The rule that FinTechs must ask permission every 90 days to continue to access customer account data has been scrapped.
In Brief:
FinTechs no longer have to ask for permission every 90 days to continue to connect through open banking.
This will impact payment institutions, e-money institutions and more.
The FCA has outlined the payments sector as a priority in its 2020/21 Business Plan.
What does this mean?
The FCA’s priorities are to make sure “customers transact safely with payment firms; payment firms meet their regulatory obligations while competing on quality and value; and consumers and SMEs have access to a variety of payment services”.
The move will remove a common friction point FinTechs like e-money institutions and personal finance management (PFM) apps have had to deal with as customers “drop off” from the re-authentication.
