Open Banking hits 1m users
More than one million customers have made use of Open Banking technology in the two years since the tool came into effect.
Open Banking was introduced in 2018 to allow bank accounts to be connected with trusted third parties.
It can be used by peer-to-peer lenders to more easily assess borrower applications by accessing their financial data using application program interfaces.
The Open Banking Implementation Entity (OBIE) – the body set up by the Competition and Markets Authority (CMA) to deliver Open Banking in the UK – said the number of users has doubled in the past six months.
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“One million is a significant milestone, but by no means is it the end. Open Banking is about giving customers access to their data to rebalance the market in their favour,” Imran Gulamhuseinwala (pictured), trustee at the OBIE, said.
“By creating greater competition, we are seeing innovation from new entrants and incumbents, which is leading to greater convenience and crucially greater engagement.
“We believe 2020 will be the year when adoption of Open Banking financial services really takes off.”
Open Banking currently covers personal and business current accounts, credit cards and online e-money accounts. Currently there are 204 regulated providers, up from 100 at the end of 2018, the OBIE said.
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