Open banking use rises by “exceptional” 102.4pc
The number of people using open banking to make payments rose by an “exceptional” 102.4 per cent between June 2022 and June 2023, new data has shown.
According to new figures from Open Banking Limited, 11.4 million payments were made using open banking in July 2023 – a record high. This represents a 9.3 per cent increase on the previous month.
Furthermore, the number of active payment users grew by 10.5 per cent month-on-month, to reach 4.2 million. Open Banking Limited said that this “robust” growth suggests that there is a clear preference among consumers using open banking solutions to manage their finances effectively.
“The strong and sustained growth in open banking payments underscores the rapid pace at which open banking is reshaping the financial and payments landscape,” said Marion King, chair and trustee of Open Banking Limited.
“It reinforces the pivotal role open banking plays in driving financial inclusion, innovation, and consumer empowerment.
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“As open banking continues to redefine the way people manage their finances, the doubling of total payments in just one a year is a remarkable achievement and testament to the transformative impact of open banking.”
Open Banking Limited found that the use of the technology accelerated in July due to the introduction of a number of ‘pay by bank’ options, which have been rolled out by financial services firms across the country. This option allows users to fund a wide variety of savings and investment products with just a few clicks.
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The most popular uses of open banking include account top ups, credit card bill payments, and e-commerce.
“It is fantastic to see how many consumers have benefited from open banking since the Competition and Markets Authority (CMA) retail banking market investigation order was issued in 2017,”said Sarah Cardell, chief executive of the CMA.
“Open banking has transformed the way millions of people manage their money and today’s announcement is further evidence of the significant progress that has been made since 2017.”
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