Open Banking has led to greater competition and innovation in UK retail banking. It has brought real benefits by allowing consumers and businesses to share their data with trusted third parties who can help them manage their money more easily. Open Banking also lets consumers and businesses make payments directly from their accounts, providing a secure and cost-effective alternative to using card networks.
It helps users make better-informed decisions and make the most of their finances with individual financial management dashboards. It also improves users’ access to credit, including for consumers in vulnerable circumstances.
It has been a UK success story, with significant take-up and ever-accelerating growth. Many other countries have looked to the UK’s approach as they develop their own models.
The Government and regulators are committed to maintaining the UK’s leadership in the field and sustaining this momentum. We want to build on the initial success of UK Open Banking to help unlock and realise further benefits for consumers, businesses and the wider economy.
Open Banking should continue to support innovation and greater competition for consumers and businesses. Critical to this will be establishing an appropriate successor to the Open Banking Implementation Entity (OBIE), which has played a central role in developing the UK’s Open Banking ecosystem.
It is important that its successor is overseen effectively, as the Competition and Markets Authority (CMA) has done since 2017.