A fully “unlocked” open banking regime could add £43bn a year to the British economy, according to new analysis from EY.
Commissioned by Open Banking Limited, the analysis found that so far, the introduction of open banking into UK finance has already delivered £8.3bn in cumulative benefits.
Looking ahead, the report suggests that annual economic benefits of open banking could reach £7.4bn after five years, while a fully mature and adopted regime supported by the public and private sector could jump to £43bn.
Open banking is based on the consensual sharing of current account data with regulated third parties and has been found to improve the ability for consumers to manage finances, increase the efficiency and lower the cost of moving funds and support increased investment.
“Open banking is already delivering real and substantial value across the UK, with significant further growth potential as adoption continues to scale,” said Thomas Bull, head of fintech growth at EY.
“The report shows that these improvements to routine, everyday interactions are already unlocking meaningful benefits for consumers and businesses alike, and that their impact grows as adoption deepens.
“Looking ahead, continued collaboration between industry, regulators and government will be critical to building on this momentum, scaling the existing ecosystem and supporting the transition towards open finance, enabling broader, fairer access to financial services across the UK.”
Henk Van Hulle, chief executive of Open Banking Limited added: “By helping consumers manage their money better and enabling businesses to operate more efficiently, open banking is already contributing meaningfully to economic growth, a key component of the government’s wider growth mission.
“As the UK looks to strengthen productivity, competitiveness and innovation across financial services, this analysis underlines the important role open banking can play in supporting those ambitions, while laying the foundations for the next phase of development.”
