UK leads Europe for Open Banking maturity, Yapily data shows

Monday 11 July 2022 15:22 CET | News

Open Banking infrastructure provider Yapily has released its annual European Open Banking league table, placing UK at the top of the countries achieving maturity in Open Banking.

Yapily has ranked 18 European countries on a 10-point scale according to the maturity of open banking in each market. The league table is based on criteria including local regulatory oversight and enforcement, digital readiness of the population, domestic payments infrastructure, bank integrations, presence of third party providers (TPPs), and API performance and standardisation.

There are now 6 million active users and Open Banking payments are growing 500% YoY, according to the latest statistics from the Open Banking Implementation Entity (OBIE), cited by Business Leader. The UK also holds the highest number of registered third party providers in Europe, helping to boost the development of its Open Banking ecosystem.

Close behind is Germany, given its strong regulatory supervision and usage of Berlin Group’s API standards, the most prescriptive after those adopted by the UK’s OBIE. In third place Sweden leads some good results for the Nordics in this year’s table, with regional regulatory regimes, developed digital infrastructures, and a collaborative approach to cross-border payments driving open banking maturity in the region.

Challenges ahead for Open Banking growth

As ecosystem continues to evolve, better collaboration between banks, governments, regulators, and TPPs at the local and EU level is needed to address a lack of standardisation and inconsistent levels of regulatory oversight and enforcement.

Yapily officials indicated the league table shows that Europe is making significant strides in Open Banking, but all parties involved must continue to build on this evolution. The industry is on the brink of ‘a financial revolution that will help to create better and more accessible financial services for everyone’. 

Whilst the ecosystem as a whole is moving in the right direction, discrepancies across EU member states could slow the rate of progress. Although the European Commission has proposed to implement an open finance framework by 2024, member states that are still behind in Open Banking could face a number of interoperability challenges, exacerbating the fragmentation that already exists, Yapily officials continued to explain.

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Keywords: Open Banking, BaFin, Open Banking Ecosystem, Open Data Economy
Categories: Banking & Fintech
Companies: Yapily
Countries: United Kingdom
This article is part of category

Banking & Fintech


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