Yvonne Dunn, partner at law firm Pinsent Masons, pointed out that the new EU directive could contradict another regulation, the General Data Protection Regulation (GDPR), a confidentiality law which also becomes enforceable in 2018.

“I think the interesting thing about consent and data is that this is where you start to bring in other new legislative developments and start to put them up against things like PSD2 and open banking and start to identify new issues,” Dunn said. “A key one is GDPR, which is due to come in next year as well.”

The GDPR aims to return control to citizens inside and outside the EU over their personal data. It brings current EU data protection regulation in line with the regulatory framework for all international businesses.

Dunn added that there was the “potential for some frictions to develop” between open banking and data sharing, and confidentiality and data protection.

RBS’ Lockhart added that this was a problem for the big banks, which he believes have responded slowly to the concept of open banking due to the structure in which teams follow these processes.

“However this change to open banking is fundamentally the biggest change to the banking system since the invention of the checkbook,” he said.