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Western EuropeSeptember 16 2021

The hurdles ahead for open finance in the UK

As the OBIE seeks to widen the initiative to include ‘open finance’, it is important to consider the dangers and drawbacks.
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The hurdles ahead for open finance in the UK

Open banking in the UK grew out of a Competition and Markets Authority (CMA) report on the state of the country’s retail banking market in 2016. It found that incumbent banks did not have to compete hard enough for new clients, whereas newer banks found accessing the market and building their businesses much more difficult.

The CMA recommended ‘open banking’ in a bid to tackle this problem; however, take-up has not quite been what was initially expected.

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