FCA Picks KPMG to Review Open Banking Standards Body Plans

The FCA just hired KPMG. The financial regulator wants an independent look at plans for a new UK standards-setting body that would handle open banking APIs, and they’re not messing around with this assessment.

KPMG got the nod after the FCA sent letters to trade groups on February 11, 2026, basically saying “we need outside eyes on this whole thing.” The move comes as the regulator tries to figure out how to set up what they’re calling the Future Entity – a body that would create standards for open banking application programming interfaces across the UK. But here’s the catch: the FCA doesn’t even have legal power to oversee this new entity directly yet. They’re pretty much building the plane while flying it.

KPMG’s job sounds straightforward enough.

The consulting giant will dig into whether this Future Entity can actually work and how it should be structured. They’ll look at governance, money flows, and whether the whole setup makes sense in the real world. The FCA basically admitted they need help figuring this out – they can’t just wing it when it comes to something this big.

Industry folks are watching closely. Representatives from UK Finance Association think it’s about time someone took a serious look at standardization issues that have been bugging the open banking sector for months. One banking executive, who didn’t want his name used, said “we’ve been waiting for clarity on this stuff forever.”

And the timing matters. The UK’s open banking world has been dealing with regulatory uncertainty since late 2025, with banks and fintech companies basically flying blind on what standards they’ll need to follow. Everyone’s been asking the same question: who’s going to be in charge?

Sarah Pritchard from the FCA said in a recent statement that they want to “create a more structured and reliable open banking environment.” She’s been pushing hard for this assessment, according to people familiar with the discussions.

KPMG will probably focus on the money side too. The Future Entity needs to pay its bills somehow, and nobody’s figured out exactly how that works yet. Banks might have to chip in, or maybe there’s a fee structure – it’s all pretty murky right now.

The FCA also wants diversity baked into this new body’s leadership. Charles Randell, the FCA Chair, made that clear when he said “diverse representation is crucial for legitimacy” in the February 11 announcement. So KPMG’s got to figure out how to make that happen too. This follows earlier reporting on FCA Opens AI Testing Applications as.

But there’s a bigger picture here. Other countries are watching what the UK does with this whole setup. If it works, expect copycats. If it doesn’t, well, that’s going to be embarrassing for everyone involved.

The assessment won’t be quick. KPMG’s got to talk to banks, fintech companies, trade groups, and basically everyone with skin in the game. They need to understand how compliance works, what the risks are, and whether this Future Entity can actually do its job without screwing things up.

One thing that’s clear: the FCA doesn’t want to rush this. They’ve seen what happens when financial regulations get botched, and nobody wants that kind of mess. Better to take time now than fix disasters later.

The regulator has been pretty open about keeping everyone in the loop during this process. They’re sending updates to stakeholders and trying to avoid the usual regulatory black box approach. It’s refreshing, according to several industry sources who spoke off the record.

Meanwhile, banks are basically in wait-and-see mode. They can’t make major decisions about their open banking infrastructure until they know what standards they’ll need to follow. Some are moving ahead with their own plans anyway, figuring they’ll adapt later if needed.

The compliance piece is huge too. Banks are paranoid about data security and consumer protection – one screw-up and regulators come down hard. So whatever KPMG recommends has to work within existing rules while creating new ones.

KPMG didn’t respond to requests for comment about their timeline or specific approach. The FCA also hasn’t said when they expect results, which is driving some people crazy. “We need dates, not just promises,” said one fintech executive. This follows earlier reporting on Banking Giants Push Hard Against Stablecoin.

The whole thing feels like the FCA is trying to thread a needle. They want innovation but also stability. They want industry input but also regulatory control. And they want it done right the first time because there probably won’t be a do-over.

International regulators are definitely paying attention. The European Central Bank has people following this closely, and so does the Federal Reserve. If the UK nails this, it could become the template for open banking governance worldwide.

For now, though, it’s all about KPMG’s assessment. The consulting firm has worked on similar projects before, but nothing quite like this. They’re basically designing the blueprint for how open banking standards get made in one of the world’s biggest financial centers.

The FCA’s February 11 letter mentioned that compliance and risk management would be “closely scrutinized” during the assessment. Translation: they’re not taking any chances with this stuff. One regulatory insider said the agency learned from past mistakes and wants bulletproof systems this time.

Financial sustainability keeps coming up in discussions too. Nobody wants to create an entity that runs out of money in two years. KPMG’s got to figure out funding models that work long-term, which means getting creative about revenue streams and cost structures.

The assessment covers everything from day-to-day operations to big-picture strategy. It’s not just about whether the Future Entity can exist – it’s about whether it can thrive and actually improve the open banking ecosystem.