Open banking is reshaping the financial landscape in the UK, connecting consumers and businesses to financial tools in new and innovative ways. As the adoption of open banking continues to gain momentum, let’s delve into some key insights and statistics that illustrate this transformative journey.
Open banking momentum in the UK
According to a Mastercard survey of consumers and businesses in 2024*, 70% of UK consumers now connect their financial accounts directly to tools that help them manage various financial tasks – despite only 22% of consumers being familiar with the term “open banking.”
The business sector is also embracing open banking with open arms. 75% of businesses surveyed report using open banking solutions, and an overwhelming 93% believe that the momentum of open banking will continue to grow over the next five years – a clear indicator of the potential long-term impact of open banking on the financial industry.
Top open banking use cases
UK consumers are leveraging open banking for a variety of purposes. According to the research, the top three use cases are:
- Sending or paying money to friends, family, and businesses (72%): Open banking facilitates seamless account-to-account payments in the UK, making it easier than ever to send and receive money.
- Paying bills (66%): Automating bill payments through open banking platforms simplifies financial management and ensures timely payments.
- Banking services (66%): Open banking enhances the user experience by providing efficient and accessible banking solutions.
Top motivators to use open banking
What drives UK consumers to adopt open banking? The Mastercard research reveals that the top motivators include:
- Time savings (57%): Open banking solutions streamline financial processes, saving consumers valuable time.
- Seamless payments (52%): Open banking providers consumers with a convenient and secure payment choice.
- To more easily track transactions between accounts (50%): Open banking allows consumers to effortlessly track transactions across multiple accounts, providing a clear and comprehensive overview of their financial activities.
The future of open banking in the UK
Looking ahead, the future of open banking in the UK appears bright. A significant 61% of UK consumers are very or somewhat likely to use open banking in the future, indicating a growing acceptance and enthusiasm for this innovative financial system.
The research reveals an appetite to use open banking for more sophisticated payment types like recurring payments. 84% of businesses surveyed are likely to use open banking to make or process recurring payments, and 57% of consumers are likely to use open banking for subscriptions or other recurring online purchases.
At Mastercard we believe in offering choice to users, so they always have their preferred option available when it comes to payment and data solutions – and we have both Account Information Service (AIS) and Payment Initiation Service (PIS) open banking licenses to support our customers in building those financial services.
We’re also proud to be an official supplier to the UK Government giving Mastercard the opportunity to provide simple, safe and smart open banking solutions to the UK public sector.
As open banking continues to evolve, it promises to bring even more efficiencies, conveniences, and opportunities to both consumers and businesses alike. The acceleration of open banking in the UK is not just a trend; it is a fundamental shift that is reshaping the financial ecosystem, bringing more people into the digital economy.
Stay tuned as we continue to monitor and report on the progress and impact of open banking in the UK. The journey is just beginning, and the possibilities are endless.
To learn more about our open banking solutions in the UK, click here to visit our website.
*Mastercard Rise of Open Banking Report, forthcoming publication, October 2024.
