[6] The first real regulatory move to open banking came in 2015 when the European Parliament adopted a revised Payment Services Directive known as PSD2.
This was welcomed by fintech companies but banks were generally slow to agree to sharing the data for technical and security reasons as well as concerns for new competition.
Between 2015 and 2021, a number of countries enacted laws and regulations forcing traditional banks to provide API access to customer data.
[11] There is a risk of aggressive market practices or offering a customer more expensive products based on an analysis of openly-available financial data.
[12] He said that consumers could be exploited, either by new types of payday loans or the misuse of data and personal information that people have revealed online.
More than two years after the entry into force of the PSD2 provisions, which took place on 13 September 2019, the European Commission announced the commencement of the review procedure of the Directive.
[27] The information on the transfer of the initiative for further works and the implementation of the SEPA API Access scheme by the European Payments Council is also publicly available.
The starting point for the work on the scheme was PSD2 services provided by European credit institutions, which would remain free of charge for third parties.
[29] The new task force's work focuses on the standardisation of value-added services that credit institutions may make available to eligible third parties based on bilateral agreements or potential new payment schemes.
This transformation is driven by a combination of in-house technological advancements and strategic outsourcing, enabling these banks to innovate and enhance their offerings more effectively [36].
[37][38] On 4 January 2023, Chile enacted a law with the aim to establish a regulatory framework for fintech activity and create an open finance system that enables secure data-sharing.
[citation needed] Colombia has established a voluntary model for open banking,[39] with the Financial Regulation Unit (URF)'s goal being to foster public-private discussion.
[non-primary source needed] In June 2020, the rules for exchanging open data were applicable to all financial institutions – banks, fintechs, and companies authorised by the Comisión Nacional Bancaria y de Valores.
[47] Many of them offer financial apps that help users manage their finances; others are consumer credit firms who use open banking to access account information for affordability checks and verification.
[49] This consultation referenced a proposal by UK Finance (a trade association for the banking and finance industry), which had engaged with stakeholders to develop a blueprint for a new organisation (a 'Future Entity') to replace Open Banking Limited, which would serve the needs of the significantly larger number of financial institutions by enabling an Open Data and payments market.
In 2021, president Joe Biden issued an executive order indicating the administration's desire to begin rulemaking for Section 1033 of the Dodd–Frank Act.