Open banking’s user numbers in the U.K. have doubled to two million in just over six months.
The latest figures from the Open Banking Implementation Entity, the body set up by the Competition and Markets Authority to deliver open banking in the U.K., show a steady increase at a rate of around 160,000 users per month, according to a report in FinExtra.
The increase is due to consumers gaining control over their own data and better managing their finances during the COVID-19 pandemic.
Research sponsored by Nesta Challenges’ Open Up 2020 Challenge, indicates an increase in money management app usage during the pandemic. According to a survey of 2000 UK adults in early July 2020, one in five started they were using online banking apps during lockdown and 54% use them regularly now.
“Open Banking used to be the best kept secret in financial services. With 2 million 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,” Imran Gulamhuseinwala, OBIE, said in the report. “Open banking enabled products are rebalancing the market in favor of consumers and small businesses. Users are now able to engage more with their finances and getting access to better products.”