JROC to deliver vision for UK Open Banking in Q1 2023

An update on the work of the Joint Regulatory Oversight Committee (JROC) in shaping the future of Open Banking in the UK has revealed that the final report from the Strategic Working Group (SWG) has been delayed until January 2023, while a roadmap is “expected” in the first quarter. 

In a joint statement, HM Treasury, the Competition and Markets Authority (CMA), the Payment Systems Regulator (PSR) and the Financial Conduct Authority (FCA) have revealed their “emerging thinking” on the design of a future Open Banking entity. 

However, a further statement, due in the first quarter of 2023, will publicly set out the common authorities’ views and recommendations in relation to the design of the future entity, both during the interim regulatory state and once a long-term regulatory framework is in place, and the vision for Open Banking in the UK. 

The SWG, which is convened by the Committee and independently chaired by Bryan Zhang, co-founder and executive director of the Cambridge Centre for Alternative Finance at the University of Cambridge Judge Business School, is providing “extensive analysis” to reflect the range of stakeholder views it has gathered during a series of “strategy sprints” in recent months. 

Stakeholders have given their views on current gaps in Open Banking, potential short- and long-term solutions, and the structures required to further develop Open Banking and define a future roadmap. 

The statement issued today (16 December) confirmed that the SWG final report will be submitted to the Committee by January 2023, and “will be a critical input to JROC’s thinking”. 

In a post on LinkedIn, Jack Wilson, head of public policy at TrueLayer, said the announcement “looks bigger than it is”. 

“All the practicalities of what the future of UK Open Banking will look like are yet to be determined/ decided/ announced by JROC in Q1. And the final SWG report is delayed until January,” Wilson wrote. 

“The waiting continues, while a lot of Open Banking companies could do with some concrete indications.” 

In a statement on LinkedIn, the PSR said: “In the first quarter of 2023, the committee will publish a further statement, which will set out the common views of the authorities and our recommendations and is expected to include a roadmap.

“Open Banking has an important role in continuing to promote greater competition and innovation for the benefit of consumers, businesses and the wider economy, as well as maintaining the UK’s international leadership in this field. This includes the further unlocking of Open Banking payments to create greater choice between payment methods and enabling exciting opportunities for more efficient, tailored services.” 

In addition to unlocking Open Banking payments, HM Treasury, the FCA, PSR and CMA are prioritising “adopting a model that is scalable for future data sharing propositions”, and “establishing a sustainable footing for the ongoing development of the Open Banking ecosystem”. 

Click here to read the full statement from HM Treasury, the FCA, PSR and CMA.