The UK is deciding on who runs its Open Banking future. The EU is still debating whether to have one.

The UK’s Financial Conduct Authority (FCA) published KPMG’s independent assessment of the two candidates that proposed to lead the standards-setting body capable of becoming the Future Entity for UK Open Banking. KPMG have engaged with Open Banking Limited, Smart Data Group, members of the independent evaluation panel, and wider industry stakeholders.

„This independent assessment was commissioned to support decision making at a time when industry is leading the development of arrangements for a standards-setting body capable of becoming the Future Entity (FE), subject to any future legislative framework.” – FCA said.

The report is being published to ensure broad and transparent access for stakeholders across the open banking ecosystem. It is intended to support industry considerations for next steps for the Future Entity.

An industry panel scored both proposals across six categories: governance, industry support, technical capability, funding, risk and security, and operational feasibility.

„One proposal came out clearly ahead in every category. My understanding is that the assessment is not binding and does not predetermine who eventually operationalises the Future Entity.” – said Andres Lehtmets, Top 25 Global InsurTech Voice (Favikon 2026).

A second KPMG report on operationalisation is coming in the next weeks. Meaningful progress towards establishing the Future Entity is expected by end of 2026.

FCA explained: „In the coming weeks, the FCA will publish an additional report prepared by KPMG, setting out considerations relevant to how the Future Entity could be operationalised. We recognise the importance of timely, coordinated progress and expect industry to set out how it wishes to proceed with next steps promptly. The FCA is ready to support the next stage of the process.”

Andres continued: „Meanwhile in Brussels, FIDA trilogues that began in April 2025 are still searching for a landing zone, with simplification debates, Big Tech exclusion questions and phased timelines all still on the table.

Here is what I keep coming back to. Open finance, AI and a strong consumer protection framework are not three separate policy debates. They are the same debate. Get the combination right and you address structural problems in retail finance and insurance that we have been describing for a decade.

The UK is moving on the infrastructure piece. The EU has the regulatory ambition but keeps stalling on the political commitment. What exactly are we afraid of?„

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More details here – KPMG report: Independent assessment of proposals to establish an open banking standards-setting body