UK: Open Banking completes managed rollout programme

Open Banking services can now be offered directly to customers by fully authorised companies.

The body charged with implementing Open Banking has been operating the managed rollout phase since 13 January to prove the new piece of UK financial infrastructure was ready for customers.

Now it confirmed that the programme has proven the account data access functionality of the Open Banking system. This means that Financial Conduct Authority (FCA) authorised and registered third parties are now able to offer products based on it to customers.

However, it noted that as regulated companies focused on the data capabilities of Open Banking, it has not been possible to test the Payments functionality to the same extent.

Therefore, new payments-focused services will still be put through extensive proving as they engage with the system.

In addition to ending managed roll out, the Open Banking Implementation Entity (OBIE) has also created a service for companies coming in to the Open Banking ecosystem.

Launch Support will provide an end-to-end guidance service for third parties to ensure that they are helped to go live, from obtaining the appropriate regulation to connecting to accounts.

Open Banking has been heralded as a likely source of innovation within the banking and wider financial services markets, with hopes that it will invigorate the mortgage process.

Specialist lenders are particularly keen to use the services to enable them to get a clearer picture of the borrowers they are receiving applications from.

However, the general public appears to be hesitant about allowing third parties to access financial data and the industry has admitted it will need time to give customers confidence to use it.