The Financial Conduct Authority (FCA) has now set out its vision for the Future Entity, the independent body that will carry forward the UK’s open banking standards. This is more than just a governance change; it’s a significant step in defining how the UK’s open banking ecosystem will evolve beyond its initial implementation phase towards a longer-term, sustainable model.
A Framework for the Future
The FCA’s design principles for the Future Entity bring welcome clarity:
- Independent and industry-led: a not-for-profit body with equitable governance
- Focused remit: concentrating on open banking while keeping the door open to open finance in the future
- Clear accountability: operating under FCA oversight, with an accountability pathway to HM Treasury
- Standards stewardship: responsible for setting and maintaining technical and operational standards, with regulatory oversight to ensure compliance
This structure ensures regulatory certainty while leaving room for innovation and market development. Importantly, the FCA confirmed that commercial open banking schemes will operate separately under their own governance, reducing the risk of remit conflicts.
From Oversight Committee to Single Point of Accountability
With the Joint Regulatory Oversight Committee (JROC) now disbanded, responsibility moves squarely under the FCA’s umbrella. While the transition has taken time, reflecting the complexity of balancing regulatory, commercial and technical priorities, the result is a single, clearer line of decision-making.
An Invitation to Co-Create
The FCA has committed to working closely with industry stakeholders, beginning with a series of workshops over the summer and autumn. These sessions will be central to shaping the Future Entity’s operating model and governance framework.
Our view is that this collaborative approach is essential. The UK’s open banking success has always rested on active engagement across the ecosystem – from banks and fintechs to technology providers and consumer groups. The Future Entity’s effectiveness will depend on continuing that tradition.
Why This Matters
For the UK’s open banking community, this is an opportunity to strengthen both trust and innovation. A Future Entity with a clear mandate, strong governance and direct accountability will help:
- Provide regulatory stability for existing participants
- Support interoperable, secure standards that can evolve with technology and market needs
- Lay the groundwork for open finance, enabling wider consumer and business benefits
Looking ahead
As the FCA moves into the co-design phase, the sector has a rare opportunity to shape the infrastructure and rules that will define the next stage of open banking. We look forward to contributing to that process and to ensuring that the UK retains its global leadership in financial data innovation.
