NEW LAWS coming into force in January will give consumers greater control over their bank data, the Treasury has announced.
A new regulatory regime is to be introduced for fintech firms, which the government says will allow users to manage all of their finances at the touch of a button. Fintech firms will have the ability, at the request of the individual consumer, to access data from all of the person’s bank accounts.
“Thanks to the changes we’re making, new fintech firms can enter the market and offer innovative and transformative banking services that are tailored to meet people’s needs,” said Stephen Barclay, economic secretary to the Treasury.
The changes stem from the EU’s second Payment Services Directive, and the Treasury has suggested they will drive further innovation within the fintech market.
This could include consumers having the ability to manage all of their accounts from a single app, helping people to budget more effectively and avoid unnecessary overdraft charges by moving money between accounts as and when needed.
Some fintech firms have argued that they are already offering services like this.
“Bud have built a technology platform that allows users to view and interact with all of their financial services in one place,” said Alan Walsh, head of network and partnerships at Bud. “The Bud platform is being licensed by banks allowing them to take full advantage of [this legislation] and address customers’ ever-changing needs.”
The Payment Service Regulations will also result in a series of other significant changes from 13 January 2018, including bans on certain charges imposed when spending using a credit or debit card.