Category: Journalist News

Our monthly update of all things open banking for April 2022, as well as the latest data on the providers and entities in our ecosystem.  

Open Banking April 2022 ecosystem highlights

Trustee’s view 

Charlotte Crosswell, OBIE Chair and Trustee, commenting on the April highlights, said:  

“In April, we published the Open Banking Standard version 3.1.10, the final release under the CMA’s Revised Roadmap. This marks a pivotal milestone in a journey that began five years ago to drive innovation and competition in UK financial services.

“Our Open Banking Standard has paved the way for our thriving ecosystem to bring innovative, real-world solutions to more than five and a half million active open banking users. We continue to facilitate the creation of new propositions, including progressing the roll-out of Variable Recurring Payments. This progress continues to deliver more and more cost-saving solutions for consumers and small businesses, something which is particularly important in these difficult economic times.”

  

Powered by open banking – April 2022    

Shawbook Bank rewards customers who share open banking data with lending discount  

Shawbrook Bank is leveraging open banking technology to make more accurate lending decisions. The specialist lender is offering a one per cent APR reduction to any customer that provides open banking data at the point of application and is subsequently eligible for a personal loan. Gaining this customer permission will allow Shawbrook to collect real-time income and expenditure information through credit scoring fintech ClearScore.  

TrueLayer introduces Variable Recurring Payments (VRPs) 

Global open banking platform TrueLayer announced that VRPs will be delivered through a single application programming interface (API) which is transparent and fast. Matt Parish, the firm’s Product Manager, commented: “With TrueLayer’s API, businesses will be able to connect to select UK banks to take VRPs from their customers, from utility bills and subscription payments to rent instalments. Our VRP API also allows businesses to ‘sweep’ payments, transferring money between two accounts belonging to the same customer.” 

UniCredit extends partnership with Worldline for open banking 

Pan-European bank UniCredit has renewed its partnership with payment services fintech Worldline for a further two years. The strategic alliance means that instead of separate connections with many different banks, UniCredit can have extensive and cost-effective reach throughout Europe through a single API. This, in turn, will open up business opportunities for its customers as they will have the ability to execute Account Information Services (AIS) and Payment Initiation Services (PIS). 

Key OBIE highlights  

28th April – Open banking: Vision for the Future 

Ministers and regulators gathered at the House of Commons at an open banking-focused event, hosted by MP John Penrose. The strong turn-out and nature of the discussions represented a commitment to the ongoing work of open banking and its future value. Charlotte Crosswell OBE, Chair and Trustee of the OBIE, delivered the opening remarks for the evening and reinforced her commitment to the completion of the final stages of the current Roadmap, and the orderly transition to a future entity beyond the CMA order.  

26th April Open banking for energy retailers – Siemens teams up with Ordo 

OBIE engaged with Siemens Energy UK and payments provider Ordo about how open banking payment solutions can help energy retailers reduce the cost-to-serve (including a cost-effective alternative to Direct Debits) and offer domestic customers a secure and convenient way to pay their bills.  For an energy supplier managing a substantial volume of payment transactions each year, the introduction of open banking payments has significant benefits for both energy retailers and their customers. 

5th April – Ministers acknowledge Smart Data as a top priority  

Secretary of State for Business, Energy and Industrial Strategy Kwasi Kwarteng confirmed a funding injection in the development of Smart Data in financial services in his speech at the Innovate Finance Global Summit. This comes after City Minister, John Glenn, recently praised the role of technology in underpinning innovation in financial services.  

5th April – Charlotte Crosswell OBE, OBIE Trustee and Chair, spoke at IFGS 2022 

Innovate Finance Global Summit 2022 gathered industry leaders ranging from innovators, institutions, and regulators to policymakers, start-ups, and investors. In a discussion titled, ‘Open Finance and Smart Data: Progress Across an Endless Sea of Possibilities’, Crosswell highlighted the strong commitment of government, regulators and the wider industry to maintain the UK’s world-leading position, and with user numbers passing 5 and a half million to continue unlock the benefits of open banking to consumers and SMEs.  

4th AprilThe OBIE publishes Open Banking Standard version 3.1.10  

After five years, the OBIE reached a major Roadmap milestone with the publication of the Open Banking Standard version 3.1.10. This is the final release under the CMA’s revised roadmap and as such, includes updates that have been made in response to changes in the UK RTS, the requirements defined in the Transaction Risk Indicator proposition document, as well as feedback from ecosystem participants.  


For further information, please contact: press@openbanking.org.uk

Here’s our monthly update of all things open banking for March 2022, as well as the latest data on the providers and entities in our ecosystem.

You can download a PDF of the highlights here.

Trustee’s view

Charlotte Crosswell, OBIE Chair and Trustee, commented: “March was a momentous month for open banking and the OBIE. The CMA published its long-awaited announcement on the future arrangements for open banking. It provided the next steps across several key areas and most significantly sets out the creation of a new Joint Regulatory Oversight Committee (JROC). This will be chaired by the Financial Conduct Authority and the Payment Systems Regulator, and will be attended by HM Treasury and the Competition and Markets Authority.

“The announcement underlines government’s and regulators’ commitment to the future success of open banking. Four years ago, open banking was a concept in name only. Today, more than five million consumers and small businesses are benefiting from open banking-enabled products, and this is only the start. We did not make so much progress by accident, it was by design. And that’s been recognised.

“I look forward to working in close collaboration with the JROC and all relevant stakeholders as we build on the UK’s leadership in open banking.”

Key open banking stories – March 2022   

Apple acquires Credit Kudos

Credit Kudos, the London-based credit reference agency which allows businesses to access loan applicants via banking and payment transaction data, has been acquired by tech giant Apple. The move is thought to mark Apple’s acceleration into the payments world and to help the firm secure a footing within the ‘buy now, pay later’ (BNPL) space.

AltFi publishes an overview of the open banking industry

The fintech publication released its ‘Open Banking: State of the Market Report’, a comprehensive summary of the open banking landscape in 2022. AltFi traces the history of open banking and explores how it has grown into the multi-billion-dollar industry we know today. The report also delves into the state of open banking worldwide and discusses the reshaping of the OBIE.

Klarna launches Kosma – a dedicated open banking unit for financial services firms

Klarna unveiled Klarna Kosma, a new brand that aims to expand its open banking platform to financial services firms. The Kosma business unit will enable financial institutions, fintechs and merchants to build the next generation of fintech apps and services by providing secure access to 15,000 banks in 24 countries via a single API. The announcement comes just weeks after the BNPL financial services firm introduced its first UK credit card.  

Open banking data helps ‘credit invisibles’ access finance

According to new Experian data, five million people struggle to access financial products and public services because of a lack of information on their credit records. These so-called ‘credit invisibles’ include people with low incomes, young people without an established credit score, recent immigrants, and older people with no credit file. However, the research highlights that new data sources, enabled by open banking, have helped reduce the number of credit invisibles by 750,000 since 2018.

Snoop steps into the employee benefits market with Snoop Plus

Snoop, the money-saving app that uses open banking to analyse users’ spending, is entering the employee benefits market with Snoop Plus. The product will offer personalised and proactive money management as part of its benefits and wellbeing strategy, placing financial health alongside mental and physical health.

PensionBee offers pensions to self-employed savers via Starling Marketplace

Online pension provider PensionBee has opened up its pensions to sole traders and owners of limited companies through Starling’s Business Marketplace platform. Open banking enables PensionBee to use existing customer information held by Starling customers to combine their existing pensions and invest in new ones.

Key OBIE highlights

25th MarchCMA announces next steps on the future of open banking

The Competition and Markets Authority (CMA) announced its recommendations for the next steps for open banking, which will serve as a guide to ensure the future success of the OBIE. The future entity will build on the strong foundations established by the OBIE and look to continue its legacy by encouraging innovation and supporting competition in retail banking.

In tandem, the CMA, HM Treasury, the FCA and PSR will work together to propose a constitution for the new entity, publishing a joint statement outlining their plans for the oversight and governance of open banking. This highlights the creation of a Joint Regulatory Oversight Committee, which will continue to engage with stakeholders, including industry participants and end-user representatives, to help set the strategic direction for open banking in the UK.

17th MarchThe OBIE appoints Theresa Casey as the new General Counsel

The OBIE welcomed Theresa Casey as its new General Counsel as part of a series of appointments to strengthen the senior leadership team. Ms Casey is highly qualified, with significant experience in corporate governance, transformation, and financial services, most recently as General Counsel and Company Secretary at N Brown Group.

14th MarchCMA clarifies the definition of Sweeping for Variable Recurring Payments

In mid-March, the CMA published a clarification on the definition of Sweeping, which details specifically what the payment solution entails. This comes after a decision in July 2021 to mandate the use of Variable Recurring Payments (VRPs) as a mechanism for implementing Sweeping as part of the Open Banking Revised Roadmap. The OBIE looks forward to seeing new Sweeping propositions come to market later this year.

3rd MarchFCA updates guidance on 90-day Strong Customer Authentication

The FCA updated its guidance on Strong Customer Authentication to support the transition requirement of the UK-RTS Article 10A exemption, including reconfirmation of consent by AISPs. These rules are intended to enhance the security of payments and limit fraud during the authentication process. The OBIE believes the changes will minimise disruption to consumers and SMEs as the industry prepares to implement these changes.


The CMA has today published its response on the next steps for open banking across several key areas including monitoring, regulatory oversight, resourcing, sustainability, leadership and representation. Alongside the CMA’s consultation response, HMT, FCA, PSR and CMA have published a Joint Regulatory Statement providing further clarity to the open banking ecosystem on the government’s and regulators’ ambition for open banking and its extension into open finance and other sectors.

Commenting on the announcements, the OBIE’s Trustee and Chair, Charlotte Crosswell, said: “We welcome the announcements by the government and regulators, and the endorsement it gives for the future of open banking to our thriving ecosystem. There has been significant collaboration in developing the infrastructure, standards and ecosystem that we have in place today. We now need to drive forward competition and adoption to realise the benefits of innovation for consumers and businesses across the UK.

“Today’s announcement underlines government and regulators’ commitment to the future success of open banking, and the foundations for open finance and beyond. We will look forward to working with the new Joint Regulatory Oversight Committee over the course of this year.”

Crosswell took the opportunity to reflect on the public good aspect of the CMA’s Retail Banking Market Investigation Order 2017, and highlight why the UK leads the world in open banking implementation and growth. 

“Four years ago, open banking was a concept in name only. Today, more than five million consumers and small businesses are benefiting from open banking-enabled products, and this is only the start. We did not make so much progress by accident, it was by design. The UK’s leadership in open banking was enabled by our pro-competition approach and the ambition of our regulators and government. This forward looking leadership provided the confidence and the means through which innovation has flourished. I look forward to working in close collaboration with all stakeholders in taking open banking into the future and strengthening the UK’s leadership in this field.”

Henk Van Hulle, the OBIE’s CEO, said the organisation was already in planning and preparation mode. We have already made positive organisational, governance and operational changes to ensure we are best placed to take these arrangements forward. We will consult with key stakeholders and develop a detailed plan for transition, and I am confident that we are in a strong position to deliver what is needed to drive progress and maintain momentum in open banking.” 

Ends.

Notes to editors.  

For further enquiries, or to arrange an interview with an OBIE spokesperson, please contact Adam Taylor, adam.taylor@cicero-group.com.

Open Banking Ltd is the entity set up by the CMA9 as ordered by the CMA in 2016 to deliver open banking. Its trading name is Open Banking Implementation Entity (OBIE).

The OBIE is funded by the CMA9 (Allied Irish Bank, Bank of Ireland, Barclays, Danske, HSBC, Lloyds Banking Group, Nationwide, NatWest Group and Santander). The OBIE works with the CMA9, as well as challenger banks, financial technology companies, third party providers and consumer groups.

The OBIE’s role is to:

Download the February 2022 highlights

336 regulated providers made up of 244 third party providers and 92 account providers, with 124 regulated entities that have at least one proposition live with customers.

Commenting on the February highlights, Charlotte Crosswell, OBIE Trustee and Chair, said:

In February we celebrated passing the 5 million active user milestone. This accelerated growth shows the increasing appetite of consumers and small businesses to leverage the technology to move, manage and make more of their money. I also had the pleasure of speaking at the All-Party Parliamentary Group (APPG) on Open Banking and Payments, updating Parliamentarians and other key stakeholders on the progress we have made and the potential of open banking to deliver even more innovation and benefits as we move beyond the implementation phase. The FCA stated that open banking is a “glowing success,” recognition that our ecosystem should be proud of. We have continued to make progress in implementing VRPs (Variable Recurring Payments) for Sweeping, an innovation which will revolutionise our payments industry. These are all strong indications that open banking is here to stay.”

Powered by open banking

Loqbox gives renters the ability to build their creditworthiness 

After polling its members and learning that 92% of LOQBOX renters want to own their own home, the money app has launched a new service to help them build up their credit worthiness. LOQBOX Rent uses Moneyhub’s open banking technology to track, and report rent payment behaviour to Experian. This makes it easier for renters to seamlessly add rental payment information to their credit report, strengthen their credit score, improve their chances of accessing fair, affordable credit and securing a mortgage in the future. 

Cheddar acquires open banking technology firm Upside

Cheddar operates as a bank account-enabled payments platform that is free for consumers to use. Acquiring Upside’s technology will allow the firm to begin to implement open banking as part of its services. Commenting on the acquisition Tariq Zaid, CEO and Founder at Cheddar, said: “We believe this will add substantial value for our customers whilst also complementing our other services and operations. We look forward to exploring these new open banking opportunities to enhance our customer offering.”

Vyne and Gr4vy partner to enable instant open banking payments for merchants 

The partnership trend continues. Vyne, the specialist account-to-account payments platform, announced a new partnership with Gr4vy, a leading cloud-native payment orchestration platform (POP), that will give online merchants access to open banking payments infrastructure. As eCommerce becomes the cornerstone of retail, Vyne’s open banking technology gives merchants access a single view of transaction data and thereby an enhanced understanding of their business as well as greater control over their finances. 

Snoop wins Best Open Banking Solution at Banking Tech Awards 

Open banking-powered personal finance app Snoop took the win at this year’s Banking Tech Awards. Snoop uses open banking data and advanced analytics to help consumers find their biggest money-saving opportunities, as well as help them manage their money.  

Key highlights 

OBIE Trustee Charlotte Crosswell Appears at APPG

On the 22nd of February, Charlotte Crosswell joined the All-Party Parliamentary Group (APPG) on Open Banking and Payments panel discussion. The theme of the panel was “Managing the transition to a new Open Banking governance model.” Under the Chair of MP, Ian Liddell-Grainger, the panel discussed topics including the next steps towards a new Open Banking governance model, progressing the UK’s global lead in Open Banking, and ensuring it evolves to encompass Open Finance and other sectors through Smart Data, as well as how best to ensure that Open Banking delivers for consumers and businesses while achieving a bigger vision beyond the CMA (Competition & Markets Authority) banks.  

FCA recognise the success of open banking 

Sheldon Mills, Executive Director of consumers and competition at the Financial Conduct Authority (FCA), said that he sees open banking as a “glowing success.” This followed OBIE announced that it had passed the significant milestone of five million users benefiting from open banking-powered products and services. In the article published in Peer2Peer Finance News, Mills also underlined the importance of maintaining the “successful mechanism” in the move towards the next phase of open banking and the importance of expanding the use of open data sharing into other forms of financial services. 

VRPs under the spotlight 

The Independent highlighted Variable Recurring Payments as the new way of making payments and moving money between your accounts. The piece quoted Victor Trokoudes, CEO, and co-founder of investment app Plum, saying: “It’s really important that we as an industry still apply pressure to the Open Banking system, to help ensure that innovation and improvements continue for the benefit of consumers.” 

OBIE launches campaign for charities

As part of its first co-ordinated campaign, the OBIE published an innovative ebook which explains how open banking payment solutions can help charities increase fundraising revenue. The campaign was supported by three case studies from JustGiving, Wonderful, and Pledjar which set out the cost savings and administrative efficiencies offered by open banking, as well as new ways to raise funds through options such as digital ’round-ups’.


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For further information, please contact: press@openbanking.org.uk

About Us

The Open Banking Implementation Entity (OBIE) is the entity set up by the CMA in 2016 to deliver open banking. Its trading name is Open Banking Limited.

The OBIE is governed by the CMA and funded by the CMA 9 (Allied Irish Bank, Bank of Ireland, Barclays, Danske, HSBC, Lloyds Banking Group, Nationwide, Natwest Group and Santander). It works with the CMA 9, as well as challenger banks, financial technology companies, third party providers and consumer groups. The OBIE’s role is to:

Download the January 2022 highlights

336 regulated providers made up of 244 third party providers and 92 account providers, with 124 regulated entities that have at least one proposition live with customers.

Commenting on the January highlights, Charlotte Crosswell, OBIE Trustee and Chair, said:

“A new year brings new opportunities, so it was very encouraging to mark the 4th anniversary of open banking with significant growth across both user numbers and open banking payments. It is also great to hear the positive predictions from ecosystem participants about what lies ahead in 2022.”

Powered by open banking

Keebo launches in the UK with the help of Mastercard

A fintech that claims it is on a mission to improve its customers’ financial wellness and ability to build better credit has launched a new credit card as part of a beta launch with Mastercard’s partner program. “With a large number of rejected applications made by people with limited or no UK credit histories, we share the goal to open up credit and bring financial inclusion to those who have experienced unfair difficulty with the current model such as freelancers and content creators through the use of our new underwriting technology,” said Michael Vanaselja, CEO and Co-founder. “We look forward to using Mastercard’s partner program and expanding our service to more users in 2022.”

Ecospend processes £1.5bn payment transactions in January

Ecospend has announced that January 2022 was a record month for the number of open banking payments transacted through its Pay-by-Bank service across its client portfolio. The payment solution was used by over 500,000 users, many of whom would have made their first open banking payment. A particular peak occurred on Monday 31st January as taxpayers across the country used the service to pay their Self-Assessment tax bill.

Tink launches open-banking powered income verification tool

After rolling out its open banking poweredincome verification tool in a number of European countries, Tink is launching the solution in the UK. The proposition, Income Check, allows customers to use face recognition or click through consent to allow a bank or lender to instantly verify their income using secure and real-time data directly from their bank account. Incoming transactions over more than 12 months are categorised as salary, pension, benefits or cash deposits. 

Key highlights 

07.01.22 What does 2022 hold for open banking? Some predictions from the ecosystem – Open Banking

The OBIE acknowledged the significant progress made across the open banking community throughout 2021 by asking a number of our ecosystem participants to give their predictions for the year ahead. The overwhelming sentiment from contributors is that 2022 looks to be a standout year for open banking, especially as user adoption and open banking payment volumes continue to grow and new initiatives such as Variable Recurring Payments (VRPs) become available.

13.01.22 UK open banking marks four-year milestone with over 4 million users – Open Banking

January 13th marked the fourth anniversary of the Payments Services Directive 2 (PSD2) which made open banking a regulatory requirement in the UK. To improve customer choice and boost competition in the retail banking sector, open banking was mandated by the CMA in January 2018. Since then, open banking has transformed the way that more than 5 million consumers and small businesses have been empowered to leverage their financial data to access more services, as well as support the UK’s position as a global innovator in financial services.

20.01.22 Updated governance arrangements for Open Banking – GOV.UK

Following consultation with the OBIE and the CMA9, the nine banks which fund the OBIE, the CMA has published the revised Agreed Arrangements setting out the composition, governance, budget and funding arrangements for OBIE. The changes provide further clarity on the respective roles and responsibilities of the CMA, Trustee of the OBIE and the CMA9 with regards to the governance of the OBIE as set out in the 2017 Retail Banking Market Investigation Order. The amends are intended to ensure that the appropriate processes and mechanisms are in place for the fulfilment of these roles.

06.02.2021 How consumers use savings apps – Open Banking

The OBIE, in conjunction with Marketing Means, conducted a consumer study to look at savings behaviour. Amongst the findings of the research, almost two-thirds of users reported that their overall level of savings had gone up since they started using an open banking-powered savings app.

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For further information, please contact: press@openbanking.org.uk

About Us

The Open Banking Implementation Entity (OBIE) is the entity set up by the CMA in 2016 to deliver open banking. Its trading name is Open Banking Limited.

The OBIE is governed by the CMA and funded by the CMA 9 (Allied Irish Bank, Bank of Ireland, Barclays, Danske, HSBC, Lloyds Banking Group, Nationwide, Natwest Group and Santander). It works with the CMA 9, as well as challenger banks, financial technology companies, third party providers and consumer groups. The OBIE’s role is to:

The OBIE recently celebrated passing the 5 million open banking users milestone. Here we take a look back at 2021 and how our thriving, world-leading ecosystem delivered this impressive growth.

2021 Insights:  

Regulated Providers  

By the end of 2021 there were 337 regulated providers enrolled in the OBIE Directory – up from 294 at the close of 2020. This growth points to the continued value firms receive from direct participation in open banking. 

Payments made using open banking: 

At the end of 2021, cumulatively over 26.6m open banking payments had been made. An increase of more than 500% in 12 months. 

Ecosystem Numbers (December 2021)  

OBIE’s GOALS for 2022  

Charlotte Crosswell, Chair & Trustee, OBIE said: 

“2021 was a year of growth for open banking in the UK. We witnessed a 60 per cent increase in the number of active open banking users, with adoption increasing at a rate of approximately one million new users every six months. Similarly, OB payments increased by an impressive 500 per cent year on year. The OBIE navigated a number of difficult challenges, but sought to listen, learn and reform as a number of organisational, governance and cultural changes were made. As we move forward in 2022 and these internal improvements continue, we want to see the growth momentum that took us to the recent 5 million user milestone continue.”

January  

  

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December  

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For further information, please contact: press@openbanking.org.uk

About Us

The Open Banking Implementation Entity (OBIE) is the entity set up by the CMA in 2016 to deliver open banking. Its trading name is Open Banking Limited.

The OBIE is governed by the CMA and funded by the CMA 9 (Allied Irish Bank, Bank of Ireland, Barclays, Danske, HSBC, Lloyds Banking Group, Nationwide, Natwest Group and Santander). It works with the CMA 9, as well as challenger banks, financial technology companies, third party providers and consumer groups. The OBIE’s role is to:

There are now more than 5 million active users of open banking services in the UK based on data provided during January 2022 by the CMA9, the nine banks and building society mandated under the CMA Order to implement open banking in the UK.

This important milestone follows January’s celebration of the 4th 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.

Accelerated speed of growth

What is especially exciting for us – and for our ecosystem – is the impressive trajectory of that growth. It took 10 months to grow the number of users from 1m to 2m in 2020. In contrast, it has taken just four months to grow from 4m to more than 5m, demonstrating the increasing appetite for consumers and small businesses to use open banking services to move, manage and make the most of their money.

Open banking payments boost adoption

Payments were the driving force behind this rapid growth – we 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 3.86m in January 2022. This is an increase of 19.3% on December 2021.

Commenting on reaching such a significant user milestone, Charlotte Crosswell, Trustee of the Open Banking Implementation Entity (OBIE), said: “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 5 million active users are now leveraging the benefits of open banking.

“This accelerated growth strongly represents a world-leading and thriving ecosystem bringing an ever-increasing range of real-world solutions, that in turn is driving mass user adoption. As open banking technology embeds and becomes easier to use, we look forward to seeing this momentum continue.” 

Newly appointed CEO of the Open Banking Implementation Entity (OBIE), Henk Van Hulle, said: “What a great time to be joining the OBIE! This is great news for the open banking community. I am delighted to see such accelerated growth in end-user adoption rates. 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, said that as well as increased adoption, the numbers provide a clear demonstration to the wider open banking community that open banking is here to stay. “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.”


Notes to editors

For further information, please contact: press@openbanking.org.uk 

About Us 

The Open Banking Implementation Entity (OBIE) is the entity set up by the CMA9 as ordered by the CMA in 2016 to deliver open banking. Its trading name is Open Banking Limited. 

The OBIE is funded by the CMA9 (Allied Irish Bank, Bank of Ireland, Barclays, Danske, HSBC, Lloyds Banking Group, Nationwide, NatWest Group and Santander). The OBIE works with the CMA9, as well as challenger banks, financial technology companies, third party providers and consumer groups. 

OBIE’s role is to: 

Spokespeople available on request. For enquiries, please contact: CiceroOpenBankingPR@cicero-group.com, 020 7297 5965 

Download the December 2021 highlights

337 regulated providers made up of 245 third party providers and 92 account providers, with 124 regulated entities that have at least one proposition live with customers.

Commenting on the December highlights, Charlotte Crosswell, OBIE Trustee and Chair, said:

“Significant resources have been mobilised to make UK open banking so successful. Our strong growth, with 4.5 million active users growing by around 1 million every six months, demonstrates its increasing value to UK consumers and small businesses.”

Powered by open banking

70 per cent of lenders expected to use open banking within two years

A report by Credit Kudos found that the proportion of lenders using open banking is set to jump from 26 per cent to 70 per cent within the next 24 months, while nearly half (47 per cent) of those surveyed think open banking could help their organisation save time and cut the cost of credit decision making in the future. The data suggests that open banking technology is helping lenders to move beyond the limitations of traditional credit data and provide better financial behavioural data, all of which creates more rounded assessments, increased acceptances, and reduced defaults.

Iwoca expands revenue-based loan to support post-pandemic recovery

Small business lender Iwoca has expanded its merchant cash advance product to all SME’s who accept card payments in the UK.  The revenue-based loan allows firms in any industry sector to repay their loans in line with the seasonal flow of their businesses, particularly those in retail and hospitality sectors, who have been especially affected by the pandemic. This expansion follows a successful integration with FundingXchange, launched in September, which offered revenue-based finance loans between £1,000 – £50,000 to online sellers on eBay.

Tink research reveals almost half of Europe’s financial institutions have increased their budgets for open banking

New research published by open banking platform Tink revealed that 2021 investments were fuelled by the shift to digital. A breakdown of the data shows how open banking investments increased during 2021, with wealth management firms experiencing the strongest increase in budgets (58%), followed by wholesale banks (55%), credit providers (51%) and challenger banks (50%). Specifically, 72% of financial institutions saw payment initiation services as the most important use case to their business. The study suggests that to keep a competitive edge, firms should consider working with partners to create open banking solutions that can drive value across all areas of financial services.

Key highlights

09.12.21 – Payment Systems Regulator (PSR) publishes its regulatory framework 

This followed a consultation earlier in the year, which looked at how to reduce risks to competition and innovation once the New Payments Architecture (NPA), which will be one of the biggest changes affecting UK payments, is operational. Whether paying employee wages, or transferring money to a friend using online banking, interbank payments are a key part of everyday life for businesses and consumers alike. Delivered well, the NPA can boost competition in payment services that meet the needs of people and businesses. For this to happen, market participants need confidence that there is a level playing field and that the central infrastructure services (CIS) underpinning the NPA support competition and innovation[AA1] .

09.12.21 – The OBIE welcomes Barbara Ridpath as an independent Non-Executive Director

The Open Banking Implementation Entity (OBIE) announced the appointment of Barbara Ridpath as an independent non-executive director (NED). Barbara brings a wealth of professional, financial and regulatory experience to the organisation, with previous roles at JP Morgan and the ratings agency S&P, amongst others. Barbara’s appointment follows that of Jeremy Newman, who joined the OBIE board as an independent non-executive director in November.

09.12.21 – The OBIE initiates search for a new Chief Executive Officer

The OBIE Board announced plans to appoint a Chief Executive Officer to lead the executive team. The CEO will work with the Trustee, Executive Committee and Board to deliver and refine OBIE’s mission, as well as have primary responsibility for leading company operations and driving its overall strategy. The CEO will also be instrumental in transitioning the OBIE’s ongoing functions to the future entity (which is still to be determined).

02.12.21 – Huge value of open banking explored at AccountingWeb Live Expo

The OBIE’s Stakeholder Engagement Specialist Constanza Castro Feijoo spoke on a panel, also featuring Sam O’Connor, CEO of Coconut, Richard McCall, founder and CEO of Armalytix and Kevin Hart, Chairman of BASDA, that explored how open banking technology can reduce the countless hours it takes for financial institutions and professional services to collect financial information from their clients each year. Other topics including how to make open banking relevant to accountants, the open banking solutions available that can improve productivity and profitability, plus the latest trends in client usage for 2022.

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For further information, please contact: press@openbanking.org.uk

About Us

The Open Banking Implementation Entity (OBIE) is the entity set up by the CMA in 2016 to deliver open banking. Its trading name is Open Banking Limited.

The OBIE is governed by the CMA and funded by the CMA 9 (Allied Irish Bank, Bank of Ireland, Barclays, Danske, HSBC, Lloyds Banking Group, Nationwide, Natwest Group and Santander). It works with the CMA 9, as well as challenger banks, financial technology companies, third party providers and consumer groups. The OBIE’s role is to:

Download the November 2021 highlights

334 regulated providers made up of 243 third party providers and 91 account providers, with 124 regulated entities that have at least one proposition live with customers.

Commenting on the November highlights, Charlotte Crosswell, OBIE Trustee and Chair, said:

“In November we published our second Open Banking Impact Report. It showed how open banking enabled apps are helping people and businesses in the real world, making a positive impact on their lives and business. It was really great to see that the vast majority of people using open banking products find them easy to use, plan to continue using them and, in fact, want to use other open banking services too.”

Powered by open banking

The FCA removes 90-day reauthentication rule

In November the FCA announced that consumers will no longer need to reauthenticate permissions with Account Servicing Payment Service Providers (ASPSPs, e.g., banks) every 90 days if accessing account information through a third-party provider. This simple step will allow third party providers to collect consumers’ reconsent every 90 days instead.

Tide attempts major shake-up of market by targeting customers of rival banks

Tide is planning to offer its accounting products to non-customers. While the launch of Tide Open Access will initially be restricted to invoicing, the fintech says its expense management, payroll and credit services will all soon be available to any SMEs, not just those whose current account is with Tide. The FinTech hopes that opening up its services will tempt established businesses, who are typically more reluctant to switch financial provider, to give its services a try.   

Partnerships related to open banking are most in demand

B2B platform Finnovate’s X-Tech Matching Report 2021 H1 found that the most sought-after activities and the largest collaboration agreements in the first half of 2021 were those related to open banking. This was followed by buy now, pay later (BNPL). Open banking FinTechs Tink and Plaid were at the top of the most active ranking, while the most dynamic corporations were payment institutions and banks, where Mastercard, VISA and BBVA took the lead.

Juniper Research predicts the global value of payments made through open banking will be $116bn by 2026

According to a study from Juniper Research, the global value of payments made through open banking will be $116bn by 2026, compared to $4bn this year, showing that the sector is about to have a major acceleration in take-up. Increased user awareness is expected to drive the increased take-up over the next five years with Europe leading the way and expected to account for 75% of the total in 2026.

Open banking payments remove pain points for Lightyear investors

TrueLayer is collaborating with investment platform Lightyear to deliver instant account funding through open banking payments. Lightyear’s customers can now connect their primary bank account to the trading app for instant and secure funding using Payments Initiation. This means customers can fund their accounts in seconds and make timely investment decisions, supporting Lightyear’s strategic ambition of making investing easy and approachable and removing all the traditional pain points that create a clunky customer journey.

Key highlights

3.11.21 APPG on open banking and payments ecosystem participants

OBIE Chair and Trustee Charlotte Crosswell attended the All-Party Parliamentary Group on open banking and payments for a briefing and discussion with the Economic Secretary to HM Treasury, John Glen MP. The discussion focused on the government response to the Payments Landscape Review, plans to make legislative and regulatory changes post-Brexit to enhance open banking in the UK, as well as the next steps towards a new open banking governance model. Glen welcomed Crosswell to her new position and concluded by stating that he’s keen to collaborate with parliamentarians, the OBIE, and industry to deliver the future vision for payments and enhance open banking for the benefits of consumer.

4.11.21  OBIE Chair & Trustee delivers closing keynote at Open Banking Expo

Newly appointed Chair and Trustee Charlotte Crosswell shared her insights and vision for how the true potential of open banking in the UK can be realised. In her address, Charlotte said that the industry must together to ensure that open banking doesn’t become a missed opportunity, while emphasising that the positive impact of open banking for consumers, businesses, and the wider economy will expand as adoption grows.

04.11.21 – OBIE publishes latest iteration of Open Banking Impact Report

The second edition of the OBIE Open Banking Impact Report, which assesses the extent to which open banking is helping consumers and SMEs. The research highlights the growing number of services in the market that are increasingly being adopted by customers.

05.11.21 – OBIE reinforces governance with NED hire

OBIE announced that a search for a second independent Non-Executive Director (NED) to join its Board was underway, with the individual to provide support and independent oversight, scrutiny, policies and controls to OBIE Chair and Trustee Charlotte Crosswell and recently appointed NED Jeremy Newman. (This position has subsequently been filled by Barbara Ridpath).

11.11.21 – Update from OBIE Chair and Trustee Charlotte Crosswell

Chair and Trustee Charlotte Crosswell outlined the progress that has been made to address the findings and recommendations of Alison White’s review of OBIE.

16.11.21 – VRPs for Sweeping timeline agreed

The CMA provided additional clarity regarding the implementation timeline for VRPs, which were revised to allow ecosystem participants to pilot new propositions in early 2022, while also ensuring that the CMA9 have the appropriate amount of time to implement VRPs for sweeping by mid-2022.

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For further information, please contact: press@openbanking.org.uk

About Us

The Open Banking Implementation Entity (OBIE) is the entity set up by the CMA in 2016 to deliver open banking. Its trading name is Open Banking Limited.

The OBIE is governed by the CMA and funded by the CMA 9 (Allied Irish Bank, Bank of Ireland, Barclays, Danske, HSBC, Lloyds Banking Group, Nationwide, Natwest Group and Santander). It works with the CMA 9, as well as challenger banks, financial technology companies, third party providers and consumer groups. The OBIE’s role is to:

Download open banking highlights – October 2021

330 regulated providers made up of 239 third party providers and 91 account providers, with 123 regulated entities that have at least one proposition live with customers

Commenting on the October highlights, Charlotte Crosswell, OBIE Trustee and Chair, said:

“Since joining the OBIE, I have been extremely impressed by the work going on behind the scenes across the ecosystem to take open banking mainstream. There is so much potential in terms of empowering consumers and small businesses to use their data to unlock better financial products and services. This in turn will stimulate financial innovation and drive greater collaboration between banks and challengers in the interests of their customers. I am particularly excited by the great momentum in open banking payments, and I look forward to that continuing.”  

Powered by open banking

PensionBee and Plaid join forces to help tackle chronic pensions under saving  

Online pension provider PensionBee and open banking platform Plaid have partnered to help people save more easily into their pension pots. Rather than typing out card numbers or manually setting up direct debits, PensionBee has enabled a “click, confirm, and carry on” experience within its app, while an estimated two-week process will be almost instant via Plaid’s platform. Going forward, PensionBee aims to integrate with Plaid’s open banking network to allow customers to connect their external financial accounts with their customer dashboard and easily consolidate old workplace pensions when they change jobs.

55% of UK credit providers plan to implement open banking by 2022

Equifax’s latest open banking research report found that 93% of credit providers expect to adopt open banking systems in the next 12 months. Nearly one in five respondents said they have fast-tracked plans due to Covid-19, highlighting open banking’s importance to businesses as we shift closer to a digital-first economy. The report also found that 80% of consumers would be willing to recommend open banking services to friends and family.

Volt and Worldline team up to expand access to open banking solutions 

Volt has partnered with Worldline, the French payments and transactional services firm, to give over 600 enterprise-level merchants globally access to Volt’s open payments infrastructure, driving significant levels of transaction volumes. This will allow Worldline’s customers to launch their own branded payment method with real-time settlement and substantially lower fees, leading to an improved user experience and conversion rates.

The Paypers: Open banking flying full speed ahead

This report looks at exponential M&A activity within the industry, and the impact of explosive TPP growth and firms like Plaid, TrueLayer and Tink moving into the payments space. Analysis from Accenture, built on data sets covering 20 of the largest economies responsible for over 75% of global GDP worldwide, suggests that as much as USD 416 billion in revenue will be at stake as the open data wave arrives. It’s expected that this trend will continue as incumbent, larger players want greater access to new products and services, and budding start-ups need the capital to flourish.

Key Highlights    

08.10.21 – Charlotte Crosswell is appointed Trustee and Chair of the OBIE 

Long standing fintech expert and thought-leader Charlotte Crosswell was appointed Trustee and Chair of the OBIE and tasked with leading the planned transition to the future arrangements of open banking in the UK.

11.10.21 – HM Treasury’s response to Payments Landscape Review 

The UK government has set out four priority areas for the payments landscape: strengthening consumer protections within faster payments; unlocking the future of open banking-enabled payments; enhancing cross-border payments; and future-proofing the regulatory and legislative framework that governs payments.

21.10.21 – OBIE publishes version 3.1.9 of the Open Banking Standard 

The OBIE published a revised version of the Open Banking Standard. The update incorporates further API specifications, customer experience guidelines, updated guidance on data handling and consent management, as well as guidance for TPPs when using VRPs for sweeping.

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For further information, please contact: press@openbanking.org.uk

About Us

The Open Banking Implementation Entity (OBIE) is the entity set up by the CMA in 2016 to deliver open banking. Its trading name is Open Banking Limited.

The OBIE is governed by the CMA and funded by the CMA 9 (Allied Irish Bank, Bank of Ireland, Barclays, Danske, HSBC, Lloyds Banking Group, Nationwide, Natwest Group and Santander). Its works with the CMA 9, as well as challenger banks, financial technology companies, third party providers and consumer groups. The OBIE’s role is to:

The Open Banking Implementation Entity (OBIE) is pleased to announce the publication of the ASPSP MI Specification which is part of the Open Banking Standard version 3.1.9.

The Standard now includes further clarifications to help ecosystem participants further improve their open banking products and services.

In the seven months since v3.1.8 was published, our ecosystem participants have requested several clarifications which have been included in this version.

The OBIE has logged 10 issues. These have been subsequently addressed and you can find out more details via the TDA decision 240. You can see the updated specification here.

Latest FAQs
We have also updated the FAQs section of the Open Banking Standard and this will be of significant interest to organisations implementing Variable Recurring Payments (VRPs) for sweeping.

We have reviewed all historical queries logged with our helpdesk and provided clarification on key topics being discussed by ecosystem participants.

Download open banking highlights – September 2021

331 regulated providers made up of 238 third party providers and 91 account providers, with 114 regulated entities that have at least one proposition live with customers

Commenting on the September highlights, David Beardmore, Ecosystem Development Director, said:

“It’s been brilliant to see that more than one billion pounds of tax has been paid to the Government using open banking payments since March. It is tremendous to see this level of success so early in its journey. While elsewhere, its recent one-billion-dollar valuation has led to open banking platform Truelayer reaching ‘unicorn’ status.”

Powered by open banking

HM Revenue & Customs hits £1bn milestone with use of open banking

HM Revenue & Customs (HMRC) has reached a significant open banking milestone. The department confirmed that a total of at least £1 billion in tax – via more than 500,000 individual payments in total – has been paid to the government using open banking technology since it engaged open banking platform Ecospend, to enable it to collect tax payments in this way.

 

Token publishes a new survey report on VRPs and sweeping

Following the CMA’s decision to mandate VRP’s for sweeping, Token has commissioned some research that reveals VRPs are poised to ignite further explosive growth for open banking payments as they make finance smarter. Notably, the research found that the most compelling use cases are subscription service payments, utility bill and one-click e-commerce payments; that disputes and reversing the flow of funds is the greatest concern around VRPs; and that 100% of merchant responders would choose to make VRPs available to consumers as soon as possible.

Keebo improves its offering by partnering with Yolt

Recently launched credit card company Keebo has announced a strategic partnership with Yolt to improve business efficiencies, cost reduction, and the front-end user experience. With the appropriate consent, credit applicants can link their financial history through the Keebo app, which allows the underwriter to obtain a real-time snapshot into a borrower’s financial health and analyse spending habits, savings, and investments. By using the open banking functionality, Keebo expects to gain efficiency advantages for its underwriting processes as it aims to provide a better user experience for its credit card customers.

TrueLayer valuation earns it unicorn status

After closing an additional investment round of $130m, TrueLayer became the latest UK-based fintech to reach a valuation of over $1 billion and earn ‘unicorn’ status. There are believed be around 33 active unicorns in the UK. The firm’s growth is testament to growing investor appetite for disruptive finance and the industry’s demand for API banking.

Zopa finds that many UK consumers would use open banking to get better access to credit

New research from open banking platform Zopa has looked at how the introduction of open banking to previously untapped customer needs, like access to credit, could rapidly accelerate this adoption, benefitting up to 40 million active users by 2025. The results of the study estimate that around 40% of UK consumers would make use of open banking to apply for credit if it improved their chances of getting an offer, gave access to better rates, or made the application process faster and hassle-free. This optimism towards technology was in spite of the fact that 63% said they had never heard of open banking before.

Vyne raises $15.5M seed round to grow its merchant-focused open banking solutions

London-based Vyne has officially opened for business and announced seed funding of $15.5 million from an oversubscribed funding round. Already processing millions of pounds in transactions in the UK each month, growing currently at a rate of 95% each month, Vyne mainly targets merchants, as opposed to consumers, to help them build open banking-based payment services.

Key Highlights    

24.09.21 – Utility Week panel “Hitting back at rising consumer debt: the role of open banking”

Constanza Castro Feijóo, the OBIE’s Stakeholder Engagement Manager, joined a panel hosted by Yolt to discuss the debt and affordability of utilities as prices continue to rise. The crux of the discussion revolved around using open banking technology as a tool to combat rising consumer debt challenges. Alongside Constanza were representatives from the energy and water sector who shared the challenges and breakthroughs they have undergone in open banking technology trials.

28.09.21 London Society of Chartered Accountants FinTech summit:

David Beardmore, the OBIE’s Director of Ecosystem Development, delivered the keynote address at the ICAEW Fintech Summit in London, which sought to explore how financial technology can support the accountancy profession. To this end, during his address, David outlined the benefits of open banking technology and highlighted a number of use cases for both consumers and small businesses.

 – – – ENDS – – –

For further information, please contact: press@openbanking.org.uk

About Us

The Open Banking Implementation Entity (OBIE) is the entity set up by the CMA in 2016 to deliver open banking. Its trading name is Open Banking Limited.

The OBIE is governed by the CMA and funded by the CMA 9 (Allied Irish Bank, Bank of Ireland, Barclays, Danske, HSBC, Lloyds Banking Group, Nationwide, Natwest Group and Santander). Its works with the CMA 9, as well as challenger banks, financial technology companies, third party providers and consumer groups. The OBIE’s role is to: