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The Competition and Markets Authority (CMA) has said that it will “intervene” if banks attempt to delay the implementation of PSD2 standards by arguing about customer security.

Five of the nine largest currency account providers in the UK missed the January deadline for PSD2 and Open Banking. For some banks, their customer won’t be able to access the benefits of the schemes until 2019.

Barclays, Bank of Ireland, RBS and HSBC were given a “maximum” of six extra weeks by the CMA back in December.

Andrew Bailey, chief executive of the Financial Conduct Authority (FCA), told lawmakers that security concerns would not be tolerated as an excuse not to innovate.

Related: Consumers will leave banks “in droves” with PSD2

“One thing that we and the CMA will be very alert to (is) that if the banks seek to use the security argument to suppress competition as opposed to raising standards of security, then clearly that would require intervention by one or both of us,” he said, according to Reuters.

Bailey did admit that it would take “a while to take off” despite his warnings.

Open Banking is being spearheaded by the CMA, which got the project underway following an investigation into competition within the country’s retail banking sector.

The Revised Payments Service Directive, or PSD2, is an EU directive that will enable bank customers, from both the retail and corporate side, to use third-party providers to manage their finances. The legislation was conceptualised in 2013 and ratified in 2016.

by Alex Hamilton
Alex is Senior Reporter at IBS Intelligence, follow him on Twitter or contact him at: alexanderh@ibsintelligence.com