Open Banking Limited (OBL) has today announced that the number of consumers and SMEs actively using Open Banking powered services in the UK has reached 7 million for the first time.
User numbers are reported to the OBL by the CMA9, the banks and building society mandated under the CMA Order to implement Open Banking in the UK, and figures for January show that the combined figure tipped 7 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.
Marion King, Chair and Trustee of OBL, said:
“Open Banking is good for the nation, increasing competition and allowing consumers and SMEs to benefit from new and innovative ways to manage their financial lives. It is encouraging to see that 7 million people have been empowered to take advantage of the benefits of Open Banking.
“As we await key recommendations on the future vision for Open Banking from the Joint Regulatory Oversight Committee, this strong growth underlines the need to continue the momentum so that the many benefits of Open Banking are developed, promoted, and made available to millions more of our citizens.”
Henk Van Hulle, Chief Executive Officer of OBL, said:
“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.”
Notes to editors:
1. Open Banking Ltd (OBL) was set up by the CMA9 in September 2016 as required under the Competition & Markets Authority’s (CMA) Retail Banking Market Investigation Order 2017 to fulfil one of the remedies mandated by the CMA following a market 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. OBL’s role is to:
• Enforce the obligations on the CMA9 under the CMA Order.
• Design the specifications for the Application Programme Interfaces (APIs) that banks and building societies use to securely provide Open Banking.
• Support regulated third party providers and banks and building societies to use the OBIE’s Open Banking Standards.
• Create security and messaging standards.
• Manage the OBIE’s Open Banking Directory which allows regulated participants like banks, building societies and third-party providers to enrol in Open Banking.
• Produce guidelines for participants in the Open Banking ecosystem.
• Set out the process for managing disputes and complaints.
OBL spokespeople are available on request.
For enquiries, please contact: CiceroOpenBankingPR@cicero-group.com, 020 7297 5965