Open Banking ends managed roll out, paving way for new services

The UK's Open Banking initiative has completed its three-month managed roll out programme, leaving regulated firms free to start offering related services.

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Open Banking ends managed roll out, paving way for new services

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

Since mid-January, the Open Banking Implementation Entity has carried out a managed roll out designed to prove that the systems designed to give customers control over their financial data are ready.

Now, the OBIE says that the operation has proven the account data access functionality of the Open Banking system, meaning that FCA authorised and registered third parties are now able to offer products based on it to customers.

However, payments functionality has not been tested to the "same degree" and so any new payments-focussed services will have to go through extensive proving.

Imran Gulamhuseinwala, trustee of the OBIE, says: "Managed Roll Out has enabled us to introduce a vital new piece of our financial system ready for customers in just a few weeks. We have learned an enormous amount and refined the system to the point where we can be entirely confident that we can now give consumers and businesses real control of their financial data.”

With the roll out complete, consumers and businesses can now start sharing their financial data with third parties. To help these new developers make the most of the system, the OBIE has set up a service called Launch Support, offering end-to-end guidance on things such as getting regulatory clearance to actually connecting to accounts.

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Comments: (5)

Ketharaman Swaminathan

Ketharaman Swaminathan Founder and CEO at GTM360 Marketing Solutions

All dressed up and... I hope somewhere to go! Sadly, I tend to believe that the Facebook-Cambridge Analytica fracas will have a dampening effect on initial uptake of Open Banking.

A Finextra member 

People are unlikely to rush out the door looking for "open banking" services.  As opportunities/needs arise, they will likely embrace services where sharing data enables benefits to the customer.  Hopefully the facebook-CA debacle encourages people to think more carefully about how they use their data.  Most open banking use cases are about customer convenience, in which case, convenience often trumps concerns.

Ketharaman Swaminathan

Ketharaman Swaminathan Founder and CEO at GTM360 Marketing Solutions

@Claire Callan:

From what I understand, the need for Open Banking was felt on the basis of the following understanding of the market: (1) There's a lot of value in customer's banking data (2) Banks are doing nothing with that data (3) Customers are deprived of all the insights they can gain from their data (4) Ergo customer's banking data should be thrown open to third-parties to mine and generate insights that are useful to customers. 

By doing #4, Open Banking should be fulfilling a long pent-up consumer demand. Ergo Consumers *should* be rushing out the door looking for Open Banking products and services. Curious to know why you believe otherwise.

A Finextra member 

Totally agree.  Peoples expectations have risen in a digital anywhere anytime world.  That said I dont think my mum or my next door neighbour would know what "open banking" is or means. Specialists understand it.  Customers may understand it once they go to market to seek out a product and do their research (not an everyday task, more likely people will encounter on an "as needed" basis).

Ketharaman Swaminathan

Ketharaman Swaminathan Founder and CEO at GTM360 Marketing Solutions

Agreed but, if the founding premise of Open Banking is valid, your mum and next door neighbor and the Average Joe / Jane Consumer should've been facing the pain and having the need and researching the solution for a long, long time in the past. Just that, their search would've yielded no results all these years. After the recent launch of Open Banking, their search should yield results and people should be queuing up to adopt Open Banking solutions. In other words, like a cure for cancer, there should be a long waiting list for adopters of Open Banking.

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