What are the new open banking rules in the UK?
The latest open banking rules in the UK stem from the JROC’s April 2023 roadmap, which set out priorities for the next phase of open banking. Key changes include the rollout of Variable Recurring Payments (VRPs) beyond sweeping, the establishment of a new industry governance body to replace Open Banking Ltd, and requirements for banks to improve API performance and reliability standards.
What are Variable Recurring Payments and why do they matter?
Variable Recurring Payments (VRPs) allow consumers to authorise third parties to make a series of payments from their bank account, with variable amounts and timing — without needing to re-authenticate each time. Unlike Direct Debits, VRPs give consumers more control and can be cancelled instantly. The JROC has identified commercial VRPs (beyond sweeping between a person’s own accounts) as a priority for 2024–25.
What is replacing Open Banking Ltd in the UK?
Open Banking Ltd, the OBIE, is being wound down and replaced by a new Future Entity — a commercially sustainable governance body to oversee open banking standards. The JROC is overseeing this transition, with the new body expected to be funded by the open banking ecosystem rather than solely by the nine CMA-mandated banks. The transition reflects the maturity of the market and the need for broader industry ownership.
Open Banking in Practice: The JROC’s 2023 roadmap also called for improvements to the open banking premium API tier, which would allow banks to offer enhanced API services to TPPs on commercial terms. This could enable richer data sets and faster payments. For businesses and developers, these changes represent a significant expansion of what open banking can do. Read our coverage of the JROC roadmap on openfuture.world.
FAQ
When will Variable Recurring Payments be available to consumers?
Commercial VRPs are being rolled out in phases from 2024; sweeping VRPs between a person’s own accounts are already available with some providers.
Will the new open banking rules affect my existing open banking connections?
Existing connections remain valid; the new rules primarily affect how providers build and price their services, not day-to-day consumer consent.
What is the UK’s open banking Future Entity?
The Future Entity is the new governance body replacing Open Banking Ltd, designed to be commercially sustainable and represent the wider open banking ecosystem.