UK Changing Banking Regulations

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UKChanging Banking Regulations

Lecturer

UKChanging Banking Regulations

TheUnited Kingdom in its budget last week outlined its desire totransform the retail banking through requiring open banking data. Inthis case, the banking industry will be required to share datathrough application programming interfaces (APIs) that enablesoftware applications to communicate and access data automatically(Salmon, 2015). Utilization of the APIs in banking would enableconsumers to have access to transaction, as well as other data, whichcan be shared with third party business entities thereby allowing forthe making of informed decisions regarding the financial services andproducts that are most appropriate and suitable for their needs.

Ofcourse, this has a far-fetched effect on the JP Morgan among otherbig financial service providers. It may be noted that the big bankswill be required to share their credit data with the alternativefinancial service providers. Further, they will refer the businessentities whose loan applications they turned down thereby allowingthe SMEs to have an opportunity to obtain the loans from otherentities. Needless to say, the data sharing would allow for anincrease in competition as small banks and the alternative sources offinance get opportunities to have more customers.

Bibliography

Salmon,J (2015). Government action on open banking data could transformindustry, says expert. Outlaw.Web Retrieved fromhttp://www.out-law.com/en/articles/2015/march/government-action-on-open-banking-data-could-transform-industry-says-expert/