These proposals focus on creating an efficient, safe, secure, and commercially viable ecosystem and aim to enhance payment methods and facilitate the sharing of financial data to drive economic productivity and innovation.
Since April 2023, JROC has been collaborating with industry stakeholders to advance the vision and recommendations for Open Banking. The establishment of a Future Entity, which will succeed the current central standard-setting body, Open Banking Limited (OBL), is central to these efforts. This Future Entity is envisioned to support the development of new and improved open banking propositions, encouraging competition and innovation within the financial sector.
In the interim phase, an Interim Entity will be created to oversee non-order work streams until the transition to the Future Entity is complete. JROC is consulting on recommendations for both the Future and Interim Entities, seeking input from various stakeholders to ensure their effectiveness and alignment with the broader ecosystem's needs.
Key areas of focus include governance, funding models, and the regulatory framework to support innovation and consumer protection. Additionally, JROC emphasises the importance of legislative support for these recommendations and anticipates the enactment of relevant legislation in due course.
The establishment of an Interim Entity will allow for the progression of non-order workstreams currently undertaken by OBL, ensuring continuity and efficiency in advancing Open Banking initiatives. Clear separation between Order and non-Order activities is deemed necessary to facilitate effective progress.
JROC acknowledges the contributions of various working groups and stakeholders, including OBL and the Strategic Working Group, in shaping these recommendations. Collaboration with regulatory bodies such as the Financial Conduct Authority (FCA), Payment Systems Regulator (PSR), and the government is ongoing to develop a long-term regulatory framework for Open Banking, scalable to accommodate future data-sharing schemes.
Furthermore, efforts to expand Open Banking-like data-sharing to other financial sectors and products, known as Open Finance, are underway. Initiatives such as the Smart Data scheme aim to enhance personal data mobility and drive economic growth. Overall, JROC's proposals underscore the commitment to supporting a dynamic and innovative Open Banking ecosystem in the UK, with an emphasis on consumer benefits, competition, and regulatory oversight.
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