{"id":329835,"date":"2025-12-22T13:40:07","date_gmt":"2025-12-22T13:40:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/329835\/"},"modified":"2025-12-22T13:40:07","modified_gmt":"2025-12-22T13:40:07","slug":"fca-issues-progress-report-on-open-banking-financial-services","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/329835\/","title":{"rendered":"FCA Issues Progress Report On Open Banking – Financial Services"},"content":{"rendered":"

Wendy Saunders\u2019s articles from Lewis Silkin are most popular:<\/p>\n


\n in United Kingdom
\n in United Kingdom
\n with readers working within the Aerospace & Defence industries <\/p>\n

Lewis Silkin are most popular: <\/p>\n


\n within Cannabis & Hemp, Law Practice Management and Criminal Law topic(s) <\/p>\n

The FCA has published a progress report<\/a> on open banking which says
\nthat open banking in the UK is growing rapidly.<\/p>\n

According to the FCA, latest industry figures show there are
\nmore than 16 million users now benefiting from the service. The
\nnumber of open banking payments has increased by 53% year-on-year,
\nreflecting a significant shift in how consumers and businesses
\nmanage their finances.<\/p>\n

It seems that a key driver of this transformation is the rise of
\nvariable recurring payments<\/a> (VRPs), which now
\naccount for 16% of all open banking transactions. VRPs allow
\nconsumers and businesses to set up flexible, automated payments
\ntailored to individual needs, offering greater control compared to
\ntraditional direct debits.<\/p>\n

In 2025, the FCA made seamless account-to-account payments a
\nmajor focus, working closely with industry leaders to accelerate
\ninnovation. It says it has seen significant progress towards this
\ngoal.<\/p>\n

Before the end of 2025, the UK Payments Initiative (UKPI), a new
\ncompany formed by 31 firms to enable VRPs, will be set up. This is
\nanother new way to open up access to making flexible payments for
\nconsumers and businesses. Momentum is building across the market,
\nwith other organisations developing their own VRP schemes and
\ntransaction testing underway.<\/p>\n

UKPI will operate a commercial VRP scheme, enabling consumers to
\nmake flexible, recurring payments to businesses such as utility
\nproviders. These services are already helping customers with
\nirregular incomes to manage payment schedules more effectively. The
\nidea is that this scheme will enable a larger group of customers
\nand businesses to access these services.<\/p>\n

The first live payments under the UKPI scheme are expected in
\nthe first quarter of 2026, signalling the start of a new era for
\npayments and open banking in the UK.<\/p>\n

Regulatory changes<\/p>\n

The FCA will continue to support industry in the rollout of
\nVRPs. Looking ahead, the sector is preparing for regulatory
\nchanges.<\/p>\n

The Treasury is expected to introduce legislation in 2026 that
\nwill grant the FCA new powers to set open banking rules, and it
\nplans to consult on new rules for the long-term regulatory
\nframework before the end of 2026. This aims to foster a stable
\nregulatory environment and a competitive and innovative market.<\/p>\n

The FCA wants the ecosystem to be resilient, secure and
\nresponsive to new challenges \u2013 like improving reliability,
\nerror messaging, and ensuring adequate consumer protections.<\/p>\n

The FCA has set out its strategic approach<\/a> to the new rules which
\nincludes five key goals:<\/p>\n


\nAccessible and valuable to consumers
\n
\nEnsures safety and security
\n
\nScalable and responsible
\n
\nInteroperable; and
\n
\nPromotes competition and innovation. <\/p>\n

The FCA says that for industry, the expansion of open banking is
\nunlocking new opportunities for competition, efficiency and
\ninnovation. This helps to drive better services, sustainable
\ncommercial models and a more dynamic payments market.<\/p>\n

The content of this article is intended to provide a general
\nguide to the subject matter. Specialist advice should be sought
\nabout your specific circumstances.<\/p>\n","protected":false},"excerpt":{"rendered":"Wendy Saunders\u2019s articles from Lewis Silkin are most popular: in United Kingdom in United Kingdom with readers…\n","protected":false},"author":2,"featured_media":15222,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[59,57,58,50,56,54,55],"class_list":["post-329835","post","type-post","status-publish","format-standard","has-post-thumbnail","category-united-kingdom","tag-gb","tag-great-britain","tag-greatbritain","tag-news","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/329835","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=329835"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/329835\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/15222"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=329835"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=329835"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=329835"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}