The Open Banking movement How are Open Banking regulations evolving across the world?
The Open Banking Movement is chang- ing the way that products and services are being consumed across the world. The regulations emerging in different countries differ due to varied govern-
mental initiatives, with come countries having clear regulations and others merely frameworks or industry guide- lines in place. The belowmap shows the different approaches to Open Banking European Union Open Banking was initiated in the EU in 2015 known as the Pay- ments Services Directive (PSD2) but requirements were vague so a single standard has been difficult to impose
on a global scale, showing how the movement is developing in the forms of new legislation and emerging industry standards.
Australia
United Kingdom
Australia was due to trial its Con- sumer Data Rights (CDR) act with the big four banks in February 2020 but the deadline was recent- ly revised to July 2020 . The act will initially focus on transaction data, but is likely to broaden out into other industries such as energy and telecommunications
The UK is considered to be leading the way in Open Banking, after the Open Banking Standard was imple- mented in January 2018. Lending- Metrics’ OpenBankVision (OBV) can provide you with 90 days statement data for free - find out more
Japan In 2017, the Japanese Banking Act introduced a framework to encour- age at least 80 banks to open APIs by 2020 with a focus on improving operational efficiencies
New Zealand
United States
Open Banking is being led in New Zealand by two major banks and two fintech companies in an effort to reduce credit card transaction fees to 0%
Whilst there is no government-spon- sored Open Banking policy in the US, several federal agencies have issued guidelines in response to the industry-led approach which leans toward open API business models in an effort to fight back against insecure screen-scraping practices
Sources: pingidentity.com, finextra.com
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