UK Open Banking prepares for PSD2 by expanding products

The Open Banking Implementation Entity (OBIE) is expanding its functionality to cover all PSD2 products.

OBIE was set up by the Competition & Markets Authority (CMA) to enable customers to take control of their financial data and share it with organisations other than their banks.

In 2016, the CMA mandated the nine largest current account providers in Great Britain and Northern Ireland (the ‘CMA9’) to create the OBIE and work with it to build a common set of API standards that would allow regulated companies safe and secure access to their accounts with the explicit permission of the customer.

With the second Payment Services Directive coming into force in January, OBIE has been asked by the CMA9 and Her Majesty’s Treasury to create open banking standards for all payment account types covered by the regulation. Customers using credit cards, e-wallets and prepaid cards will also be able to take advantage of open banking services.

Imran Gulamhuseinwala, Trustee of the OBIE, said: “These enhancements should give even greater confidence to the FinTech community to seize the opportunity to participate fully in the financial services ecosystem.

“They will create standards for future dated, recurring and international payments as well as all the payment and product types covered by PSD2. These enhancements will maximise the benefits of open banking services for the customer. The OBIE will continue to work with the CMA, HMT, CMA9 and other stakeholders to drive this forward.”

The Bank of Cyprus recently integrated VASCO Data Security International’s DIGIPASS for Apps in order meet PSD2 requirements. The move enables the bank to take steps towards meeting the authentication requirements issued by the European Banking Authority (EBA) PSD2 regulation.

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