|The 20 startups getting their hands on banks' data|
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Wednesday 19 July 2017 10:18 am
Open Banking’s a step closer with these 20 fintech startups, but the clock is ticking on the CMA’s deadline
The UK's progress toward making banking more open has taken another step forward after 20 fintechs were chosen to test out a new way of sharing banking information for the benefit customers. A call for startups was put out as part of the competition watchdog's ambitious plans to disrupt the big four banks' hold on the market.
Now twenty have been chosen to experiment with open banking APIs that can help small business thrive, following the Competition and Markets Authority's landmark retail banking report. APIs can be used to share banks' customer data – such as transaction information – securely but openly, with startups using them to create innovative new apps, platforms and services.
Read more: Fintech startups can now get direct access to the UK's payments system
The chosen startups, which include digital challenger bank for small business Tide and company information platform Duedil, are the first group to get access to the newly created API which is set to become widely available at the start of next year.
"We now have twenty teams who we firmly believe can build next generation services that will transform small business banking," said Chris Gorst, the challenge prize lead at Nesta, the innovation group charged with supporting the hunt for startups that will share in a £5m prize.
"By supporting these teams with financial rewards, expert support and access to the Open Up Data Sandbox, we hope to play a part in revolutionising a sector that has been slow to exploit new technology and respond to customer needs.”