Open banking payments sees 100% year-on-year growth

Month-on-month growth, meanwhile, is running at around 10% while there are currently 159 fully regulated firms with live open banking-enabled products available to consumers and businesses. This figure has remained broadly flat since March 2022, with three new services launching and five exiting the market.  

Of the 159, the market remains mostly dominated by financial decision-making proposition – 49 – expanded payment choice – 45 – and better borrowing – 27. However, there has been an emergence of propositions including identity services, charity round ups, private banking and supporting with tax calculations.  

The data also shows most providers are targeting both consumers and small businesses, making up 48% of those available, while 30% focus exclusively on consumers and 22% on small businesses only.  

Additionally, there are around 750,000 small to medium-sized enterprises using open banking products, and despite there being more products being available to consumers, adoption by businesses is higher than consumers with a 16% penetration rate versus 11%. The latest data also show this gap is widening and is largely down to more small businesses using cloud accounting software.  

Marion King, chair and trustee at OBL, said: “It is encouraging to see a continued and steady increase in the adoption of open banking products and services, particularly by the UK’s small firms which are seeing tangible benefits from real-time business insights offered by open banking data.

 
“It is also exciting to see the expansion of services in key areas such as borrowing and financial decision-making, empowering people to make better informed choices about managing their money, which is crucial as we face an increased cost of living.”