Open banking is almost ready for launch in the UK, with new rules that will see banks required to share more of their data with third parties set to come into force on January 13th.
However, of the nine major banks that were required to be ready by this date, five have been granted extensions after they informed the Competition and Markets Authority (CMA) that they would be unable to release all the required data by the deadline.
Barclays, RBS and HSBC have all therefore been given a few additional weeks in order to make preparations for open banking. Although RBS has said it will be ready for a partial launch, its Bankline customers will not be covered until February 2018. Meanwhile, Bank of Ireland received an extension of several months.
The fifth bank, Santander’s private banking subsidiary Cater Allen, has an extra year to prepare, although the company’s main consumer banking division is still expected to launch on January 13th, along with Allied Irish Bank, Danske, Lloyds Banking Group and Nationwide.
The CMA said in a statement: “Five banks told us that they would not be able to release all of these data sets by the specified date and we have therefore issued each of these banks with directions stipulating the timeline for the delivery of the outstanding data sets and the arrangements that each must make for reporting progress to the CMA in the meantime.”
The open banking changes mean that the UK’s largest retail banks must open up their customer records, such as transaction histories, to third parties such as fintech firms, as long as the consumers have given their consent. This can then be used to deliver more personalized services and is intended to promote competition and innovation in the finance sector.