As part of efforts to facilitate open banking in the U.K., the Financial Conduct Authority (FCA) is outlining its vision for a new standard-setting body it plans to create in partnership with the financial industry.
The proposed entity would set core standards for open banking services, including common standards for application programming interfaces (APIs), monitoring API performance and ensuring compliance. However, it would not have enforcement powers; those would likely remain with the FCA.
The new body will be a non-profit with an independent board, funded “on an equitable basis from its users and beneficiaries,” the FCA said, though it did not define a specific revenue model. It plans to discuss details with the industry.
While common standards aim to ensure a minimum service level in open banking, commercial ventures may “innovate above these standards to provide premium services,” the regulator noted.
The FCA intends to hold workshops with industry firms in the coming months on establishing the standards setter and will provide an update by year-end.
“This is the next step in realizing our vision of a more innovative, safe and competitive payments sector, which embraces technological change to better serve people and businesses,” said Matthew Long, director of payments and digital finance at the FCA, in a release.
“However, we can’t realize this future alone. Our engagement and support from industry continues to play a vital role in the future of open banking, as we build on the momentum we’ve seen in the past six months,” he added.