In this IIL financial services webinar, Chantal Constable and Sean Devaney demystify Open Banking in the UK and identify ‘the good the bad and the ugly’; lessons learned, opportunities created and those that were missed.
Open Banking was introduced to the UK banking market back in 2018 with a view to improving competition in financial services. Initially a requirement of the Competition and Markets Authority for the top 9 banks in the UK, it has rapidly spread to over 30 banks in the UK market to cover >99% of all UK current accounts.
It has driven rapid innovation in payment services enabling over 300 Fintechs to develop new products and services in areas as diverse as financial services and the public sector, one example being HMRC enabling tax payments using open banking without the having to enter any bank details.
So, what next for Open Banking? Whilst Open Banking was developed primarily to improve competition in the banking services market, the consent authentication and authorisation model is an approach that can be applied in multiple industries. The next logical step it could be argued is Open Insurance.