Marking the fourth anniversary of PSD2 becoming a regulatory requirement across the EU, the UK’s Open Banking Implementation Entity (OBIE) issued a statement citing the substantial adoption of the initiative by 3.9 million consumers and 600,000 small businesses.
With a 60% increase from 2.8 million users in December 2020, OBIE also revealed that one million new users are added every six months and by the end of 2021, over 26, 6 million open bank payments had been made – an increase of over 500% in just 12 months.
This growth can be attributed to changes in early 2021 that led HM Revenue & Customs (HMRC) to become the first government department in the world to allow users to make open bank payments. Today, over £ 2.4 billion has been made using this method, which significantly minimizes the risk of fraud and customer error during payments.
2021 also saw the CMA vote in favor of the OBIE’s recommendation to mandate Variable Recurring Payments (VRP) as the mechanism for implementing the sweep in July, which was covered in this lengthy Finextra read.
Charlotte Crosswell, President and Director of OBIE, said: “The progress the industry has made over the past four years in making UK open banking a success has been astounding. I am proud of the contribution OBIE has made, enabling and supporting breakthrough financial innovation and collaboration across the industry. This would not have been possible without a strong regulatory framework and forward thinking policy makers to support our work. We have set a high standard in the UK, inspiring many other markets to follow our lead.
“Ultimately, I’m excited that we’re starting to see how open banking gives people more control over their money. The pandemic has changed consumer behavior, with increased use of digital and financial services. We continue to see customer growth Along with new and exciting products, and as more and more users are introduced to the market, open banking will become more and more mainstream. This will be the key to doing so. increase user adoption from over four million to tens of millions.
“OBIE’s new board remains committed to strengthening our governance and culture, a key goal as we move open banking to the next phase of its journey. “
Andrea Coscelli, Managing Director of CMA, added: “Four years ago, we ordered banks to give people control over their own data, helping to transform the industry, spur innovation and spur competetion. This led to two million more people signing up to the banking system opened last year. We are working closely with OBIE to strengthen governance and ensure that even more users are making the most of the potential of open banking in 2022 and beyond.