LONDON—The Future of Payments Review has published a report that calls on the U.K. government to implement a national payments vision and strategy, with the aim of simplifying the landscape over time.
Commissioned by the U.K. chancellor and launched in July this year, the report has been authored by Joe Garner, former CEO of HSBC UK and Nationwide Building Society, and saw contributions from more than 100 UK-based financial institutions and fintech firms, Fintech Futures reported.
The “strongest” feedback received through the review was a lack of vision and clarity of priorities regarding the U.K.’s payments landscape.
‘Billions’ Invested
According to the report, Garner stated that by considering the importance of payments to consumers and the economy, the “billions of pounds” being invested, and the “interdependent” nature of the sector, a top recommendation is that the U.K. government should provide high level guidance on priorities, so that both the regulators and the industry can align themselves towards achieving definitive outcomes.
Garner also pointed to two underlying issues – one being the lack of a consumer dispute resolution process for open banking transactions; and current commercial arrangements that seem to hamper the growth of open banking, Fintech Futures said.
To that end, the report recommends the government and the Joint Regulatory Oversight Committee (JROC) agree on a commercial model for open banking for it to survive in the long run, the report stated.
‘Optimistic’ About Innovation
“If these issues can be addressed, we are optimistic about the scope for innovation and believe that the UK can use open banking to capture a world leading position once again in these areas,” the report states.
The report also recommends developing an alternative open banking payment journey “to give retailers choice beyond card schemes” with merchants being hampered by the cost of taking card payments and a lack of alternatives, Fintech Futures added.
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