Compliance Monitor
Regulators look to widen ‘open banking’
Customer use of open banking utilisingthe UK framework has surpassed one million users and there are over 200 activeservice providers across a range of services. Yet the growth of the sector hasbeen limited by the development of a regulatory framework for access to data. Charlotte Hill and KatieFry-Paul outline the journey so far.
Charlotte Hillisa partner and head of the financial services regulatory group, whileKatieFry-Paulis an associate, at Taylor Wessing in London. Contact themonc.hill@taylorwessing.comandk.fry-paul@taylorwessing.com.
Background
The use of customer payments data bythird-party providers (TPPs) is not new. Many TPPs (commonly fintech companies)have been
providing innovative services, such as round-up savings accounts, totheir customers for a number of years. However, the growth
of this sector hasbeen hindered by the lack of a regulatory framework for access to data. TPPshave traditionally had to use
techniques for data collection that have beeninefficient and, in some cases, insecure. In addition, access to payment datahas
often required the use of a further third party (such as a data aggregator),driving up the cost of providing these services
for TPPs, potentially limitingcustomer uptake.