Open Banking Ltd’s Trustee Response to JROC’s Call for Views on the Design of the Future Entity

Open Banking Ltd (OBL) strongly welcomes the call for views on the design of the Future Entity of open banking by the Joint Regulatory Oversight Committee (JROC).

This report provides additional clarity on the Interim Entity, Future Entity, and the long-term regulatory framework for open banking. It also provides much-needed certainty to the market and will allow for continued investment in our world-leading ecosystem, moving us forward on the journey to deliver the next phase of open banking in the UK.

Background

In January 2023, the CMA announced the completion of the open banking Implementation Roadmap. This marked a pivotal milestone for open banking in the UK, and one that has delivered benefits to both business and consumers, as well as contributing more than £4 billion to the wider UK economy.

This month, JROC – led jointly by the Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR) – has set out its recommendations on the design of the Future Entity and the vision for open banking.

JROC identified three priorities to deliver the vision:

• to establish a sustainable and competitive footing for the ongoing development of the open banking ecosystem so it can grow beyond the current functionalities and further benefit end-user
• to unlock the potential for open banking payments
• to adopt a model that is scalable for future data sharing propositions.
• Shared purpose and shared vision

OBL and the Interim Entity will deliver different activities and need different capabilities but have a shared purpose and vision. The two organisations will work in close partnership to ensure we arrive at a future state that will maximise open banking benefits for the public good.

During this process, OBL has worked collaboratively with JROC members as they develop their approach and recommendations, providing expertise, knowledge, and insight on areas such as governance, funding, and capabilities.

Call for views

This thoughtful and timely call for views will help us define the future of open banking in the UK. We will now consider the recommendations carefully and provide our feedback to JROC and we encourage all participants to contribute their views.

Given the integral role OBL will play in delivering and supporting the transition to a Future Entity, we welcome representations from across the ecosystem that will be useful in shaping the effective delivery of transition. We will publish our full response for the benefit of the wider ecosystem.

JROC has demonstrated its commitment to securing the long-term future of open banking and I encourage all stakeholders to respond to the call for views to ensure the continued delivery of innovative products and services and support the creation of a data-driven economy.