The Joint Regulatory Oversight Committee (JROC) has unveiled a comprehensive program of work to propel the growth of open banking in the UK. This initiative involves the creation of specialized workstreams to implement the recommendations outlined in the roadmap. Additionally, the JROC has introduced two new working groups focused on variable recurring payments (VRP) and the future open banking entity. Furthermore, the JROC has entrusted Open Banking Limited (OBL) with leading and coordinating efforts across four other key themes.
The successful execution of this plan is pivotal in unlocking the full potential of open banking in the UK. Co-chairs of the JROC, Chris Hemsley, Managing Director of PSR, and Sheldon Mills, Executive Director of Consumers and Competition at FCA, emphasized the importance of collaborative and swift action to advance the identified priorities.
The VRP Working Group
The expansion of variable recurring payments (VRP) will enable consumers and businesses to conveniently and efficiently make a wider range of payments. This may include payments for utilities or charitable donations where the amounts vary for each transaction.
Currently, VRP usage is limited to transferring funds between individual accounts (known as “sweeping”). The working group aims to develop a blueprint for the phased introduction of non-sweeping VRP by September 2023.
The Future Entity Working Group
As part of the transition from the Open Banking Implementation Entity (OBIE), a future open banking entity will be established to build upon the significant progress achieved thus far.
The working group will focus on designing the future entity, including its role, structure, and funding. It will also present proposals for the implementation of the future entity. The working group is expected to report its findings to the JROC by September 2023, with the JROC publishing an update towards the end of the same year.
Both working groups will be established by June 2023, with the VRP working group chaired by the PSR and the Future Entity working group chaired by the FCA. The terms of reference, published today, outline the complete structure and membership of these working groups.
Collaboration with OBL
Under the oversight of the JROC, Open Banking Limited (OBL) will spearhead efforts across four key themes:
- Levelling up availability and performance
- Mitigating the risks of financial crime
- Developing proposals for dispute processes
- Enhancing information flows to third-party providers (TPPs) and end users
The JROC has communicated specific activities to OBL in a letter, outlining steps to be taken in pursuit of these themes, including collaboration with Pay.UK, the operator of Faster Payments, where necessary.
OBL will provide monthly updates to the JROC regarding progress, while the letter details an ambitious timetable for the completion of these initiatives.
—————————————————————————————————
About Innovation Streets:
Welcome to InnovationStreets.com! Get the latest insights from the finance and technology industries. Discover industry updates on Fintech Innovations, Regulatory Developments, Industry Insights, Events, and Banks/Insurance partnerships with fintechs. A platform for C-level executives to submit Thought Leadership content for their peers. Subscribe for updates!
