Kat Cloud, UK Policy Lead, Plaid, responds to the CMA’s verdict on the future of Open Banking implementation: “Many months since the Open Banking Implementation Entity’s (OBIE) final roadmap was published, we’re finally learning more about the CMAs plans to support further development of the sector. 

“The announcement brings some clarity around how the CMA plans to support the transition to the Future Entity, with a new Joint Regulatory Oversight Committee due to be installed. However, while the Committee will undoubtedly help to provide some of the necessary oversight needed to ensure a smooth transition from the OBIE, key questions remain over just how the challenges facing the Open Banking project will be resolved. 

“The sooner Open Banking is fully implemented, the sooner consumers can benefit from the innovation that open finance sparks. However, delays are likely to ensue from the proposed shared funding model and little has been said around the issue of solving poor API performance, which is hampering overall uptake. The CMA could also provide further clarity around its planned approach to deciding when the FEs role will be fulfilled. 

“On balance, this latest statement helps to push us in the right direction but falls short of offering complete clarity over the future success of the Open Banking project. The key thing now is for industry to come together to ensure the open banking ecosystem transitions to the Future Entity with limited disruption and to avoid undoing the progress made to date.