Delivery of common API standards
To achieve the delivery of common API standards the CMA require the nine banks in the UK with the largest market share (RBS Group, Lloyds Banking Group, Barclays, HSBC Group, Nationwide, Santander, Danske, Bank of Ireland and AIB Group) to adopt and maintain common API standards through which they will share data with other providers and third parties. The first delivery date is by end Q1 2017 (see below for more detail). The CMA has also reiterated that the open API standard should be developed so that it is compatible with other interrelated regulatory requirements, such as those under the revised Payment Services Directive (PSD2).
To deliver this remedy, the CMA is requiring the nine institutions to create and fund an Implementation Entity with an Implementation Trustee, accountable to the CMA. The CMA approves the composition, governance arrangements, funding and budget of the Entity, and has approved the appointment of the Trustee.
Given Payments UK’s extensive involvement to develop the Open Banking Standard report for HM Treasury in 2015; our work on the transposition and implementation of PSD2; and the fact that all nine institutions are members of Payments UK, we are supporting the initial phase of supporting the nine banks to ensure rapid and positive progress is made, whilst remaining inclusive and transparent.
As a result Payments UK is providing support and a secretariat function to the nine named institutions as the work progresses, including facilitating the necessary engagement with all appropriate stakeholders.
Any subsequent involvement by Payments UK will be a decision taken by the Implementation Trustee.
The nine institutions have set up a Steering Group to progress this initial, set-up phase and have invited interested regulators to join as observers. Updates from the Steering Group will be published on this web page.
Timetable of the CMA’s remedies
Following the publication of the CMA’s final report on 9 August 2016, the following deadlines have been set for the delivery of the remedies.
|Remedy||Responsibility||Commencement date – by or between|
|Development and adoption of an open API standard||Largest banks in GB
|Q1 2017 and Q1 2018|
|Service quality metrics: core measures||All banks*||Q3 2018|
|Prompts: cooperate with FCA research and trials||All banks*||Q1 2017|
|Facilitating switching: CASS governance||Bacs||Q3 2017|
|Facilitating switching: CASS awareness and confidence||Bacs||Q3 2017|
|Facilitating switching: CASS redirection||Bacs||Q4 2017|
|Transaction history for customers||All banks*||Q1 2018|
|Overdraft alerts with grace periods||All PCA providers*||Q1 2018|
|Alerts: cooperate with FCA research and trials||All banks*||Q1 2017|
|Monthly maximum charge||All PCA providers||Q3 2017|
|Firm overdraft decision tocustomer prior to switching account provider||Bacs||Q3 2017|
|Development of a comparison services for SMEs||Largest banks in GB
|Publication of SME lending product prices||All SME lenders||Q3 2017|
|Development of SME loan price and eligibility tool||Largest banks in GB||Q1 2018|
|BCA opening procedures||All banks*||Q1 2018