Open Banking, the initiative aimed at increasing competition, encouraging disruptive product development and providing consumers with more choice in the UK’s banking sector officially celebrates its first birthday this weekend (13th January).
Since Open Banking began its managed rollout at the start of 2018, the sheer number of users and connections has exploded. The Open Banking Implementation Entity (OBIE) has reported there are now 100 regulated providers of which 17 Third Party Providers (TPPs) are now using Open Banking in the UK. Open Banking technology was reportedly used 17.5 million times in November last year, up from 13.9 million in October and 6.5million in September. Furthermore, API (Application Programming Interface) calls now have a success rate of 97.7%.
Leon Muis, COO, Yolt, comments:
“Celebrating Open Banking’s 1st birthday provides us with a great opportunity to look back over the last year and see just how far the industry has come. The number of financial services firms engaging with API integrations has grown considerably and consumers are already benefiting from more personalised products and services that simply weren’t possible a year ago.”
The success of Open Banking in its first year is also measurable in the growth experienced by TPPs. Yolt, the smart thinking money app, which was the first TTP to successfully connect to all CMA9 banks using the Open Banking APIs in September 2018, surpassed half a million registered users last year; empowering more consumers to be smart with their money. Just as the number of users has risen, Yolt’s activity has also grown: from just 3 API calls on January 16th to completing 3.5 million API calls per week by November 2018. This means that Yolt was responsible for over 80% of all Open Banking API calls in November alone.
Leon Muis, COO, Yolt, continues:
“2019 looks set to be an exciting year for Open Banking as we see the legislation really take hold and move into the next phase to include Credit Cards and Savings plus the increasing availability of PIS (Payment Initiation Service) APIs. The success of APIs has been proven and it is now time for all UK banks to improve the quality and availability of their APIs to enable more consumers to benefit from Open Banking. Taking this Internationally, the UK has proven legislative success, with the implementation of PSD2 imminent, European banks should take note and ensure they are ready.”
Imran Gulamhuseinwala OBE, Trustee of the Open Banking Implementation Entity, comments:
“Today, we have over 100 regulated entities enrolled in Open Banking with in excess of 100 waiting to join. With the line of sight we have into the Open Banking “pipeline”, this is going to considerably ramp up in 2019 and we expect Yolt to continue to play a leading role. Our focus for 2019 is firmly fixed on delivering an enhanced user experience – I am confident that post March and with the implementation of v3 of our Standards – will see a more mobile-enabled and frictionless customer journey.”