Open Banking Milestone as CMA Confirms Roadmap Completion

The UK’s Competition and Markets Authority (CMA) has officially confirmed the full completion of the Open Banking Roadmap. 

The announcement marks a pivotal moment in the country's journey towards a more open and innovative financial landscape, building upon the ‘substantial completion’ milestone reached in 2023.

Open Banking initiatives ‘complete’ in UK, says CMA

The completion of the Roadmap signifies that all nine banking providers mandated by the CMA under the Retail Banking Market Investigation Order have successfully implemented the required functionality to offer a comprehensive suite of open banking payment and account information services. 

This includes Danske Bank, Bank of Ireland and Allied Irish Bank, which have now fully delivered all their Roadmap requirements, including the crucial variable recurring payments (VRPs) for sweeping.

Marion King, Trustee and Chair of Open Banking Limited (OBL), says: “The CMA's confirmation of the Roadmap's full completion is a major achievement for open banking in the UK. 

“I'd like to pay tribute to the banking providers who have successfully implemented the Roadmap, and the ecosystem and wider stakeholders for their hard work and collaboration that allowed us to reach this major milestone in a relatively short period of time.”

The implementation of VRP for sweeping functionality is particularly noteworthy, as it opens up significant opportunities for fintech companies to collaborate with these banking providers. This collaboration is expected to drive the next wave of financial innovation, introducing novel services tailored to customer needs.

Open banking has already transformed the UK's payments and data landscape since its inception. 

It enables customers and small businesses to securely share their current account information with third-party providers (TPPs), who can then use this data to create bespoke financial products and services. Additionally, it offers a new, secure method for making payments for goods and services.

Open Banking’s UK journey 

The impact of open banking on the UK financial sector has been substantial. As of July 2024, the number of open banking users reached 11.32 million, marking a 12% increase from the previous month. 

In terms of payments, July saw 19.54 million transactions, with VRPs for sweeping accounting for 2.45 million – a significant growth of 23.9%. 

Henk Van Hulle, CEO of OBL, says there’s potential for further innovation: “The rollout of sweeping functionality across all the CMA9 is a crucial step in extending the benefits of open banking to a broader range of customers. 

“As we look ahead, the next exciting chapter will involve exploring the potential of commercial VRPs, which have the capacity to revolutionise the way businesses manage payments.”

The growing adoption of open banking has had a notable economic impact. The open banking ecosystem is now valued at over US$5.1bn (£4bn) and is supporting the creation of thousands of skilled digital jobs. This growth positions the UK as a leader in global financial innovation, underscoring the transformative effect of open banking on the economy.

The completion of the Roadmap comes at a crucial time, as the UK government prepares to introduce the Digital Information and Smart Data Bill. 

This legislation is expected to build upon the achievements of open banking and extend the benefits of data sharing to smart data schemes in key economic sectors, including energy, telecoms, transport and retail.

Dan Turnbull, Senior Director at the CMA, concludes: “Today's update is an important milestone. The completion of the Roadmap cements the move to the future of Open Banking, one that can expand the benefits of Open Banking beyond the scope of the CMA's Order.

“OBL's work is vital to the ongoing success of Open Banking. We look forward to continuing to work closely with the FCA, PSR and HM Treasury to help deliver the future arrangements for Open Banking. 

“As we move towards this future, we will continue to ensure the Standard is maintained and that the nine banking providers are held to their ongoing obligations under the CMA's Order.”

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