Open Banking transformation moves a step closer.

The Competition and Markets Authority (CMA) is taking the next step towards introducing Open Banking.open-banking

The development of Open Banking – the use of technology to provide customers with more control over their accounts and financial services – is one of 17 CMA-imposed changes that will make banks work harder for their customers.

Other changes, on which the CMA is opening a consultation, will require banks to cap their monthly unarranged overdraft charges, help customers avoid unarranged overdraft charges by making banks text them when they are at risk of going overdrawn, and also help customers compare the service they get from their bank with other banks.

Alasdair Smith, Chairman of the retail banking market investigation, said:

“These reforms will fundamentally transform banking for personal customers and small businesses. They will break down barriers, increase competition and give customers control over their own money.

Taken together we expect our remedies to deliver direct benefits to customers of between £700 million and £1 billion.”

In its final report published in August this year, the CMA announced measures aimed at ensuring that customers benefit from technological advances, and that new entrants and smaller providers can compete more fairly.

Further measures in today’s consultation include requiring banks to publish rates for small and medium-sized enterprise (SME) lending products and to develop tools to allow for easier comparison of SME banking products.

Responses on the 17 measures in the draft order are invited by 5pm on 23 December by email to retailbanking@cma.gsi.gov.uk or by post to:

Project Manager Retail banking market investigation Competition and Markets Authority Victoria House Southampton Row London WC1A 4AD

Source: CMA website.

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