January 2018 saw the launch of the CMA’s Open Banking regime in the UK, its first adoption anywhere on the planet. Open Banking was the central remedy in the CMA’s retail banking market investigation which was reported in August 2016. Open banking has the potential to transform retail financial services by facilitating the entry of new, digital competitors who are providing tailored advice to consumers and small businesses and bringing exciting and innovative applications to market. Open banking is now being contemplated or introduced in over a dozen jurisdictions worldwide and policymakers in UK and elsewhere are actively exploring how this approach could be applied in other sectors.
Adam Land is Senior Director of Remedies, Business and Financial Analysis at the Competition and Markets Authority.