Open Banking Surges to Five Million Users ‘Milestone’

It took ten months to grow the number of users from one million to two million in 2020. In contrast, it has taken four months to grow from four million to this point.

The popularity of open banking in the UK has increased in style with the latest stats revealing there are now more than five million active users.

The figures are based on data provided during January 2022 by the CMA9, the nine banks and building societies mandated under the CMA Order to implement open banking in the UK.

This “milestone” follows January’s fourth anniversary of PSD2 making open banking a regulatory requirement in the UK, when more than 4.5 million people and businesses were using open banking services.

Charlotte Crosswell, Trustee of the Open Banking Implementation Entity (OBIE), comments: “Open banking was predicated on delivering increased competition and providing consumers and small businesses with new and innovative solutions. It is therefore extremely encouraging to see that more than five million active users are now leveraging the benefits of open banking.”

Newly appointed CEO of the OBIE, Henk Van Hulle, notes: “This demonstrates that the tremendous efforts of everyone across the whole ecosystem continue to bear fruit. It also shows what a superb job the team at the OBIE are doing in building and running the supporting infrastructure.”

David Beardmore, Ecosystem Development Director at the OBIE, adds: “This is positive news for all involved in open banking – for those entrepreneurs who have built fintech businesses based on the foundations of open banking, for the investment community funding the continued expansion of products and services, and for government as it continues to examine how best to extend open banking functionality into other areas of the economy.”

Not surprisingly, OBIE sees all these latest stats as an “exciting” time. It says it took ten months to grow the number of users from one million to two million in 2020. In contrast, it has taken four months to grow from four million to more than five million,

Payments were the “driving force” behind this growth – and OBIE saw nearly 625,000 additional payments in January 2022 compared with December 2021.

A “significant factor” in this payments growth was HMRC’s incorporation of a ‘Pay by bank‘ option into its annual self-assessment process, which took the total number of payments made via open banking to 3.86 million in January 2022. This is an increase of 19.3% compared to December 2021.

There is certainly no shortage of fintech stories based around the concept of open banking.

This week, banking technology platform provider BankiFi partnered with TSB to launch the Revenu app for small businesses.

Last week, there was a London-based duet when investment platform Tillit chose TrueLayer for its open banking needs.

Antony Peyton
Antony Peyton
Antony Peyton is the Editor of eWeek UK. He has 18 years' journalism and writing experience. His career has taken him to China, Japan and the UK - covering tech, fintech and business. Follow on Twitter @TonyFintech.
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