Out-Law / Your Daily Need-To-Know

Supplier chosen to help with 'open banking' ID verifications

18 Jan 2018, 4:47 pm

A business that provides identity-proofing services has been chosen to help protect against fraudsters gaining access to customer data under the new 'open banking' regime.

The Open Banking Implementation Entity (OBIE), which is tasked with enabling the delivery 'open banking' in the UK, has selected a "bespoke solution" from Contego.

Contego said its platform "provides a flexible, customised solution, with fully automated identity verification delivered in real-time, via a single API". It said it has developed a "streamlined process" for identity-proofing and verification that are "in line with government standards". The process consists of "online application, ID verification in real-time, and mobile ID document capture", the company said.

Adrian Black, Contego chief executive, said: "Having participated in the original Open Banking Working Group and having seen how open banking will give the customer secure control of their finances, I was keen to be involved. We have delivered a customised solution in a challenging timescale that will provide Open Banking with a complete picture of who they are working with, not just in the UK but now across Europe."

Nigel Spencer, head of support services at the OBIE, said: "Contego’s technology innovations made them a clear front-runner when it came to deciding what firm to team up with to securely deliver open banking."

The open banking initiative envisages the use of open 'application programming interfaces' (APIs) to link the systems of third parties into those operated by banks. The move is designed to help third parties, whether other banks, fintechs, retailers or technology companies, for example, to access the customer account data they hold to help them to provide services to those customers. Third party access to the data is only to be granted where customers consent has been granted.

The (OBIE) has been leading work on the development of standards to ensure APIs are developed in a way which makes them both interoperable and secure.

The open banking reforms are closely linked to EU legislative reforms which recently took effect in the UK under the revised EU Payment Services Directive (PSD2).