A new open banking working group will be established by the end of the month, with the Financial Conduct Authority (FCA) as chair.

A new update from the Joint Regulatory Oversight Committee (JROC) has outlined an “ambitious programme of work to take forward recommendations for the next phase of open banking in the UK.”

This will include establishing a new working group to design the role, structure and funding of a future open banking entity as part of the transition away from the Open Banking Implementation Entity.

Read more: FCA updates on open banking progress

The working group will report to the JROC by the end of September 2023 and the JROC will publish its views in an update towards the end of 2023.

A separate working group will be established this month to look at variable recuring payments (VRP). This group will be chaired by the Payment Systems Regulator (PSR).

“Now that we have a roadmap in place to deliver on the next phase of open banking, it’s vital that we work collaboratively and at pace to progress the key priorities we identified,” said the JROC’s co-chairs, Chris Hemsley, managing director of the PSR; and Sheldon Mills, executive director of consumers and competition at the FCA.

Read more: OBL will continue to lead open banking transition

“These dedicated workstreams, including the two new working groups on VRP and the future entity, will make sure the correct foundations are in place for open banking to grow in a safe and sustainable way.”

The JROC has tasked Open Banking Limited to lead and co-ordinate workstreams on a number of key themes deemed to be essential to the future of open banking in the UK.

These themes include: levelling up availability and performance of open banking; mitigating the risks of financial crime; developing proposals for dispute processes; and improving information flows to third party providers and end users.

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