The report offers new analysis on the size of the UK Open Banking ecosystem, finding that the ecosystem is worth more than £4.1 billion in the UK, with Open Banking firms raising over £886 million in 2022 alone. Regulation has propelled the sector forward, with 92% of all money raised by the Open Banking firms in the sample coming since 2018 when regulation went live for the first time. More than just money raised, the sector has created over 4,800 skilled jobs.
Open Banking has clearly been a success in the UK so far, with over seven million users and 50% of SMEs having used open banking services. Yet despite the size of the sector, we are at a critical juncture, and our historic lead is imperilled. Coadec is calling for the Government to proactively lead the way whilst pushing the FCA to take actions available to it under current regulations.
In the report, we lay out our vision for an Open Banking ecosystem grounded in the continuity of the current regime, but with several enhancements to unlock Open Banking payments and to enforce greater scrutiny on big firms. The Open Banking Implementation Entity (OBIE) must continue past April 2023 in order to safeguard the integrity of the Open Banking sector. However, Coadec is clear that “Open Finance” requires political action, starting with a Treasury consultation on an Open Finance scheme, in anticipation of Smart Data becoming law over the coming months.