[Openid-specs-fapi] UK Open Banking Development Group & the CMA Implementation Entity

Dave Tonge dave.tonge at momentumft.co.uk
Wed Aug 10 08:48:18 UTC 2016


Hi all

Apologies that I wasn't able to join the last meeting. Unfortunately the
meeting schedules are not ideal for European time zones.

I saw that there was discussion about the Open Banking Development Group
and I thought it worth giving some background to this group.

The UK Competitions and Markets Authority (CMA) yesterday released their
final report into the UK Retail Banking Sector.
https://www.gov.uk/cma-cases/review-of-banking-for-small-and-medium-sized-businesses-smes-in-the-uk

One of their key remedies is Open Banking APIs. They have embraced the Open
Banking Working Group report and are:

*"requiring that RBSG, LBG, Barclays, HSBCG, Nationwide, Santander, Danske,
BoI and AIBG (the largest banks in GB and NI) adopt and maintain common API
standards through which they will share data with other providers and with
third party service providers including PCWs, account information service
providers (AISPs) and payment initiation service providers (PISPs)."*


These APIs will be used both for product and service data, as well as
transactional data. The section relating to transactional data is:

*"requiring the largest banks in GB and NI (listed above) to agree with the
IT open standards for APIs with full read and write functionality and make
available through them PCA and BCA transaction data sets, to be released no
later than the transposition deadline of the second Payment Services
Directive (PSD2) ie by 13 January 2018."*


While some of us in the industry were pushing for more aggressive
timelines, we are still happy that this is a CMA
​order
 that the banks will have to comply with.

The CMA have instructed the banks to set up an Implementation Entity with
an independent chair. The entity will be funded by the banks but the CMA
have recommended that there is involvement from non-banking industry
participants on the implementation entity. Payments UK have already set up
this Implementation Entity:
http://www.paymentsuk.org.uk/policy/payments-CMA-remedy-phase1/temporary

Currently this implementation entity has already started meeting and
discussing the technical standards for the API. Its current membership has
only representatives from the Top 9 UK banks and Payments UK.

The ODi are proposing that they administer and co-ordinate an "Open Banking
Development Group" to *"drive forward open innovation around an open
banking standard on a UK and international basis".*

​My understanding is that a
t the moment this is an initiative of the ODi
​ and that ​
there is no wider mandate for OBDG.

The "hope" is that the OBDG will work with the above mentioned
implementation entity:

*"We hope that the OBDG will be able to work with the CMA IE to ensure the
standards and APIs used by the CMA IE to meet the CMA’s defined objectives
are consistent with the work done by the OBDG."*


https://docs.google.com/document/d/1KBp3cWOGePUrdy4m52zJuvg5g06lLHWdtYAFDLz48NA/edit

I think it is good that the FAPI WG engage with the OBDG, but with the
understanding that this is early days for the OBDG.

More importantly I suggest that the FAPI WG establish communication with
the Implementation Entity directly. This is the organisation with the
mandate to establish open banking APIs in the UK, it has no further need
for funding and is already meeting and discussing APIs.

Please let me know if I can be of any assistance in this area.

Thanks

-- 
Dave Tonge
CTO
10 Temple Back | Bristol | BS1 6FL
t: +44 (0)117 280 5120
m: +44 (0)7577 815570

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