The fourth version of the UK’s Open Banking Standard has been released by Open Banking Limited (OBL), marking the first major release since 2018.
Open Banking Standard version 4.0 includes mandatory updates to the security profile and international messaging standards, ISO 20022, as well as optional updates.
In April, OBL announced it was seeking views on the draft Open Banking Standard v4.0, with a view to publishing it as a final version by the end of June.
Marion King, OBL trustee, said the new standard has been developed “collaboratively with the entire ecosystem”.
Marion King, chair of Open Banking Limited
She added: “The Standard has laid the foundations for a thriving Open Banking ecosystem which benefits 9.79 million active users and is worth more than £4 billion to the UK economy.
“OBL will continue to maintain and update the Standard to ensure it is robust and able to support the future development of Open Banking.”
One of the mandatory changes made to version 4.0 is the uplift from FAPI 1.0 Implements Draft 2, which will be fully deprecated by the end of 2024, to FAPI 1.0 Advanced Final.
Version 4.0 also incorporates improved information flows to “facilitate provision of timely, definitive payment statuses and clear and consistent error messages”, which was an optional implementation requirement, driven by workstream 4 of the Joint Regulatory Oversight Committee (JROC) Open Banking roadmap.
There have also been updates to the read/write specifications to correct what OBL called “known issues”, which the OBL Technical Design Authority voted in support of.
Fiona Hamilton, OBL’s head of standards, said: “Key updates, including the FAPI uplift, ISO 20022 alignment and information flow changes, are all incredibly important to deliver the best possible experience for Open Banking users.”
“It was very encouraging to see widespread support for the changes and we are grateful for the time and effort across the whole ecosystem to support its successful development,” Hamilton added.
Chair of the OFA Nilixa Devlukia
“As the transition work unfolds, we will continue to maintain the Standard that underpins the UK’s Open Banking success, helping to deliver substantial benefits to users and the wider economy.”
The Department for Business and Trade has estimated the value of Open Banking and Smart Data schemes to the UK at around £28 billion.
Nilixa Devlukia, chair of the Open Finance Association, said the introduction of v4.0 is the result of “months of dedicated effort and collaboration across the ecosystem”.
“This latest version significantly advances Open Banking by aligning more closely with ISO standards, improving security, and incorporating enhanced payment statuses and error codes. We strongly support and encourage banks to adopt these new standards to drive Open Banking adoption and deliver the best customer experience,” Devlukia added.
