UK open banking is eight years outdated and able to develop into the broader economic system

Open banking within the UK is eight years outdated and has turn into a longtime a part of the monetary companies sector, however its subsequent section will see it assist create companies past retail banking.

Following the Competitors and Markets Authority’s Retail Banking Market Investigation Order in 2017, UK banks had been required to implement open banking rules, which led to the event of software programming interfaces (APIs) to offer shoppers extra management over their financial institution accounts.

It permits them to share their banking particulars with third-party apps and web sites, by way of the APIs, in the event that they select to. This makes utilizing companies simpler for shoppers and permits sooner software for companies.

The tip aim was to extend competitors in a retail banking sector dominated by large monetary companies corporations. Buyer banking knowledge is shared by the trade by way of APIs, with buyer permission, enabling companies to supply tailor-made merchandise. For instance, funds may very well be initiated by third-party suppliers and account info seen by way of them, or each. This may imply a 3rd get together might construct companies on prime of an account and permit the client to make use of these slightly than these provided by the financial institution.

Open finance, as open banking’s subsequent section is commonly described, will see companies share banking knowledge throughout extra companies, resembling mortgages and loans, additionally by way of APIs, and supply services from exterior organisations.

Customers and small and medium-sized enterprises might obtain companies which are applicable to them primarily based on their actual monetary necessities, and making use of for them can be much less laborious.

In accordance with figures from Open Banking Restricted (OBL), so far, in its eight years of existence within the UK, open banking has gained 16.5 million stay consumer connections, and about 33 million open banking funds had been made in a single month (November 2025).

OBL mentioned the tech-enabled companies have contributed £4bn to the UK economic system and nearly 5,000 expert tech jobs.

Henk van Hulle, CEO of OBL, mentioned: “In simply eight years, OBL has helped construct an ecosystem that folks and companies throughout the UK now use as a part of on a regular basis monetary life, typically with out even realising.

“The UK has created one thing genuinely world-leading; the precedence now’s to place the correct long-term constructions in place in order that benefit is protected and may proceed to develop to assist as many companies and shoppers as doable to higher have interaction with, and profit from, their funds.” 

The OBL mentioned: “The announcement additionally reveals how the requirements and infrastructure developed by way of open banking will underpin the UK’s subsequent transfer in direction of open finance and sensible knowledge following the Information (Use and Entry) Act 2025, with real-world use circumstances already rising throughout areas resembling mortgages and power switching.”

It mentioned the problem is increasing using the open banking mannequin into different sectors. “Safe knowledge sharing has the potential to unlock innovation properly past retail banking, supporting new companies throughout areas resembling pensions, investments, insurance coverage, power, telecoms and housing,” mentioned the OBL.

“The actual cross-sector worth is already rising; mortgages that recognise present account historical past; power switching that displays actual funds behaviour – these are verified attributes that journey with the consumer.”