Exclusive: UK reaches 6m open banking users

By Amelia Isaacs on Friday 17 June 2022

Alternative LendingDigital BankingSavings and Investment

The OBIE revealed that open banking payments are growing 500% YoY at AltFi’s Open Banking Forum 2022.

Exclusive: UK reaches 6m open banking users
Image source: Constanza Castro Feijóo.

 

Less than four months after reaching a milestone of 5 million open banking users, the UK has hit a new record of 6 million users.

The industry has clearly come a long way in the past few years — a big leap from taking 10 months to move from 1 to 2 million users back in 2020.

In the last month alone, 5 million open banking payments were made, and open banking payments have grown at a rate of 500 per cent year-over-year.

Open Banking Implementation Entity (OBIE) head of stakeholder engagement Constanza Castro Feijóo revealed the news exclusively at the AltFi Open Banking Forum 2022 yesterday.

She said the rise in the number of payments and users is evidence of how end users are choosing to pay, and the increasing switch to a fast, frictionless, more secure way of paying.

“The OBIE is here to support and collaborate,” Feijóo said.

“We’re still here to deliver our obligations under the CMA, to complete the road map, and of course still do business as usual.”

This steep increase in use underlines the importance of government and regulator commitment to the future success of open banking, Feijóo explained, to ensure there is continued momentum.

“We want to support seeing harmony across the different sectors, and open banking has set the foundations for this,” she said.

“The ideal scenario would be for an individual to see all their finances in one place, all their consent in one place and not have to redo all your consent,” Feijóo added.

Open Banking Excellence founder and CEO Helen Child, echoed her sentiments.

“To have all your consent in one place just makes sense,” she said.

When asked what was driving this growth, Feijóo replied succinctly: “The industry”.

“[In] the UK, HMRC is an excellent use case,” she said, referring to the over £2.5bn that taxpayers have paid to HMRC through open banking payments.

“In only the last month they reported over £5.5bn collected for just the HMRC.

“If we think about the efficiencies that open banking payments brought for that organisation, and of course that the HMRC is the first government in the world to adopt open banking payments, that’s massive.

“So open banking brings and enables those efficiencies and I believe that those are the key things that are driving and supporting this number of adoption and users to grow.”

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