The Financial Services Consumer Panel has responded to the Joint Regulatory Oversight Committee’s (JROC) proposals for the design of the Future Entity of UK Open Banking (the Future Entity). The Panel recognised a variety of risks posed by the Future Entity, including:
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Lenders could use open banking data to aggressively or inconsiderately take repayments from consumers, leaving them unable to meet essential living costs.
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Firms could misuse open banking data, and the strong insight it gives into consumer behaviour, to target unsuitable products at consumers.
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If firms do not have adequate protections, criminals may exploit this to steal highly valuable open banking data and thus expose consumers to harm.
However, the Panel recognised that open banking as the potential to benefit consumers and SMEs by giving them greater access to their financial data and improving competition in product and service offerings. To gain the benefits of open banking whilst mitigating against its ri
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