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UK open banking users swell to seven million

The number of consumers and SMEs actively using open banking powered services in the UK has reached seven million for the first time.

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UK open banking users swell to seven million

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

User numbers are reported to oversight entity Open Banking Limited (OBL) by the CMA9, the banks and building society mandated by the Competition and Markets Authority to implement open banking in the UK, and numbers for January show that the combined figure tipped seven million.

The upward trend comes just one month after the completion of the CMA Roadmap and the 5th anniversary of the Second Payment Services Directive (PSD2), which made open banking a regulatory requirement in the UK.

Henk Van Hulle, chief executive officer of OBL, says: “I am delighted that we have now reached 7 million active open banking users in the UK. It is significant that 1.2 million of these are first-time users. From access to cost-effective credit, building a regular savings habit or making more informed financial decisions - open banking is delivering the means for our citizens to improve their financial wellbeing.”

The positive spin put on the numbers contrasts with the downbeat tone adopted by outgoing OBL trustee Charlotte Crosswell when she handed in her end of term report earlier this month. Crosswell noted that while open banking has demonstrated its effectiveness, it is still only used by three in 20 digitally active UK adults and that Account Information Services users has stalled.

She said that one of the impediments to progress has been the absence of a clear vison for developing the UK into a Smart Data economy, where people and businesses have rights to access their data, wherever it may be held.

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Comments: (1)

Jeremy Light Co-founder at Fourdotzero

A more interesting metric from the OBIE is 8.45m successful OB payments in Jan 23. This is 121% higher than Jan 22, while the total for the year in 2022 (68m payments) is 171% higher than 2021 (25m payments). OB payments are demonstrating a sustained trajectory at a growth rate suggesting a billion or more OB payments in 2025. At this point, if other payment innovations are a guide such as contactless cards, the U.K. FS industry will take notice, with many saying “we failed to see that coming”. In contrast, the PISPs already driving and riding this growth will be sitting pretty.

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