Demand for open banking grows as user numbers exceed two million

More than two million customers are now using open banking-enabled products in the UK, according to the latest findings by the Open Banking Implementation Entity (OBIE), the body set up by the Competition and Markets Authority (CMA) to deliver open banking.

OBIE figures show open banking user numbers have doubled since January 2020. There has been a steady increase at a rate of around 160,000 users per month. This plateaued in April and May, when lockdown measures were introduced in the UK, before the strong growth resumed.

According to the survey of 2,000 UK adults in early July 2020, one in five started using online banking apps during lockdown, and 54 per cent now use them regularly.

“Open Banking hit the one million customer milestone – within the UK – at the New Year. To have hit the two million customer milestone only months later is testimony to the value that this technology is adding to our banking and payment ecosystems,” said Brian Hanrahan, Chief Commercial Officer at Nuapay.

“It’s really positive to see Open Banking user numbers doubling in such a short of time,” added Freddy Kelly, co-founder & CEO of credit reference agency Credit Kudos. “Open Banking technology has been crucial in maintaining access to credit … and enables lenders to make more informed decisions, opening a much wider range of borrowing solutions and potential better rates for customers.”

“Open Banking used to be the best-kept secret in financial services. With 2m active monthly users and growing strongly that is clearly no longer the case. We can now see that people want to exercise their rights over their data and will do so, as long as you make it simple and secure,” said Imran Gulamhuseinwala OBE, Trustee of the OBIE.