The Open Banking Implementation Entity (OBIE) has published the next standard of open banking to incorporate the City regulator’s changes to the 90-day reauthentication rule.
The changes mean that customers do not need to give their details to their bank every 90 days and instead only need to reconfirm consent with their third-party provider every 90 days.
The OBIE said its new standard also contains transaction risk indicators to help these third-party providers understand the purpose of the payment, for example, gambling, which will enable improved risk assessment of open banking payments.
The open banking organisation said it has also adopted more customer-friendly language like using ‘reconfirm’ rather than ‘reconsent’ to improve customer awareness and understanding of open banking technology.
The latest standard is the last one under the Competition and Markets Authority (CMA)’s revised roadmap for the progress of the data-sharing initiative.
“After five years, we are proud to have reached the milestone of delivering version 3.1.10 which now contains all the content required to complete the revised roadmap,” Fiona Hamilton, head of standards at the OBIE, said in a blog on its website.
“The standard has laid the foundations for a thriving open banking ecosystem with more than five million users.
“We now look forward to the next phase in the evolution of the standard to support future regulatory changes and market-driven requirements.”
In November, the Financial Conduct Authority (FCA) announced it was going to scrap the 90-day reconfirmation rule for open banking, and experts welcomed this change.
Last month, the CMA said that a new joint regulatory oversight committee led by the FCA and the Payments Service Regulator, will draw up proposals for the design of a new open banking entity by the end of the year.