Users of open banks in the UK exceeded 5 million amid the tech boom

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The number of active users of open banking services in the UK has now exceeded five million – just four years after the practice was introduced into regulatory requirements in the UK.

Data of CMA9 – consisting of nine banks and construction companies under the auspices of the Office of Competition and Markets (CMA) for open banking – shows that users of open banks in the UK jumped from four million in September 2021 to five million in January 2022.

Open banking is a process that allows third-party financial service providers to gain secure access to consumer banking information, which has contributed to the significant growth of the UK technology market.

Using open APIs, developers can build applications based on financial services, such as a chatbot that tracks consumer spending in a single institution.

Accelerated growth to more than five million active users shows the momentum that open banking platforms are building: the jump from one million to two million users is reported to take 10 months, compared to a four-month gap from four million to five million.

Payments made through open banking services have also risen sharply: data show that in January 2022 there were slightly less than 625,000 open bank payments than in December 2021, up 3.86 million last month.

Charlotte Crosswell, a trustee of the Open Banking Implementation Entity (OBIE), said: “This accelerated growth is confidently the world’s leading and thriving ecosystem that delivers an ever-growing range of real solutions, which in turn stimulates mass user acceptance.

“As open banking technology becomes embedded and easier to use, we look forward to continuing this momentum.”

The massive introduction of an open banking system in the UK has led to significant growth among challenging banks such as Monzo, which in December 2021. reached $ 4.5 billion.

Other beneficiaries include Starling and Atom Bank. This is when British tech companies have raised a a record £ 8.5 billion in 2021, the largest of all sectors.

Carl McGregor, co-founder and CEO of London-based Vyne Open Banking, said: “Payments made through an open bank are more cost-effective, transparent and unhindered, benefiting both consumers and traders.”

McGregor added: “The achievement of five million users is a testament to the ongoing innovation and collaboration of providers of open banking products and services, as well as the vitality of the ecosystem.”



Users of open banks in the UK exceeded 5 million amid the tech boom

Source link Users of open banks in the UK exceeded 5 million amid the tech boom