Open Banking rises to £7.2 million

Consumers are set to save in areas such as mortgage approvals, credit scoring, financial management and reduced overdraft fees as the “Open Banking” market expands to £7.2 billion over next five years.

An independent report into regulation aimed at opening up the UK’S current account market could lead to an influx of new players and services for 32.7 million consumers and 4.8m businesses by 2022.

New rules came into effect in January 2018 requiring UK banks to share current account holder data through an integration technology called application programming interfaces.

Jonathan Turner, financial services payments leader at PWC, said: “We are seeing companies starting to treat Open Banking regulation as a critical topic that cannot be ignored due to the size of the opportunity, but also because of the potential influx of competitors and the potential overhaul it could deal the financial services landscape.

“By providing access to this data to third parties, Open Banking goes some way to levelling the playing field.”