PSD2 products included in Open Banking update
Written by Chris Lemmon
The UK’s Open Banking Implementation Entity (OBIE) has expanded its standards to include all payment account types covered by PSD2 – including credit cards, e-wallets and prepaid cards.
In a move referenced in the Chancellor of the Exchequer’s Autumn Budget yesterday, the Competition and Markets Authority (CMA) has approved the amendments to include a programme of enhancements to ensure that Open Banking delivers maximum benefits for retail customers and SMEs.
The new enhancements will build on the core requirements of the Open Banking scheme and form a programme of releases throughout 2018 and into 2019.
The Second Payment Services Directive (PSD2) – European legislation which will be implemented in January 2018 – will see customers able to give their financial account and payments services information to third party providers. The UK’s Open Banking initiative is developing APIs so that this customer information can be shared securely.
Imran Gulamhuseinwala, trustee of the OBIE, said: “This is a truly innovative project and the UK is leading the world in opening up the banking system to new services and, ultimately, re-shaping it around the customer. These enhancements should give even greater confidence to the FinTech community to seize the opportunity to participate fully in the financial services ecosystem.
“They will create standards for future dated, recurring and international payments as well as all the payment and product types covered by PSD2. These enhancements will maximise the benefits of Open Banking services for the customer. The OBIE will continue to work with the CMA, HMT, CMA9 and other stakeholders to drive this forward.”
Adam Land, senior director at the CMA, added: “Today’s announcement is a major milestone in the delivery of Open Banking, which will transform UK banking for retail customers and small businesses. This will make it easier for customers to manage their money, find the best deal for their needs and avoid overdraft charges.
“There is huge interest globally in the way that UK regulators have worked together with the banking industry, the FinTech sector, consumer groups and others to drive this project forward at pace. This plan, which the CMA has approved today, is both deliverable and bold in scope.”