Nine of the UK's biggest lenders are set to reveal proposals for a not-for-profit company to oversee the evolution of greater competition through open banking.
Commenting on the news, Peter-Jan Van de Venn, fintech strategy director at digital consultancy Mobiquity, said: “Three years on since its introduction across the UK and Europe, today’s report from UK Finance is a step towards open banking becoming integral to the UK banking and finance industry.
"Open banking is mutually beneficial for banks and customers.
"It provides an opportunity for lenders to complete a solid analysis on a client’s financial data to make sure they can bear the loan, which is in the customer’s interest, as well as ensuring that the default risk is low, which is in the bank’s interest.
“Open Banking is designed to increase competition within the banking landscape, however since the introduction of PSD2 in 2018, Open Banking providers have been unable to meet customer demands.
"In practice, it has failed to be adopted across the UK and Europe as customers have remained very hesitant about sharing their data through open banking systems.
"Instead, they have consistently opted for their traditional banking provider due to safety and privacy concerns with open banking systems.
“In essence, open banking will only succeed if customers are ‘onboard’.
"While today’s news is a step forward for open banking providers, the next step is creating digital solutions with the customer in mind.”