The Joint Regulatory Oversight Committee (JROC) has posted the recommendations for the next stage of Open Banking in the United Kingdom.
JROC is made up of HM Treasury, the Competition and Markets Authority (CMA), the Financial Conduct Authority (FCA), and the Payment Systems Regulator (PSR). The FCA and PSR are the committee’s co-chairs.
Open Banking has grown in the UK due to mandated requirements by financial services firms to make it easier for other firms to gain access to customer information and services IF the customer approves. At the same time, data is controlled by the customer as opposed to being owned by the financial service firm. In many respects the UK leads the world in the Open Banking upgrade for UK consumers and businesses.
The recommendations posted by JROC cover the next two years, with the five categories:
- leveling 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
Additionally, there will be a transition from the Open Banking Implementation Entity (OBIE) to a future entity following issues at the OBIE.
The document is available below.