UK Open Banking payments double in volume

The adoption of Open Banking continues in the UK, with over 11% of British consumers being active users, an increase from only 7% in December 2021. Since the last Open Banking Impact Report, using data up to December 2022, there has been a 10% increase in retail users and a 5% growth in business users of Open Banking. However, the company reported that business penetration remained higher at 17%, compared to 11% among consumers. OBL used data from Pay.UK in its report, with data showing that the total monthly value of Open Banking payments is nearly GBP 4.5 billion, with the average transaction value being approximately GBP 450.

Small and medium-sized enterprises (SMEs) continue to be at the forefront of Open Banking adoption, with 17% active users. The accelerated increase in adoption represents a piece of evidence of the capability of Open Banking technology to enable innovation, improve productivity, create efficiencies, and reduce costs. Officials from OBL stated that the latest data shows that the adoption of Open Banking has been driven by payments, together with the emergence of new providers and advanced products which aid consumers and SMEs to budget and save in a more convenient and effective way.

Even if significant progress has been made until now, there are still other improvements to be made in order to fully optimise the benefits of Open Banking within retail banking markets, according to representatives. OBL is currently working with industry, government, and regulatory authorities on the next phase of Open Banking to develop and expand the range of benefits available to consumers and SMEs. 

At the end of February 2023, OBL announced that the number of consumers and SMEs actively using Open Banking services in the UK reached 7 million. The numbers were reported to OBL by the CMA9, the UK’s nine largest current account holders that were delegated under the Competition and Markets Authority (CMA) Order to employ Open Banking in the UK. Data showed that 1.2 million of the 7 million were first-time users of Open Banking, leveraging cost-effective credit, regular savings habits, and more informed financial decisions. Through the implementation of Open Banking, the UK wants to deliver the means for citizens to improve their overall financial well-being. 

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