Coronavirus drives rapid adoption of open banking

The Open Banking Implementation Entity (OBIE) has revealed that open banking users have more than doubled since 2020.

The coronavirus has forced many consumers and businesses to the online world and this is impacting the adoption of open banking. OBIE claims there are now over two million customers of open banking-enabled products.

There has been a steady increase rate of around 160,000 users per month, but there was a plateau in April and May.

One of the product types seeing a lot more traffic is money management app, of which 45% were 25-34 year olds.

A survey of 2,000 UL adults in July 2020 found just one in five had started using online banking apps – this figure is now 54%.

Imran Gulamhuseinwala OBE, trustee of the OBIE said, “Open Banking used to be the best-kept secret in financial services. With 2m active monthly users and growing strongly that is clearly no longer the case. We can now see that people want to exercise their rights over their data and will do so, as long as you make it simple and secure.

“Open banking enabled products are rebalancing the market in favour of consumers and small businesses. Users are now able to engage more with their finances and getting access to better products.”

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