LONDON—The U.K.’s new Open Banking rules, which allow fintechs to branch into mainstream banking, are being held up as big banks delay making the changes.
According to Reuters, six of the nine banks that have to open up their data so fintechs can go after their customers with products and services, asked the regulator in the U.K for more time implementing the Open Banking rule. The deadline was Jan. 13, but the banks want an extension.
Fintech companies in U.K. told Reuters that because of the delay, they have had to put their plans on hold or remove them for good.
“We have decided to postpone our Open Banking implementation until all the banks can prove they have … all the required data available,” said Steve Tigar, CEO of app Money Dashboard, in an interview with Reuters.
Of the nine banks, Lloyds, Dankse Bank and Allied Irish Banks rolled out all the tech they needed in order to enable data sharing with Fintech companies. Of the six financial institutions seeking an extension, some are hoping for a few weeks, while others want as long as a year, noted Reuters. Royal Bank of Scotland, HSBC, Barclays, Santander U.K., Bank of Ireland and Nationwide Building Society all have inquired for more time to make the necessary changes.