UK Takes the Lead on Open Banking
September 4, 2018
Becomes the first and only region with open and active Open Banking APIs
The UK has today established its status as the world leader in Open Banking following confirmation that all members of the CMA9 have now executed payments using their Open Banking APIs.
The CMA9 is a group of the nine largest banks and building societies in Great Britain and Northern Ireland. The payments were made possible by open banking platform provider Token.io Limited, making the UK the first and only market with a fully functioning open banking infrastructure.
Token was invited to participate by the Open Banking Implementation Entity (OBIE), which was set up by the Competition and Markets Authority (CMA) in 2016 to deliver Open Banking.
Imran Gulamhuseinwala OBE, Trustee of the OBIE, says: “This is a tremendous achievement to be the first to market with active, open APIs in payments – moving customers ever nearer to reaping the benefits of innovative products and services. The rest of the world is watching and learning from our experiences and I firmly believe in time will see how access to extraordinary new services will drive economic dynamism.”
Token was able to bring together each bank’s implementation of the Open Banking APIs and reduce complexity for developers by delivering a single, unified platform for customers to connect to. Token’s self-serve testing approach also helped banks to validate that their implementation of the flexible specification appropriately supported functionality for third party providers.
Catherine McGrath, Managing Director of Retail Banking at Barclays comments: “Open Banking presents an exciting opportunity to evolve the way we currently bank and put our customers in charge of their data, enabling them to do exciting things with a broad range of parties. That is why it is great to be working together with Token and other third party providers to offer consumers better ways to manage their money.”
Matt Cox, Head of Open Banking at Nationwide, comments: “Open Banking will revolutionise the way people do their day-to-day banking and manage their finances. Token is at the forefront of this innovation and we’re excited to see what they, and other third party providers, can do with Open Banking.”
Russell Saunders, Managing Director of Global Payments at Lloyds Banking Group, adds: “Innovation in the market that gives consumers greater choice, control and transparency should be embraced, and Open Banking is a significant opportunity for the industry to work together to shape the future of banking. Lloyds Banking Group is working with Token and other third party providers to enable consumers to benefit from Open Banking.”
Marten Nelson, Co-founder of Token, comments: “The UK is paving the way for an API-led economy and we are delighted to have played such a significant part in giving end users simpler banking that they have more control over. Open Banking payments are faster than direct debits, more secure than credit cards and provide a richer user experience for consumers and businesses, so this is a huge achievement for the whole banking ecosystem.”
Via its universal open API banking platform, Token will enable banks, merchants and other third party providers (TPPs) to connect to any bank in the EU for payments and account information requests, thereby solving the integration pain being felt across the industry caused by multiple, proprietary bank APIs.
Visit Token at Sibos in Sydney, Australia 22-25 October on stand DZ05. Contact the team at email@example.com to arrange a meeting.
The CMA9 consists of AIB Group (UK) plc trading as First Trust Bank in Northern Ireland, Bank of Ireland (UK) plc, Barclays Bank plc, HSBC Group, Lloyds Banking Group plc, Nationwide Building Society, Northern Bank Limited, trading as Danske Bank, The Royal Bank of Scotland Group plc, and Santander UK plc (in Great Britain and Northern Ireland).
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