Open banking has the potential to revolutionise financial services, transforming and opening up the UK banking industry by giving people control over their financial data in order to access innovative products tailored to them. Since it launched in 2018, open banking technology has opened the door for new fintech innovators to create cutting-edge tools for everything from budgeting, debt management, comparing/switching banks, automating savings, and more.
The UK is the acknowledged world leader in open banking, with many other countries – including Australia, Canada and the rest of the EU – now implementing similar initiatives.
This wave of innovation holds particular promise for people partially or entirely excluded from access to fair financial services, including:
More generally, it is estimated that UK consumers stand to gain £12bn from open banking-enabled tools.
(Source: Consumer Priorities For Open Banking, June 2019)