As open banking continues to reshape traditions in the financial landscape, staying abreast of regulatory updates and policy changes is crucial. At Yapily, we’re committed to keeping you informed so you stay ahead of the curve.
This article delves into recent pivotal developments in the UK and EU, highlighting their impact on the open banking ecosystem.
JROC’s Decisive Steps for Open Banking’s Future
Recently, the UK’s Joint Regulatory Oversight Committee (JROC) made significant progress in the open banking domain. Just before Christmas, JROC’s update outlined advancements in key work streams: levelling up, fraud prevention, dispute management, information flows, and non-sweeping Variable Recurring Payments (VRP).
Crucially, JROC is poised to unveil its decision on the design of a future governing entity by the end of Q1. This decision is pivotal in shaping the regulatory framework and governance of open banking, ensuring a balanced, effective, and inclusive financial ecosystem.
CVRP: A New Chapter in Open Banking
December saw the Payment Systems Regulator (PSR) release the commercial VRP (cVRP) blueprint, setting the stage for a Q3 2024 pilot. This ‘Phase 1’ is strategically focused on lower-risk scenarios across regulated financial services, utilities, and government sectors.
The PSR’s consultation, concluding on February 2nd, discusses proposals pivotal to the pilot’s success: waiving Faster Payment fees to minimise costs, mandating CMA9 participation, and establishing long-term frameworks. This move marks a significant step in enhancing open banking’s utility and accessibility.
The EU’s Progressive Stance on Open Banking
In the EU, the AML Package and Instant Payments Regulation are advancing rapidly, with major developments expected in the first half of the year. The AML Package notably excludes AISPs from its scope, maintaining AML/CFT obligations for PISPs.
The Instant Payments Regulation, meanwhile, anticipates a requirement for Eurozone banks to accept Instant Payments around December 2024, with the capability to send them following nine months later. These regulations signify a major leap in streamlining and securing financial transactions across the EU.
Stay tuned with Yapily for more updates and insights, ensuring you’re always at the forefront of open banking regulations and policies. Speak to one of our open banking experts today to see how we can support you.
