UK payments and retail banking regulation in 2019

Disruption continues to be the norm for those in the payments and retail banking sectors. 2018 was dominated by preparations, or talk about preparations, for Brexit and 2019 started out in the same vein, with many firms planning for the worst while hoping for the best.

Last year also saw huge changes for banks and payment institutions with the implementation of PSD2 and GDPR in particular. 2019 isn't looking much different, with the changes on the horizon having potentially significant impacts for traditional business models in banking and payments. To help you plot the course ahead, we've prepared the attached overview.

Developments to look out for include the prospect of new retail banking models which, for some banks, may require overdraft products to be redesigned.  In addition, a whole new UK payments architecture is planned to promote competition and innovation.   

There's no slowdown on developments around fair treatment of customers, with the TCF regime being extended to payments and e-money activity by non-banks and the FCA's new guidance on variation terms. Increased consumer protection is evident in several areas, including the proposals for dealing with authorised push payment scams, regulatory activity in affordability and treatment of vulnerable customers and those in payment difficulties. We're also expecting to see more mis-selling pressure on firms in the higher cost and short term credit sector.

You can read about these developments and more in our UK Payments and Retail Banking Regulation: the Year Ahead 2019 report.

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