Open banking matures across Europe with UK heading the pack, Yapily claims

Open banking maturity is growing across Europe, with the UK leading the charge for the second consecutive year, research from Yapily claims.

The finding comes from Yapily’s annual European open banking league table, which has ranked 18 European countries on a ten-point scale according to the maturity of open banking in the market.

This league table is based on a number of criteria, including local regulatory oversight and enforcement, digital readiness of the population, domestic payments infrastructure, bank integrations, presence of third party providers (TPPs), and API performance and standardisation.

The UK took the top spot for the second year in a row, with Germany rising to second place and Sweden in third.

Yapily stated that with significant political support and a pro-innovation regulatory environment, open banking adoption has “continued to skyrocket in the UK.” It stated that there are now six million active users and open banking payments are growing at a rate of 500% YoY, according to stats from the Open Banking Implementation Entity.

The UK also has the highest number of registered third-party providers in Europe, helping support the development of the ecosystem.

Germany is close behind due to the strong regulatory supervision and usage of Berlin Group’s API standards. The country also boasts high payment conversion rates, maturity of local bank API standards, and rich coverage across all payment types scoring highly.

In third place was Sweden with its regional regulatory regimes, highly developed digital infrastructures, and a collaborative approach to cross-border payments driving open banking maturity in the region.

Yapily founder and CEO Stefano Vaccino said, “The league table shows that Europe is making significant strides in open banking, but we must continue to press on. We are on the brink of a financial revolution that will help to create better and more accessible financial services for everyone.

“I’m excited to watch these markets continue to drive innovation and adoption forward as we evolve from open banking towards open finance – and beyond that horizon, open data.”

To foster growth, Yapily said there needs to be improved collaboration between banks, governments, regulators, and TPPs at the local and EU level.

A recent report from Curity also highlighted a promising picture for open banking. It found that 43% of large financial institutions have adopted open banking. The main driver of adoption is to increase their competitiveness, followed by delivering new products and services.

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