EPA calls for open banking amendments to boost fintech access
The Emerging Payments Association (EPA) is calling for the Open Banking Implementation Entity (OBIE) to make amendments to the Open Banking initiative’s framework to help financial technology firms to realise its potential.
The UK payments industry trade body believes that banks should be forced to help fintechs have access to Open Banking and that more should be done to boost consumer trust in the initiative.
The EPA revealed its top concerns in an open letter to the OBIE, with support being provided by the EPA Advisory Board and more than 130 of the association’s members.
The EPA’s members said that the nine banks that are covered by the CMA framework have showed varying levels of enthusiasm in embracing certain aspects of Open Banking, with the letter showing that members believe that some banks are striving to meet the letter rather than the spirit of the initiative.
Among the concerns that were listed in the letter were banks’ compliance with Open Banking, the public’s perception of the initiative and the protection of consumers. Members are also concerned about data standards and the scope of Open Banking.
The letter also shows that EPA members believe that consumers still lack understanding and trust in Open Banking and that this is acting as a barrier to consumers making use of the initiative.
Commenting on the letter, the EPA’s Director General Tony Craddock said that having Open Banking is not going to stimulate innovation on its own – it is necessary to collaborate to stimulate innovation.
He added that the Open Letter highlights what is missing from Open Banking and what needs to be done now to guarantee its success.