Innovate Finance calls for better transparency in Open Banking

Innovate Finance Open Banking Image credit: Shutterstock

The UK’s fintech industry body Innovate Finance has called for the removal of obstacles and more transparent governance in the Open Finance sector.

Issues with the accessing of banking data still remain says a report from Innovate Finance and Boston Consulting Group, citing issues such as outages, bad availability and API request quotas.

Janine Hirt, CEO, Innovate Finance, said: “Open Banking has been a catalyst for innovation in the financial services sector. This is especially the case in the UK where competition and market regulation has resulted in more empowered customers supported by a booming fintech ecosystem.”

Regulation of open banking needs to be “more inclusive and transparent” such as a wider push of variable recurring payments technology along with a framework that is “incentive “.

The UK’s fintech ecosystem is in need of a new framework that centres on data ownership and portability say the open banking report.

Hirt added: “As a result of its efforts, the world has looked to the UK as a pioneer and vanguard in Open Banking. However, the UK’s leadership is increasingly being challenged as other countries threaten to leapfrog the UK’s position as an early adopter.”

In its annual report earlier this year, Innovate Finance found that the UK had retained its European dominance despite less investment in 2022.