Barclays and HSBC unhappy with ‘high Open Banking costs’

UK banks HSBC and Barclays have railed against Open Banking reforms which they say have led to much higher costs than previously estimated.

The government says that Open Banking aims to place competitive pressure on the larger, established banks who have accounted for over 80 per cent of the current account market for many years.

Under the Competition and Markets Authority (CMA) rules, banks must share customer data with rivals, including smaller financial institutions, in order to boost competition. The watchdog has recently launched a consultation about the future of Open Banking and the governance around it.

“The spend on implementing the Open Banking remedy to date has been significantly higher than the amounts foreseen and taken into account by the CMA in its original 2016 assessment,” Barclays told The Telegraph.

The British bank also claimed that the changes had taken between five and six years, despite the regulator informing them costs would be spread across just two years.

HSBC also called for a shake-up of the regulation and said that larger banks should be able to “encourage cost discipline that has not existed to date”.

UK Finance, which represents over 300 firms in the industry, found that the UK’s nine largest banks were asked to put forward £26 million for the promotion of Open Banking reforms this year.

    Share Story:

Recent Stories

The Future of Intelligent Finance
FStech Group Editor Mark Evans sits down with Jason Cao, President of Global Financial Services Business Unit, Enterprise BG at Huawei ahead of its Intelligent Finance Summit which was held on 3rd and 4th of June in Shanghai. This Q&A delves into key trends in digital transformation of the financial services industry as well as a look at how data, robotic infrastructure, intelligent storage and innovative technologies are shaping the future for FSIs.

The Rise of Instant Payments
Instant payments are creating new business opportunities for banks by providing more touchpoints than ever. With these evolutions underway, Featurespace brought leading industry experts together to discuss how they are protecting customers from fraudsters in real time, utilizing innovative and disruptive solutions to reduce fraud. Click here to find out more.

Offloading Cyber Risk in the Cloud
As cyber attacks and data breaches are in the news on an increasingly regular basis - with regulatory penalties and customer trust on the line for financial services firms - it has never been more crucial to be compliant in the cloud.

This video, with Akamai’s EMEA director of security technology and strategy Richard Meeus, will help explain what your company can be doing to make sure it’s not embroiled in the next big fine or front-page scandal.