Open Banking is taking a firm hold in the UK, with user numbers doubling to two million in just over six months.
The latest figures from The Open Banking Implementation Entity (OBIE), the body set up by the Competition and Markets Authority (CMA) to deliver open banking in the UK, show a steady increase at a rate of around 160,000 users per month.
The upshift comes as more consumers seek to gain control over their own data in order to better manage their finances during the Covid-19 pandemic.
Open Banking used to be the best kept secret in financial services. With 2 million 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. Open banking enabled products are rebalancing the market in favour of consumers and small businesses. Users are now able to engage more with their finances and getting access to better products.”
Imran Gulamhuseinwala of the OBIE
The OBIE report that Open Banking can be used in multiple ways to help users access their banking data and better manage their finances.
Examples of this include:
- Multi account visibility: Personal financial management apps aggregate bank account information, which in turn gives customers spending analysis and support in setting saving goals
- Access to credit: Giving banks and credit providers access to banking transaction data enables them to make more informed lending decisions, opening a much wider range of borrowing solutions and potential better lending rates for the customer.
- Debt management: Open Banking allows a customer to provide an immediate and accurate view of their debt picture to a debt advice platform This enables customers to get the best support when they have a debt management problem.
- Applying for mortgages: Unlocking your financial data both simplifies and speeds-up the mortgage application process without the need to send physical bank statements
The Open Banking App Store, houses more than 80 open banking mobile applications and online products so that consumers and businesses can easily identify the one that best suits their needs.
More: Open banking product usage surges in UK.
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