Updates on Open Banking Future Entity and framework in Mansion House speech

Open Banking Limited (OBL) has been selected to “convene and coordinate” the next stage of Future Entity activity, as set out by UK Chancellor Rachel Reeves in her Mansion House speech, in which there was also an update on a regulatory framework for Open Banking.

The updates were provided in HM Treasury’s (HMT’s) ‘Modernising Payments Services Regulation’ consultation, as part of a package of Mansion House reforms.

The Future Entity is defined in the consultation as “a not-for-profit body responsible for setting common Open Banking standards, taking on the role currently fulfilled by Open Banking Limited (OBL)”.

The Financial Conduct Authority appointed KPMG to conduct an independent assessment into a future Open Banking standards-setting body, the results of which were published earlier this year.

Following that, OBL has been chosen to “convene and coordinate the next phase of establishment activity”.

The HMT consultation stated: “Industry has since mobilised around this work, with positive momentum towards establishing a standards setting body ahead of any future legislative framework.”

There was also an update on Open Banking’s transition to a Long-Term Regulatory Framework, as established in the National Payments Vision when it was published back in 2024.

In the NPV, the government set out its “ambitions” for the growth of Open Banking, and its key role in supporting the development of account-to-account payments, also known as Pay by Bank.

In the Chancellor’s Mansion House speech this week, the government “committed to lay a statutory instrument under the Data (Use and Access) Act 2025 by the end of 2026 to deliver this framework”.

Henk Van Hulle, chief executive officer of OBL, said: “This marks an essential milestone in the evolution of the UK’s Open Banking ecosystem. Industry are working to build a framework that is fit for the future, and progressing the matters under consultation will help reinforce the progress and momentum we are seeing.

“Open Banking has transformed the way millions of consumers and businesses manage and move money every day. As adoption continues to grow, so should the regulatory framework to provide greater clarity, support sustainable commercial models and create the right conditions for continued innovation and competition.”

He confirmed that OBL will engage closely with HM Treasury, the FCA and industry as the consultation develops.

“A proportionate, future-focused framework will help unlock the next generation of Open Banking services, strengthen the UK’s leadership in digital finance and provide a strong foundation for the wider ambitions of Smart Data,” said Van Hulle.

Open Banking Limited’s chief executive officer Henk Van Hulle is speaking at Open Banking Expo UK & Europe on 13-14 October in London. Check out the speaker lineup and agenda, and register to attend here.