On August 8, the Financial Conduct Authority (FCA) published feedback on the creation of the primary regulator for open banking, the “Future Entity.” The Future Entity will establish and oversee core standards, including API protocols, to promote consistency and quality across open banking technologies.
According to the FCA, the new entity will operate on a nonprofit basis and collect revenue equitably to cover its costs and support innovation. The FCA stated that the Future Entity will play a key role in enabling variable recurring payments for household bills and advancing new financial products and services. Commercial open banking schemes will use the Future Entity’s standards but may offer additional premium services.
The FCA will continue to engage with industry stakeholders to determine the best approach for establishing the Future Entity and fostering a competitive and innovative open banking sector. Oversight of the underlying payments infrastructure will remain with the Payments Vision Delivery Committee and the Vision Engagement Group.
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