Open Banking was undertaken in the UK in 2017 as part of a packet of modifications observing the Competitor and Markets Authority’s (CMA) demand examination into retail banking. The CMA requested the 9 biggest retail banking providers in the United Kingdom to unlock up consumer data utilizing secure data protocols. To provide this consequence, banking providers were needed to found an autonomous Open Banking Implementation Entity (OBIE), nowadays overseen and chaired by Charlotte Crosswell OBE as Implementation Trustee. A Roadmap was put in spot that set out the specific provisions on the 9 banking providers.
Open Banking facilitates customers and industries to percentage their marketing data securely with trusted third groups, who can furnish consumers with applications and assistance which save them time and money. In a market where larger, established banks have accounted for over 80% of the current account market for many years, Open Banking improves financial decision making for consumers and drives down costs for small and medium sized businesses, boosting competition and innovation. Open Banking now has over 6 million active users in the UK who will continue to benefit as Open Banking reaches this important milestone. Open Banking is widely recognised as a major success, with many other countries considering similar open standards.