More than seven million customers and small businesses are using open banking-enabled products in the UK.
Open banking payments surged to almost 70m last year, up from around 25m in 2021.
The latest open banking impact report from Open Banking Limited (OBL) revealed month on month growth of around 10 per cent as the number of consumers and small businesses using open banking-enabled products reached more than seven million.
It is estimated that around 10-11 per cent of digitally-enabled consumers and small businesses used open banking last March, up from 9-10 per cent the previous year.
“It is encouraging to see a continued and steady increase in the adoption of open banking products and services, particularly by the UK's small firms which are seeing tangible benefits from real-time business insights offered by open banking data,” OBL chair and trustee Marion King said.
There are currently 159 fully regulated firms with live open banking-enabled products, and around 750,000 SMEs using open banking products.
Adoption by businesses is also currently higher than that of consumers, with a 16 per cent penetration rate versus 11 per cent.
According to OBL the gap between the two is largely due to more small businesses using cloud accounting software that uses open banking.
Small businesses are also using open banking for data-driven account information services, which accounts for around 80 per cent of business use.
Consumers, on the other hand, tend to use open banking for money management tools for budgeting or payment initiation services to move money around, topping up wallets or paying credit card bills.
“It is also exciting to see the expansion of services in key areas such as borrowing and financial decision-making, empowering people to make better informed choices about managing their money, which is crucial as we face an increased cost of living,” King added.
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