Open Banking Ltd
Open Banking Ltd (OBL) is the UK-based entity responsible for overseeing the implementation of Open Banking. It was established by the Competition and Markets Authority (CMA) to drive competition and innovation in financial services by enabling secure data sharing between banks and third-party providers (TPPs). Open Banking Ltd ensures compliance with UK Open Banking regulations and manages the technical framework that facilitates bank-to-bank data and payment services.
Applications
E-commerce:
Reduces fraud in online card payments by verifying the cardholder's identity
E-commerce:
Reduces fraud in online card payments by verifying the cardholder's identity
Advantages
- Enhanced security: Reduces unauthorised transactions by verifying that the genuine account holder is authorising the payment
- Enhanced security: Reduces unauthorised transactions by verifying that the genuine account holder is authorising the payment
Challenges
- User Experience: Additional authentication steps can cause friction and increase checkout abandonment
- User Experience: Additional authentication steps can cause friction and increase checkout abandonment
