THE IMPLEMENTATION of Open Banking is improving, but banks still have some way to go before meeting the recommended standards, according to a new report from Growth Street.
The peer-to-peer business lender has analysed figures from the Open Banking Implementation Entity (OBIE) regarding its API downtime monitoring tool.
Its research found that just three in 12 banks achieved at least 99.5 per cent availability in the second quarter of this year. The average availability across all 12 banks was 95 per cent.
During downtime, Open Banking customers are unable to access some integration features including the viewing of borrowing options from other financial institutions.
However “things are improving”, according to Growth Street, which said that nine out of the 12 banks improved their Open Banking availability in the second quarter.
In the first quarter of the year, RBS was the only bank to have reached the 99.5 per cent availability target.
However, by the second quarter of 2019, HSBC and Ulster Bank also improved their availability to meet OBIE standards.
Quarter-on-quarter, the Bank of Ireland saw the most improved performance, but it still falls behind the OBIE availability benchmark.
The deadline for implementing the Payment Services Directive II (PSD2), which enforced Open Banking standards, was 14 September.
Growth Street also said that 70 per cent of direct borrower applicants in the first quarter of 2019 attempted to use Open Banking as an alternative to supplying bank statements, which it said showed “readiness to adopt the technology.”