Open Banking adds 5 million users in the UK

The number of people actively using open banking in the UK has reached five million.

These figures are based on data provided in January 2022 by the CMA9, the nine banks and building societies mandated under the order of the Competition and Markets Authority (CMA) to implement open banking UK.

When the standards turned four in January this year, 4.5 million regular users, broken down into 3.9 million consumers and 600,000 small businesses, were using them. As of December 2020, the number of adopters was 2.8 million.

Additionally, more than 26.6 million open bank payments had been made by the end of 2021, 500% more than the same period the previous year.

In addition, the rate at which standards are adopted is accelerating. It took 10 months to grow the number of users from 1 million to 2 million in 2020. However, it only took four months to grow from 4 million to over 5 million.

The increase in the number of payments made via open banking has contributed to the recent growth – almost 625,000 more payments in January 2022 compared to December 2021.

A significant factor in this growth in payments was HMRC’s incorporation of a ‘pay by bank’ option into its annual self-assessment process, which brought the total number of payments made through open banking to 3.86 million in January 2022. This is an increase of 19.3% in December 2021.

Charlotte Crosswell, Administrator of the Open Banking Implementing Entity (OBIE), said, “Open Banking was about increasing competition and providing consumers and small businesses with new and innovative solutions. It is therefore extremely encouraging to see that more than 5 million active users are now enjoying the benefits of open banking.

“This accelerated growth strongly represents a leading and thriving ecosystem offering an ever-growing range of real-world solutions, which in turn is driving mass user adoption.

“As open banking technology becomes mainstream and easier to use, we look forward to seeing this momentum continue.”

Open banking came into effect with the introduction of the Payment Services Directive 2 (PSD2) on January 13, 2018. This made the standards a regulatory requirement in the UK.

The legislation meant that third parties could access the banking infrastructure, opening the way for a greater variety of services and products.

PSD2 aimed to make electronic payments more secure across Europe, helping the banking sector to adopt new technologies, drive innovation and protect consumers.

OBIE’s new CEO, Henk Van Hulle, said: “What a great time to join OBIE! This is great news for the open banking community. I’m thrilled to see such accelerated growth in end-user adoption rates.

“This demonstrates that the tremendous efforts of everyone across the ecosystem continue to pay off. It also shows what a great job the OBIE team is doing in building and managing the supporting infrastructure. »


Additional research from last year noted that 74% of merchants plan to adopt open banking standards. According to her, more and more merchants were tempted to use the standards to offer instant bank transfers.

The growing customer base is good news for the Scottish fintech ecosystem, which has many companies using the standards.

These companies include OneBanks which allows users to consolidate and access their bank accounts from one place.

Nude, meanwhile, offers a savings account, money coach, and app designed to help savers better understand their finances and the homebuying process.

Sustainably allows its users to round up cashless transactions and donate the excess to charity.

David Beardmore, director of ecosystem development at OBIE, said that in addition to increased adoption, the numbers clearly demonstrate that open banking is here to stay.

“This is good news for everyone involved in open banking – for the entrepreneurs who have built fintech businesses based on the foundations of open banking, for the investment community funding the continued expansion of products and services, and for government as it continues to consider how best to extend open banking functionality to other sectors of the economy.

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