New open banking agreement launched to reduce fraud and improve prompt payment across the public sector

The new RM6301 Open Banking Dynamic Purchasing System (DPS) enables the public sector to access a complete suite of open banking services and account to account payment under a single agreement for the first time. 

These services, which allow for read-only financial data to be shared between banks and third-party service providers, are designed to provide access to quicker, cheaper and more accurate banking services versus conventional payment acceptance methods, such as debit cards. By negating fees incurred by traditional debit card payments, it is believed the DPS could help achieve savings of 70-80%. 

The services offered under the agreement could also help reduce the volume of fraudulent or in-error payments made throughout the public sector by confirming or denying the identity of account holders. This will unlock the ability of open banking to clamp down on fraudulent activity, including false tax and benefit claims. 

The DPS will offer customers 3 types of services to the public sector:

• digital payment services – allowing users to make or receive payments digitally, without the need for bank cards
• account information services – supplying account information, with users’ consent, as part of processes such as fraud identification, income verification and identity confirmation
• confirmation of payee services – providing checking services on names or accounts to verify individuals and/or organisations

Through this DPS, customers will have access to new innovations and applications as new use cases arise, with suppliers able to join at any time over its 8-year duration.

Simon Tse, CEO of Crown Commercial Service said:

We’re delighted to be launching the first comprehensive open banking agreement in the public sector, offering significant savings and vital innovations in financial capability. This solution is built on extensive market engagement with a range of providers, from major banks to fintech start-ups and government institutions.

The flexible agreement reaffirms our commitment to providing maximum value to our customers, and opens up opportunities for a diverse spectrum of suppliers in an exciting emerging market.

Innovations and benefits

• allow for more accurate understanding of personal financial circumstances, enabling more precise assessment of means 
• enables vulnerable members of society to receive vital payments quicker
• removing many of the delays associated with traditional payment methods across the public sector, allowing payments to be made and received in real-time
• easier for small and medium sized enterprises (SMEs), which make up a large number of the UK’s existing open banking providers, to become suppliers
• DPS structure means suppliers can meet evolving customer needs on an ongoing basis

Find out more

To find out more about the Open Banking DPS visit the agreement webpage or contact the CCS Service Desk at info@crowncommercial.gov.uk / 0345 410 2222.

Don’t forget, you can find a full list of all the commercial agreements we offer, alongside details of how we can help you build policy considerations into your procurement, in our interactive digital brochure.