Open finance and open banking continue to grow as new research from Open Banking Limited (OBL), the firm which built the UK’s open banking standard, reveals that one in five consumers and businesses are now using the technology.
The technology’s growth is clearly seen when compared to adoption stats in 2021. In March, only one in 17 consumers and businesses used the technology. Now there are 13.3 million active open banking users in the UK according to OBL’s Impact Report, up 40 per cent from 2024. In fact, this is the first time consumer adoption has almost reached the same level as small business adoption since 2018 when the tech launched.
To mark the launch of the report, OBL is bringing together policymakers, regulators, financial institutions, and fintech innovators at an industry roundtable. Those invited will discuss how the sector can build on progress made to date and unlock further innovation and growth as the new long-term regulatory framework (LTRF) is established by the Data (Use and Access) Bill.
Luke Ryder, OBL policy and strategy director, said: “Open banking is no longer a promise – it is a reality that’s delivering tangible impact at scale. We are seeing a dynamic, user-led ecosystem emerge – one that helps people manage their finances, boosts SME productivity and improves access to credit.
“This report proves that when industry, government, and regulators work together with purpose and trust, we can build financial systems that are open, inclusive, and competitive.”
Adoption in payments
Painting the clearest picture yet of the tech’s real-world impact, the report highlights that 31 million open banking payments were made in March this year alone, with usage expanding into sectors such as travel and e-commerce, as well as credit card payments and saving account deposits. This is equivalent to one in 13 or 7.9 per cent of all Faster Payments.
The report also found that there was 70 per cent year-on-year growth of open banking payments with variable recurring payments (VRPs) now accounting for 13 per cent of the total. Additionally, it revealed there are 145 third-party providers (TPPs) which offer a live-to-market open banking proposition.
Euan Ballantyne, product director, Pay.UK, said: “The consistent and significant growth in open banking payments processed via Faster Payments is a very positive sign that A2A retail payments are becoming increasingly widespread across the ecosystem.”
Luke Charters, MP for York Outer, said: “Open banking plays a key role in delivering the Government’s National Payments Vision and its wider efforts to stimulate economic growth across key industry sectors.
“It’s brilliant to see that one in five of my constituents and small businesses are using open banking-powered products and services, giving them greater control over their money and access to real-time data insights to help them run their businesses more efficiently.”
