The UK’s Open Banking Implementation Entity has now implemented version 3.0 of the Open Banking standard. The nine commercial clearing banks, known as the “CMA9”, are required to adopt version 3.0 and related functionality over the next 6 months, to 13 September 2019. The CMA9 manage over 95% of all UK business current account providers with accounts online.
The CMA9 banks are mandated by the Competition and Market Authority to make their customer’s bank accounts available to authorised third-party providers like CreDec. Obviously, access to bank accounts can only be given with the customer’s permission.
Version 3.0 also marks the beginning of future dated payments. This is part of the Open Banking payment initiation services, of which CreDec is an authorised provider.
The Open Banking competition remedy marks a fundamental change in UK payments and financial services.
Version 3.0 of the Open Banking standard, also coincides with the start of a new regulatory technical standard. It’s designed to increase the security arrangements protecting bank accounts and safeguarding customer’s credit balances. It provides for stronger Personal Security Credentials. This includes the secure log-in and user information issued by banks to each individual authorised user of business and personal online bank accounts.