It's been a busy week in the mobile banking world.
Open banking and the CMA
The Competition and Markets Authority (CMA) released its report suggesting a number of changes to the retail banking industry. Its proposals though have been questioned by leading consumer groups such as Which?, with doubts as to whether they go far enough.
One of the key proposals is what has been termed the "tech revolution". The idea is, in theory, simple. The "Open Banking programme" will, where an individual has consented, require banks to share that individual's information with other third party app providers so that the individual is able to see which bank is best suited to them given their patterns of spending and borrowing.
It's essentially another move aimed at freeing up the retail banking market and encouraging switching. Perhaps surprisingly recent figures have suggested this is in fact slowing, despite moves such as 7-day switch launched in recent years with the same aim - 'make the market more competitive by getting people moving'.
Consumer groups seem to be suggesting that, in their view, these new changes won't be the move that does this, and we're clearly yet to see the nature of these hoped for comparison services needed on the back of this initiative?
Elsewhere, Mondo (soon to be renamed due to an IP dispute) has secured a restricted banking licence. This means that it will now be able to hold customers' money for the first time, and test products with customers. Following hot on the heals of other new entrants to the market, Atom Bank, Tandem and Starling, Mondo is aimed solely at the current account market and wants to bring real change to service delivery. Watch this space.
Under what the CMA calls its "Open Banking programme", banks will be required to share their customer data with third-party app providers.