Why Oh why are we still debating open banks in the UK?

Open banking requires urgency – No more debate, wrote John Glen, three years after opening a conversation as a city minister

In the UK, banking opens quietly changed the way millions of people manage their finances, from budgeting applications and smart savings to faster and safer payments.

In essence, open banking gives individuals and greater control businesses for their financial data by allowing safe access and sharing in various financial service providers.

Open Finance is the next step: Expanding these benefits outside the bank to include savings, investment, insurance and retirement, unlock innovation, increase transparency and help consumers and businesses both make better decisions to utilize their full potential of money.

As the Economic Secretary for the treasury and the city minister, I am responsible for open banking policies during the years of its formation.

Under my term of office, we launched the Joint Regulatory Supervisory Committee (JROC) to direct the transition of open banking from competition drugs to the framework of long -term rule that is commercially sustainable. But three years later, we are still debating the future of open and open financial banking.

It’s time to finish work.

The industry must embrace open banking

This is not a reflection on the sterling efforts of all those involved to date, nor is it a political point assessment. Apart from all good intentions, progress is too slow, and all stakeholders – government, regulators and industries – need to double their efforts with a laser focus on shipping.

Open banking has the power to become a public goods, and enormous commercial opportunities, enjoy cross -party support.

The ability to share data safely, with approval, can change services, sharpen competition and unlock growth. But good intentions now must give way to real change.

The financial industry has the responsibility to take advantage of this moment and lead. Data laws (use and access) have now passed the parliament, providing HM treasury forces needed to mandate participation, establish a framework, rules, and standards needed to support the next generation of smart data schemes.

The role of government is only to set game rules. Then for the industry to take the ball and run it.

The future of smart data in banking and finance must rely on commercially proper models.

We must move beyond the dependence on the mandate of regulations and build commercial incentives, allowing companies to charge fair and driven by the market for data and fire access, while protecting consumers and ensuring a flat playing field. Aligning incentives is very important to ensure meaningful participation and be led by the market.

This is where the newly launched Smart Data Group (SDG) can help. As a neutral industry organizer, SDG can coordinate the work needed to design, provide and operate smart data schemes in the future, not only in the financial sector, but also in the entire wider economy. From the initial scope to technical implementation and governance, SDG is a glue that unites the smart data ecosystem.

The time for discussion has passed. When Britain needs more growth than before, unlocking the economic value of data must be a national priority. SDG has been established to help make it happen, with speed, and on a scale.

Now is a moment to act. The government must be clear. The industry must step forward. And together, we must be aware of the full potential of sharing data in the financial sector and so on.

By John Glen MP is a former minister of city