeping variable recurring payments (VRPs) starting in Q3 2024.

“It’s really encouraging to see such strong growth of open banking in the UK and how much progress has been made since April,” JROC co-chairs PSR managing director, Chris Hemsley, and FCA executive director of consumers and competition, Sheldon Mills said.

“The whole open banking ecosystem has worked collaboratively to deliver this progress. We now expect to see consumers and businesses starting to benefit from new and innovative ways of managing and making payments on a wider scale.”

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