Download One Year of Open Banking (PDF)

Commenting on one year of Open Banking, Trustee of the OBIE, Imran Gulamhuseinwala OBE said:

“Two years ago, Open Banking was regarded by many as a typical compliance exercise championed only by a handful of FinTechs – more tech spend driven by compliance rather than business case or customer need. This is no longer the case.  Banks have very firmly moved from viewing Open Banking as a compliance exercise to an opportunity to compete and innovate. They have worked hard to implement the Standards despite many challenges and an ambitious timescale.  Yet already we have seen some impressive early signs of new technologies powered by Open Banking – even though we are only mid-way through our roadmap with lots more to come.

“Consumers are gradually being offered products and services which will securely help them move, manage and make more of their money.  The often over-looked, hardworking population of SMEs – now totaling over 5m businesses – are also benefiting from new technologies which are supporting their efforts to boost profit, performance and productivity.

“We are also seeing some early and exciting signs of how Open Banking is powering technologies to help address some of society’s issues, in particular in the debt advice area.  In short, it is clear that there are signs of an emerging dynamic, vibrant and developing ecosystem – an ecosystem which is rapidly becoming more sophisticated and expansive in its coverage. But with the line of sight we have into the open banking “pipeline”, this is going to considerably ramp up in 2019. Today, we have over 100 regulated entities enrolled in Open Banking with in excess of 100 waiting to join.  We expect the ecosystem to develop with even greater momentum and pace not least as we see greater conformance with the implementation of the Standards as well as greater innovation in the market.

All of which is encouraging. However, our focus for 2019  is firmly fixed on an enhanced user experience – what we have today is, for sure, a step in the right direction but it does not yet meet the high standards of conformance and performance we expect. However, I am confident that 2019 – post March and the implementation of v3 of our Standards – will bring a mobile-enabled and frictionless customer journey.”

As Open Banking approaches its first anniversary, we take a look back at some of the highlights of the year.

100 regulated providers made up of 67 third party providers and 33 account providers, with 17 third party providers live with customers

13 January
Open Banking Standard launches

January
Yolt and Lloyds Bank make first successful account information transaction
– “80% of the functionality was delivered in January to approximately 80% of the population” Imran Gulamhuseinwala
OBE > Watch the video

March 

Version 2 of the Open Banking Standards released

April 

CYBG launches new B money management service

May 
Open Banking Consumer Manifesto launched

1 million API calls

June 
Token makes first end to-end payment through Open Banking APIs

– “Open Banking places consumers back in control of their data – unlocking a new world of services and opportunity” Imran Gulamhuseinwala OBE > Watch the video

August
Open Data Service Quality Indicators API published

September 
Version 3 of the Open Banking Standards including Customer Experience Guidelines released

November
– AIB rolls out Open Banking in Ireland
Iwoca makes first business loan using Open Banking data

17.5 million API calls

December
– NESTA Open Up Challenge announces winners
– “Open Banking is playing its part in developing a dynamic and vibrant economy” Imran Gulamhuseinwala OBE > Watch the video

Information correct as at 8 January 2019. Produced by Open Banking Implementation Entity (OBIE).

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For further information, please contact:

press@openbanking.org.uk

About Us

Open Banking is a new, secure way for customers to take control of their financial data and share it with organisations other than their banks. Open Banking has the power to revolutionise the way we move, manage and make more of our money. For businesses, it is about making the management of cashflow and receiving payments cheaper and easier. Open Banking will make things simpler, faster and more convenient.

Open Banking follows the Competition and Markets Authority (CMA) investigation into the supply of personal current accounts (PCAs) and of banking services to small and medium-sized enterprises (SMEs).

Open Banking was created to enable innovation, transparency and competition in UK financial services. It is tasked with delivering the Application Programming Interfaces (APIs), data structures and security architectures that will enable developers to harness technology, making it easy and safe for individuals and SMEs to share the financial information held by their banks with third parties.

Open Banking will bring substantial benefits. It gives customers and SMEs greater market choice and greater control over their money and associated data, along with better and easier access to new financial services providers in a secure environment.

Notes to Editors:

1. Open Banking Ltd was set up by the Competition & Markets Authority (CMA) in September 2016 to fulfil one of the remedies mandated by the CMA following an investigation into UK retail banking.

2. The CMA’s investigation into the retail banking market (whose findings were published in August 2016) concluded that older and larger banks do not compete hard enough for customers’ business and that Open Banking should deliver a new, secure option for customers to be able to compare the deal they are getting from their bank.

3. Open Banking was created to enable innovation, transparency and competition to UK financial services. It is tasked with delivering the Application Programming Interfaces (APIs), data structures and security architectures that will make it easy and safe for customers to share their financial records by January 2018.

4. The data provided by Open Banking will enable developers to harness technology that allows individuals and businesses to share their financial records held by their banks with third parties.

5. Open Banking is a private body; its governance, composition and budget was determined by the CMA. It is funded by the UK’s nine largest current account providers and overseen by the CMA, the Financial Conduct Authority and Her Majesty’s Treasury.

6. The 9 mandated institutions (referred to as the CMA9) are: Barclays plc, Lloyds Banking Group plc, Santander, Danske, HSBC, RBS, Bank of Ireland, Nationwide and AIBG.