Open banking
SIR – The Competition and Markets Authority’s Open Banking remedy (report, 6 February) is a groundbreaking initiative intended to help consumers and small businesses get a better deal from the financial services industry. As the work of the implementation entity enters a new phase it is worth reflecting on lessons learnt.
The CMA required the UK’s largest banks to create the Open Banking Implementation Entity (Obie); however, their design was flawed. It was not permitted to operate a normal board with independent nonexecutive directors, and the contractor-only workforce model prevented basic HR practices designed to ensure workforce welfare.
Despite these constraints I am incredibly proud of what the Obie team achieved. Their dedication has made the UK the global leader in open banking. Disruptive change takes time, but already 700 firms and more than five million users are already using open banking products. Even HMRC is saving the public purse tens of millions of pounds by using open banking payments.
Following a change in the law in 2020, I was able to transition the Obie from a contractor-only workforce model to a permanent employee model. This led to a dramatic improvement in workforce wellbeing. An employee engagement survey found that 97 per cent of the workforce agreed they were treated with respect (of which 47 per cent strongly agreed that they were treated with respect).
I have accepted that, under my leadership, management did not get everything right and some mistakes were made. I have always rejected the personal allegations made against me and successive reviews have found them to be without any substance. The wellbeing of the Obie staff and the future of the open banking project have always been my priorities. My decision to step down last autumn reflected my wish to see someone else take the organisation on to its next phase. I welcome the forthcoming Baker Review, which will draw lessons from the CMA’s design and oversight of the open banking entity for the benefit of their future pro-competition remedies.
Imran Gulamhuseinwala
Former Implementation Trustee Open Banking
London W14