To ask Mr Chancellor of the Exchequer, with reference to paragraph 4.3.2 of the Open Banking Standard report published in February 2016, what assessment the Government has made of the (a) cyber security, (b) data protection and (c) fraud risks an open banking environment introduces.
Answered on
8 September 2016
The Open Banking Working Group was created at the request of the government to explore options for allowing customers to use their bank data in a safe, secure and efficient manner. The Group published its report in February 2016. The conclusions reached represent the views of the Working Group and are not government policy.
Subsequently, the Competition and Markets Authority (CMA) issued the final report of its investigation into retail banking on 9 August 2016. As part of this, the CMA requires nine leading UK banks to create an open API (Application Programming Interface) to allow access to customer account information as set out in the revised Payment Services Directive (PSDII), which will come into force in January 2018. Informed consent, data protection and cyber security are key considerations in the PSDII, and the government will be consulting on the transposition of this directive shortly.