We’re pleased to publish our third Open Banking Impact Report, which regularly assesses the progress of open banking adoption in the UK and its impact on both consumers and small businesses.
Progress is positive, as the availability – and range – of services continues to expand, and adoption continues to grow.
As part of this report, we have also produced independent research into small business use of open banking-enabled cloud accounting services, and we explore how these services are supporting the management of their accounting needs and business decisions.
Unique research into business use of cloud accountingWe believe this is the first research of its kind, offering unique insights into how seamless access to real-time open banking data is helping to improve financial decision-making, as well as helping to tackle perennial business problems such as productivity and late payments.
You can view the full report here.
Key insights include:
Business benefits from open bankingKey insights from our research into business use of open banking-enabled cloud accountancy services allow us to understand, for the first time, the types of businesses regularly using open banking and the benefits they see from it.
It appears that open banking plays a key role in cloud accounting, and 72% of respondents rated the ability to connect to a bank account as an important feature of their cloud accountancy service. A further 58% felt the same about the availability of real-time transactions, a consequence of open banking connections.
We also know many small businesses find it hard to accurately understand their current financial status. An overwhelming majority (77%) of respondents report that they now have more immediate and accurate insights into their financial position at any given time as a result of using these services.
Mark Chidley, OBIE SME Customer Representative, said: “The OBIE’s third Impact Report shows that not only are more and more small businesses adopting cloud accounting services since the introduction of open banking, but also that these services are helping to address some of the extraordinary challenges which confront small businesses in 2022 and beyond.
This latest research brings valuable insights into the various ways in which open banking-driven cloud accounting services are helping small businesses become more efficient, make better decisions, and collaborate more effectively with their accountants.”
As well as the positive impacts for small businesses, continuing regular monitoring of open banking’s impact represents an essential method of ensuring it delivers for all end-users – both consumers and small businesses.”
This report is intended to provide regular insights into the development of open banking in the UK, focusing on outcomes for end users. It is built using a methodology developed by the Personal Finance Research Centre at the University of Bristol. The insights are based on a number of data sources and research studies which are detailed in the methodology sections. Because of the fast pace of change and difficulty in definitively establishing end user outcomes, findings are indicative and should be used for information purposes only. For more information on the research design, please view the full report.
You can read our previous Open Banking Impact Reports here: