What is the CMA and what does it do in banking?
The Competition and Markets Authority (CMA) is a UK government body responsible for promoting competition and preventing anti-competitive practices across all sectors, including banking. In banking, the CMA is best known for its 2016 Retail Banking Market Investigation, which led to the open banking mandate requiring the nine largest UK current account providers to share customer data via standardised APIs with authorised third parties.
What was the CMA’s open banking order and what did it require?
The CMA’s 2016 open banking order required Barclays, HSBC, Lloyds, NatWest, Santander, Nationwide, Danske Bank, AIB Group UK, and Bank of Ireland UK to implement standardised open banking APIs by defined deadlines. This was the foundation of the UK’s entire open banking ecosystem. The CMA set the standards, Open Banking Ltd (OBIE) built the technical infrastructure, and the FCA supervised the regulated providers using the APIs.
What role does the CMA play in open banking today?
The CMA continues to monitor compliance with the open banking order and has the power to enforce against banks that fail to meet API performance standards. As open banking matures, the CMA’s role is being partially handed over to the JROC and the new Future Entity (the replacement for Open Banking Ltd). The CMA retains oversight of competition in retail banking more broadly, including reviews of current account switching and SME lending.
Open Banking in Practice: The CMA’s 2016 mandate was far-reaching: it was one of the first government-mandated open banking frameworks in the world and inspired similar initiatives in Australia, Brazil, and the EU. The CMA’s approach — focusing on mandating access rather than just publishing rules — is credited with accelerating UK fintech adoption. Read our full history of UK open banking on openfuture.world.
FAQ
What is the CMA order for open banking?
The CMA order requires the nine largest UK banks to maintain open banking APIs and allow FCA-regulated TPPs to access customer data with consent — it is legally binding.
Can the CMA fine banks for poor open banking API performance?
Yes — the CMA has enforcement powers under the open banking order and can take action against banks whose API performance falls below required standards.
Is the 1033 rule the same as the UK CMA order?
No — the 1033 rule is a US open banking regulation from the CFPB; the UK equivalent is the CMA order, which preceded it by several years.