Open Banking 

Open Banking enables authorised third-party providers to access payment accounts with customer consent to provide account information and payment products and services. The open banking market is developing new ways to pay, improving access to credit and simplifying processes through automated sharing of account data. We work with our members and the broader stakeholder community to contribute to the success of open banking. Our focus is now on how to enable open banking payments to offer customers more choice about how they pay and on considering how open banking can extend to open finance in a way that provides customer benefit. We look forward to the completion of the Final Open Banking Roadmap in 2022 and the development of a new governance model for open banking.

Open Finance 

The FCA set out their expectation that industry would develop roadmaps in their feedback statement (March 2021). UK Finance has now been working with members to demonstrate the various industry-led use cases which are emerging, centred around outcomes for the consumer. 

Privacy, Data Ethics & AI 

As the digital transformation progresses, financial sector firms need to be able to innovate for the benefit of customers and to drive efficiency. But this must be achieved while ensuring that customer information is treated with respect for individuals’ privacy and other rights. To help find this balance, we engage closely with developments in data protection law, including regulatory guidance and more fundamental changes to the UK’s data protection legal regime post-Brexit. We also work closely with member specialists to develop thought leadership on the challenges associated with the roll out of AI and engage with regulatory authorities to promote a proportionate carefully considered approach to AI regulation. Lastly, we provide horizontal support to wider UK Finance policy work, where there are important privacy or data ethics considerations, such as proposals for new data sharing. 

Central Bank Digital Currency 

Whether or not the UK launches a CBDC, and how it regulates the growing markets for cryptoassets and stablecoins, is a key consideration of HM Treasury and the Bank of England. Through our New Digital Money Steering Group, UK Finance seeks to coordinate the industry’s engagement with the Bank of England and HM Treasury as they develop proposals for a UK Central Bank Digital Currency (CBDC). Alongside this, we continue to work with members to understand how related activities can be brought safely within the regulatory framework, innovation supported and good customer outcomes ensured.

The Bank of England and HM Treasury consultation on the next stage of CBDC consideration is expected in Q2/Q3 2022. UK Finance is working to assist member’s consideration of CBDCs and provide input and influence to regulators ahead of the consultation. 

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