The UK Competition and Markets Authority (CMA) has agreed to extend the deadline to comply with ‘Open Banking’ regulations ahead of the launch of on 13 January 2018.
Open Banking is a new system that enables the customers to allow specific banks to access their accounts through the usage of a secure set of technologies and standards.
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The system, which involves nine banks, will enable the customers to use services from a variety of regulated companies without sharing any credentials with any third parties.
Rival banks will also be able to attract a customer by showing how much they can save by switching lenders.
Every company that uses Open Banking to deliver their services need to receive Financial Conduct Authority (FCA) authorisation or approval from another European Regulator.
Barclays, Royal Bank of Scotland (RBS), HSBC, Santander and Bank of Ireland appealed to CMA to increase the timeframe.
In the additional time, which ranges from a few weeks to several months, the banks will complete pending preparations as all will work on different systems and ways to store information.
To ensure smooth functioning of Open Banking system in the initial stages, the companies offering this service have been asked to regulate the number of instructions processed and make it available to a small group of selected customers for six weeks.
Commenting on the launch, Open Banking Implementation Entity Trustee Imran Gulamhuseinwala said: “The goal of the UK’s Open Banking initiative is to allow consumers and small businesses the option to securely and safely make the most of their financial data.
“In time, Open Banking will give consumers and small businesses more choice, better services and cheaper products.”
