Open Banking has struggled to take off in the UK, but could this change?

Share this post

Despite growing numbers, research has shown that Open Banking has so far struggled to take off fully in the UK. This week on the Moorwand website we are asking the question: How can the industry change so it can succeed?

It’s been nearly three years since the Second Payment Services Directive (PSD2) came into force in the UK. Back in September, the country hit two million open banking users among the big nine high street banks, increasing from one million in January. Of the 66.65 million people living in the UK, at least 3% now use open banking-enabled services, which is certainly an improvement. However, when speaking to Bobsguide, Luc Gueriane, Moorwand’s chief commercial officer, said that “It’s way behind target still […] the usage is so incredibly low, that even though we’ve got a huge regulatory burden we’ve got hardly any benefits.”

Luc Gueriane isn’t the only one to admit its slow uptake. In June, Maha El Dimachki, then-head of UK payments for the Financial Conduct Authority (FCA), told PYMNTS: “The development of open banking has continued […] during the pandemic, although the speed of development may have slowed a little.”

Despite open banking adoption lagging behind, COVID-19 has driven digital banking adoption in the UK to its tipping point. The BAI found half of Britons are using digital financial products more since the pandemic, and EY says since national lockdowns Europe has seen a 72% rise in the use of fintech apps. So consumers are getting more comfortable with digital banking, as well as third party fintech apps, but it seems there is still hesitancy around connecting the two experiences, particularly in the UK.

In South Korea, at least 20 million consumers (70% of the population) are using open banking services within just a year of launch. That’s more than 23 times the adoption rate in the UK.

Why is that?

Read the full article here

More To Explore

Membership

Are you a member of The Payments Association?

Member benefits include free tickets, discounts to more tickets, elevated brand visibility and more. Sign in to book tickets and find out more.

Welcome

Log in to access complimentary passes or discounts and access exclusive content as part of your membership. An auto-login link will be sent directly to your email.

Having trouble signing?

We use an auto-login link to ensure optimum security for your members hub. Simply enter your professional work e-mail address into the input area and you’ll receive a link to directly access your account.

First things first

Have you set up your Member account yet? If not, click here to do so.

Still not receiving your auto-login link?

Instead of using passwords, we e-mail you a link to log in to the site. This allows us to automatically verify you and apply member benefits based on your e-mail domain name.

Please click the button below which relates to the issue you’re having.

I didn't receive an e-mail

Tip: Check your spam

Sometimes our e-mails end up in spam. Make sure to check your spam folder for e-mails from The Payments Association

Tip: Check “other” tabs

Most modern e-mail clients now separate e-mails into different tabs. For example, Outlook has an “Other” tab, and Gmail has tabs for different types of e-mails, such as promotional.

Tip: Click the link within 60 minutes

For security reasons the link will expire after 60 minutes. Try submitting the login form again and wait a few seconds for the e-mail to arrive.

Tip: Only click once

The link will only work one time – once it’s been clicked, the link won’t log you in again. Instead, you’ll need to go back to the login screen and generate a new link.

Tip: Delete old login e-mails

Make sure you’re clicking the link on the most recent e-mail that’s been sent to you. We recommend deleting the e-mail once you’ve clicked the link.

Tip: Check your security policies

Some security systems will automatically click on links in e-mails to check for phishing, malware, viruses and other malicious threats. If these have been clicked, it won’t work when you try to click on the link.

Need to change your e-mail address?

For security reasons, e-mail address changes can only be complete by your Member Engagement Manager. Please contact the team directly for further help.

Still got a question?