News

UK Emerging Payments Association seeks to 'stimulate innovation' in open banking

May 23, 2018

The Emerging Payments Association in the U.K. has asked the nation's Open Banking Implementation Entity to amend the terms of the Competition and Markets Authority framework in order to allow emerging payments organizations to realize the potential of open banking.

An open letter from the association's 130 members to the Open Banking Implementation Entity relates concerns about barriers that could inhibit fintechs from engaging with open banking, according to a press release about the letter.

The association claims that the nine banks covered by the CMA framework have displayed varying levels of enthusiasm for certain aspects of open banking, with some described as striving to meet the letter, rather than the spirit, of the open banking policy.

The letter covers several concerns, including:

• Banks' compliance with open banking
• Public perception and consumer protection
• API standards
• Data standards
• Customer journeys
• Scope of open banking

Further, association members claim that consumers and third-party providers lack an understanding of, and trust in, open banking, the release said. The association said that this represents a significant obstacle to customer uptake, and that it is essential improve the messaging around open banking in order to provide certainty and protection to customers.

"Just having open banking will not stimulate innovation on its own," Tony Craddock, director general of the Emerging Payments Association, said in the release. "You have to collaborate to stimulate innovation. This open letter highlights what is missing from open banking and what needs to be done now to ensure its success. We hope it will enable collaboration between the EPA's progressive payments companies and open banking. I believe everyone using and facilitating payments will benefit."