open banking, financial security, credit transactions, Competition and Markets Authority, CMA


An open banking system exists when a third-party financial service provider has access to consumer financial information. What if the United States could be on the forefront of the next banking industry change? A well implemented system would mean a new, accessible way to make a transaction. This Comment will explore how the United States can implement an open banking system. First, this Comment defines open banking against the backdrop of the traditional transaction model. Next, this Comment describes the United Kingdom’s adoption of open banking, focusing on the benefits and detriments created by its adoption. Third, this Comment describes key, existing regulations in the United States that should lay a foundation for open banking. Finally, this Comment seeks to attack two critical questions that must be answered before open banking takes hold in the United States: (A) what the standard is, and (B) to whom that standard applies.