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Five Out of Nine Banks Not Ready For Open Banking Deadline

  • 21/12/2017
  • Jane Bray

The banks have been given extra time to be fully set up for Open Banking, a system allowing customers and small businesses to use their payment history to get better deals.

The UK's nine biggest current account providers were told by the Competition and Markets Authority (CMA) to be ready to start on 13 January 2018.

Some banks however, haven’t quite managed to meet the deadline. A maximum of six extra weeks preparation time has been given to Barclays, Bank of Ireland, RBS and HSBC by the Competition and Markets Authority (CMA).

Santander-owned Cater Allen, a private bank, will miss the deadline by a year, as it needs to rebuild its IT system. Allied Irish Bank, Danske, Lloyds Banking Group and Nationwide will be ready to start on time.

Imran Gulamhuseinwala, trustee of the group commissioned to implement Open Banking, said that "in time" the regime could "fundamentally change how we manage our money".

What is Open Banking?

Your financial data is valuable. For example, a loan provider would be keen to know exactly when you or your business goes into the red each month.

Open Banking enables personal customers and small businesses to share their data securely with other banks and with third parties, allowing them to compare products on the basis of their own requirements and to manage their accounts using regulated third parties to provide new and innovative payment services.

The CMA claims this will be revolutionary for customers and businesses going forward.Five of the nine banks ordered to be ready for a banking "revolution" by mid-January will miss the deadline