UK Finance has published a proposal for a “new service company” that will support the UK’s open banking infrastructure, according to a public statement. UK Finance is described as the collective voice for the banking and finance industry representing over 250 firms in the UK.
Last year, UK Finance suggested a model which would see the continuation of open banking functions moved into a new service company as the final stages of the Competition and Market Authority’s (CMA) implementation roadmap. The publication, Open Banking Futures: Blueprint and Transition Plan, is a proposal for a “smooth transition from the current Open Banking Implementation Entity (OBIE).”
The “Future Entity” is a yet-to-be-labeled company that may usher in this transition. According to the document the mission is as follows:
- The Future Entity prioritises end-users’ outcomes and promises to be at the heart of the Open Data and Payments market.
- The vision states it will exist to “enable UK consumers, small businesses and corporates to benefit from a highly efficient, safe and reliable Open Data and Payments market, as well as continuing to provide a platform for UK financial institutions to meet their regulatory requirements”.
The proposed services are said to take into account the requirements made by the CMA of the UK’s largest nine banks, known as the CMA9. It also ensures there is room for flexibility to accommodate changes outside of OB and into other parts of finance and other industries, such as Open Finance and Smart Data.