Open Banking Limited (OBL) has published two data collection frameworks[1] on the themes of ‘Levelling up availability and performance’ and ‘Mitigating the risks of financial crime’.
This marks the completion of the first two deliverables under the four themes that OBL was asked to consider by the Joint Regulatory Oversight Committee[2] (JROC) in its April 2023 publication Recommendations for the next phase of open banking in the UK[3].
This also aligns with the findings that the Strategic Working Group[4] published in February 2023, where there was broad support from ecosystem members to address these gaps.
Levelling up availability and performance
The collection of API data is a key step forward in developing an ecosystem where open banking API availability and performance is consistently high across all Account Servicing Payment Service Providers (ASPSPs).
The data will give insight on how often outages happen and provide OBL the opportunity to investigate whether further clarification or changes to the API standards are needed. The framework utilises a four phased approach to the delivery of the required data metrics over time, based on the depth and complexity of the requirement.
The objective is to support consumers and businesses access to high-performing and reliable services that enhance user experience and continue to build trust in the ecosystem. Enhanced reporting based on industry data will also provide transparency on the levels of confidence in API availability and performance across the ecosystem.
Mitigating the risks of financial crime
A comprehensive evidence base on financial crime in open banking is key to enable the ecosystem to scale and evolve safely. This new framework enhances financial crime reporting, increasing understanding of the level of fraud occurring within the open banking channel.
Specifically, building on existing reporting requirements, the framework will collect data on the total open banking payments by volume and value, and the total open banking fraud volume and value each on a monthly basis.
Insights from the framework will also inform the design of improved intervention tools, helping effectively mitigate risks to ensure consumers are safe. Focusing on fraud data is a good first step, and we look forward to the outcomes of OBL’s consideration on the aggregation of broader financial crime data.
Next steps
The OBL will undertake the first data collection by relying on the voluntary submissions from third-party providers and ASPSPs. The submissions received under these frameworks will be shared with the PSR[5] and the FCA as co-chairs of the JROC. The findings will support our policy thinking, including considerations on potential changes to reporting requirements and if necessary, further consultations.
The success of this project – and addressing the gaps as identified in the SWG report – is dependent upon OBL receiving high quality data from a wide range of firms, and we actively encourage firms to participate by submitting their data.