THERE is no clear timeline at the moment on when the proposed implementation of open banking measures, aimed at improving the ease at which consumers can switch accounts from one bank to the next, is to be implemented.

Richard Byles, governor of the Bank of Jamaica, gave the update on Friday during the central bank’s quarterly monetary policy press briefing.

“To be honest, I don’t have a timeline. But I am absolutely committed to it. We’ve discussed it in management committee. It is part of the strategic plans for the next year or 18 months,” Byles said in response to queries on the matter.

There have been indications in recent times that under open banking provisions to be implemented in the near future, consumers will be able to ask their current financial institution to transfer personal data for opening an account from one financial institution to another — either on a one-off or ongoing basis — to help ease the stress of opening new accounts.

Byles however said, getting that done will take consensus from the deposit-taking institutions (DTIs).

“Each deposit-taking institution is required to do its due diligence on every customer and their correspondent bank – whether United States or United Kingdom, wherever – depends on them to make sure that there are no money launderers or terrorist financiers that are customers of theirs and doing transactions. Every bank has that responsibility and they can’t pass that off to unto anyone else. They have to be satisfied themselves. So, it means that if we are trying to create portability, we would have to have a central depository in which all banks have confidence in the information on the customers in there.”

He added that such as system would work well with the soon to be implemented, national identification system.

“Putting that together is not an easy task. It means I would have to get all of the DTIs to come together and agree what are the terms of reference, what is the outcome that will make everyone feel comfortable with the quality of the data in that depository.”

“Very importantly, too, when we have a national identification number, that will go a long way to satisfy all of the DTIs that the person who is in front of them is actually the person who they say they are, and that is a big part of the problem that we currently have.”

“So, once we get the national identification system done, and we get the banks to hammer out, among themselves and the central bank, what are the terms of reference of the central depository approach, we will begin to practically implement it.”

Byles added that he expects the national identification system will begin implementation shortly.

“And so, although we don’t have a timeline we are very invigorated by the need to get it going and are going to hit the ground running,” he added.

The proposal has found favour with consumers and financial institutions, with VM Group president and CEO Courtney Campbell pushing for swift implementation.

“VM is eagerly awaiting open banking,” Campbell told VM Group members at the entity’s annual general meeting recently. “We are confident that, given the quality of our service delivery, the competitiveness of our products, and our demonstrated commitment to financial inclusion, our business should benefit from data portability and open banking whenever it is implemented in Jamaica. We will be ready!” he said then.