Peer2Peer Finance News
The UK's first peer-to-peer finance magazine for investors and the industry
  • Home
  • News
    • Personal Finance News
    • Industry News
    • SME News
    • Global News
  • Property
  • IFISA
    • IFISA Guide
  • Video
  • Open Banking
  • Cryptocurrency
  • Features
    • Joint Ventures and Promoted Content
  • Comment & Analysis
  • What is P2P?
  • Partners
  • Events
    • Past Events
  • P2P Power 50
    • Power 50 2020
    • Power 50 2019
    • Power 50 2018
    • Power 50 2017
  • Sign up to our e-newsletters
  • Magazine
  • Directory
  • Jobs
  • My Account
    • Manage Account
    • Change Password
    • Log In
    • Log Out
open banking concept diagram, api financial technology, fintech
January 13 2021

Open banking reaches 3-year anniversary

Michael Lloyd Industry News, News, Top 3 Dan Weaver, Equifax UK, Imran Gulamhuseinwala, open banking, Open Banking Implementation Entity

Today marks the third year since open banking became a regulatory requirement.

On 13 January 2018, the European Union’s Payment Directive Services 2 came into force to introduce the data-sharing initiative aimed at increasing competition and choice for consumers and small businesses.

Read more: Lending Works chief urges lenders to adopt open banking

Since 2019, the number of third-party providers, the businesses which use open banking technology, has increased to 294.

In 2018, 320,000 open banking payments were made and this rose to over 3.4 million in 2020.

The number of people using open banking to move, manage and make the most of their money has increased from one million in January 2020, to two million in August last year and 2.5 million people today. This shows growth of one million new users every six months.

Read more: ThinCats notes “great advantage” of open banking for cashflow lending

The number and range of new product offerings has  also risen. As of December 2020, 294 regulated providers were in the ecosystem, with 102 having live offerings in the market.

The number of API calls has increased from 66.8 million in 2018 to almost 5.1 billion in 2020 while API call volumes reached 6.5 billion between 2018 and 2020.

Read more: Open banking directory launched

Since its inception, the UK’s Open Banking Implementation Entity (OBIE) has worked closely with the government and regulators to create an ecosystem for open banking that allows for innovation.

OBIE said open banking is on its way to revolutionising the way individuals and businesses can use their financial data for their benefit.

“Open banking used to be the best kept secret in financial services,” said Imran Gulamhuseinwala, implementation trustee of OBIE.

“We have worked hard to develop the open banking infrastructure and functionality over the past three years and our significant progress is reflected, not only in the millions of active users of open banking technology each month, but in the sustained momentum of growth we are seeing.

“We have developed a world-leading, thriving ecosystem of nearly 300 regulated providers, who collectively are bringing innovative new products and services to market.

“While there is still much to be done, individual consumers and small businesses are already seeing the benefits of the ecosystem and functionality we have put in place.”

Read more: The need to share data

“With the third anniversary of its implementation today, open banking is entering a new mature phase of its development,” said Dan Weaver, open banking expert at Equifax UK.

“The initiative’s credentials are now widely established, offering creditors the perfect pandemic tool to assess the most accurate picture of an individual’s finances.”

Some peer-to-peer lending platforms which use – or plan to use – open banking include Lending Works, RateSetter, Leap Lending and Rebuildingsociety.

Investor value at Kuflink increases Quotevine rebrands to QV Systems

Related Posts

CLOSED Out of business shop sign vector illustration

Industry News, News, Top 3, Uncategorized

SME lender warns many companies will not survive

London, UK - Downing street offices, entrance gate

Industry News, News, Top 3

Government responds to P2P fraud query

Neil Faulkner, 4thWay

Features, Top 3

The risk hunter: 4th Way’s Neil Faulkner

Popular posts:

  • MP queries level of fraud in P2P lending
  • Aave launches higher risk, higher return option for…
  • Some firms set to pay more than maximum CBILS interest rate
  • Growth Street to return 100pc of investor funds
  • A year in the life of the 36H Group
  • Investors urged to look at ISA options ahead of…
Back To Top
  • Home
  • Contact
  • About
  • Team
  • Advertising
  • Subscribe
  • Privacy
  • T&Cs
  • Disclaimer

Follow Us on Social Media

© Peer2Peer Finance News 2020
• Additional design by