The UK is rapidly expanding its open banking efforts and adding new users to the ecosystem. This summer, the country reached 10 million open banking users — a total that includes consumers and small businesses alike.
Open Banking Limited (OBL), the entity responsible for building the UK’s Open Banking Standard, first reported the numbers in a July 2024 announcement.
It said that this growth occurred in a short time. The UK launched open banking in 2018 and established OBL in 2016, meaning that it achieved 10 million users in just a few years.
Users Are 15% of UK Population
In a separate report, PYMNTS estimated that the 10 million open banking users represent 15% of the UK population. Total usership was six million just 18 months earlier.
Marion King, Chair and Trustee of OBL, told PYMNTS:
“It’s a very good number … We’re seeing really strong double-digit growth. And I think this is just the beginning …”
King explained that current growth measures activity at the nine banks that took part in the Competition and Market Authority’s initial open banking effort. Because the total may not include other banks, true usership numbers could be higher.
Furthermore, King said that month-on-month double-digit growth demonstrates “pent-up demand for secure data exchange” — a core feature of open banking.
What Is Open Banking?
In open banking, customers permit banks to share their personal data with other third-party services; in turn, those customers can access interconnected services.
King listed several use cases for open banking in OBL’s announcement. She said:
“From access to cost-effective credit, building a regular savings habit or making more informed financial decisions, open banking is delivering the means for millions of people to improve their financial wellbeing, delivering a true public good.”
In the UK, certain applications are popular. King told PYMNTS that open banking has facilitated over £3 billion in tax bill payments since the start of 2024, representing a major use case.
King added that small and midsize businesses (SMBs) are using open banking in their activities. These companies can use open banking to integrate accounting packages, minimize manual systems, and improve their real-time cash flow management.
Additionally, organizations in the not-for-profit sector are using open banking to provide loans to underbanked individuals, she said.
Future Growth Is Expected
The UK intends to surpass 20 million open banking users through the launch of specific technologies like variable recurring payments (VRPs) — a trend already popular in Europe — and by increasing participation in open banking in general.
The UK notably announced the Digital Information and Smart Data (DISD) Bill in July, which will provide a foundation for open banking ecosystem growth.
If open banking fully reaches its potential, it will promote competition and empower users by providing new services and improving financial options overall.
