Chi Onwurah – 2016 Parliamentary Question to the HM Treasury
The below Parliamentary question was asked by Chi Onwurah on 2016-10-18.
To ask Mr Chancellor of the Exchequer, what assessment his Department has made of the implications of online and mobile applications which require automated access to a user’s banking details for (a) accessibility of banking, (b) digital inclusion, (c) users’ banking security and (d) consumer rights.
Simon Kirby
The government is committed to increasing competition in banking to improve outcomes for consumers. This includes establishing a competitive and innovative environment where banks deliver greater choice and value to their customers. A key element of this vision is ensuring the UK remains the world-leader for financial technology (FinTech).
The Competition and Markets Authority recognised the potential of FinTech and open banking in its retail banking market investigation by requiring the nine largest UK banks to develop and adopt an open banking standard for application programming interfaces (APIs) to allow access to customer account information as set out in the revised Payment Services Directive (PSDII) which comes into force in January 2018.
This will deliver a common standard for technology that allows the sharing of bank data, allowing authorised third parties to access information such as customer banking details and usage, prices and service quality.
Harnessing the potential of open banking means that customers will be able to more easily access high quality, low cost banking services, and improve digital engagement with financial services by helping customers better understand where they could get a better deal. PSDII will set out requirements for enhanced security and consumer protections for online and mobile applications accessing users’ banking details from January 2018. The government will be consulting on the transposition of this directive shortly.
