CMA clamps down on open banking implementation
The Competition and Markets Authority (CMA) has issued Directions to five banks in respect of the Retail Banking Market Investigation Order 2017.
The nine mandated institutions are referred to as the CMA9
These Directions relate to delays in delivering certain aspects of the Open Banking programme, in particular with regard to mobile app functionality.
The nine mandated institutions, referred to as the CMA9, are: Barclays, Lloyds, Santander, Danske, HSBC, RBS, Bank of Ireland, Nationwide and AIBG.
Whilst it is recognised that four of the mandated banks have met the deadline, the Implementation Trustee of OBIE has recommended to the CMA that Directions are issued to those banks who have missed the agreed deadlines and that enforcement processes are put in place.
Commenting on the CMA Directions, trustee of the Open Banking Implementation Entity (OBIE), Imran Gulamhuseinwala OBE, says: “While we are aware that the Open Banking programme has ambitious and challenging timescales, it is disappointing that some banks have needed more time to deliver some important new Open Banking functionality to their customers.”
Gulamhuseinwala adds: “However, we are pleased to see that four of the mandated banks have delivered these changes either on or ahead of time – which means that their customers will start to reap the benefits of the enhanced functionality and features that have been introduced.
“While it is still early days, overall it is clear that Open Banking is gaining momentum and traction, with innovative new products and services launching which will ultimately help customers move, manage and make more of their money.”
