UK – Open banking marks major milestone of 10 million users
The UK’s open banking ecosystem is already worth more than £4 billion to the UK economy, attracting inward investment and creating almost 5000 skilled digital jobs across the country.
Open Banking Limited (OBL) announced that there are now 10 million consumers and small businesses regularly benefiting from using open banking technology. The milestone comes days after the Government committed to introducing a Smart Data Bill in the King’s Speech, which will unlock the full potential of open banking and expand smart data schemes into other economic sectors.
This significant achievement highlights the positive momentum and growing adoption of open banking technologies as millions of consumers and small businesses benefit from innovative financial management and payment tools.
„Competition has been a key driver to growth, and we’ve observed that when one company focuses on open banking technology their direct competitors soon follow. We’ve also seen existing providers expand their offer and use of open banking, as well as the launch of creative new propositions.” – OBL said.
OBL was only set up in 2016, with the launch of open banking in January 2018, and it’s been encouraging to see sustained growth in such a short time.
“I’m delighted that we’ve reached 10 million users. Consumer empowerment is core to open banking and it’s fantastic to see more and more people and small businesses take advantage of the financial opportunities open banking provides. From access to cost-effective credit, building a regular savings habit or making more informed financial decisions, open banking is delivering the means for millions of people to improve their financial wellbeing, delivering a true public good.” – Marion King, OBL Chair and Trustee.
This announcement comes just days after the Government committed to introducing smart data powers through a new Digital Information and Smart Data (DISD) Bill. This essential legislation will build on the important work that open banking has successfully delivered, laying the foundations for future growth of the open banking ecosystem, and which will now propel the UK forward towards an innovative, data-driven economy.
The legislation will unlock the full potential of open banking as we transition from the current competition remedy to a long-term regulatory framework. Henk Van Hulle, OBL CEO welcomed the Government’s announcement.
“Open banking has shown what a truly smart data economy can achieve. We look forward to continuing to support the Government, regulators and other industries to ensure open banking goes from strength-to-strength. It also cements the UK’s role as a standard-setter for open banking across the globe, with many countries adopting a similar approach.” – Henk Van Hulle – OBL CEO.
To celebrate reaching 10 million users and to discuss the full potential of open banking, OBL is holding a Strategy Summit, kindly hosted by TrueLayer, a leading platform provider.
Bringing together a diverse group of innovators, regulators, policymakers and industry leaders, the well-timed summit will investigate how to navigate the next phase of UK open banking as well as how the industry can continue to drive adoption and innovation.
OBL will continue to promote open banking to increase user adoption, unlocking additional benefits for businesses and consumers through smart data schemes across key economic sectors, supporting further economic growth.
The Department for Business and Trade estimates the value of open banking and smart data schemes have the potential to increase GDP by £28bn.
The recent growth in users has bucked trends from previous years:
There has been higher growth in Payment Initiation Service (PIS) users over the past 12 months (61% year on year)
However, growth of Account Information Service (AIS) users has also steadily accelerated in recent months (currently 27% year-on-year).
OBL have seen Account Information Service Providers ramping up customer onboarding too, which has been a contributory factor to growth.