Regulations

Story: FCA Picks KPMG to Review Open Banking Standards Body Plans

By Pankaj K

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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…

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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.

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KPMG's job sounds straightforward enough.

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The consulting giant will dig into whether this Future Entity can actually work and how it should be structured.

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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…

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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…

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Sarah Pritchard from the FCA said in a recent statement that they want to "create a more structured and reliable open banking environment.

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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.

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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…

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But there's a bigger picture here. Other countries are watching what the UK does with this whole setup. If it works, expect copycats.

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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.

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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.

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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…

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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.

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The compliance piece is huge too. Banks are paranoid about data security and consumer protection - one screw-up and regulators come down hard.

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