The Joint Regulatory Oversight Committee (JROC) has published its recommendations for the next phase of open banking in the UK
The JROC is formed of HM Treasury, the Competition and Markets Authority, the Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR). The FCA and PSR are the committee’s co-chairs.
The JROC is playing a leading role in taking the next steps to realise the full potential of open banking, which currently has over 7 million active users in the UK. This will bring opportunities for new products and services, allowing consumers and businesses to share data and make payments in more convenient and efficient ways.
Taking the steps, set out in the report, will enable open banking to develop further in a safe, scalable and economically sustainable way. The JROC’s recommendations contain a roadmap of priorities over the next two years, covering five key themes:
- levelling up availability and performance
- mitigating the risks of financial crime
- ensuring effective consumer protection if something goes wrong
- improving information flows to third party providers (TPPs) and end users
- promoting additional services, using non-sweeping variable recurring payments (VRP) as a pilot
The JROC also sets out its vision for the open banking future entity, including the next steps which need to be taken in designing it. There will be a transition from the Open Banking Implementation Entity (OBIE) to the future entity which will build on the significant progress made to date. In addition, the report outlines the principles that will underpin a long-term regulatory framework, which the government is intending to legislate for.