EXECUTIVE SUMMARY

The Consumer Evaluation Framework (CEF) is a tool designed, over time, to build analysis of whether open banking is delivering intended end user outcomes. This is the first CEF Report providing an initial view of key metrics that should be regarded as a foundation which will develop over time. This is a complex piece of analysis, much of which is currently indicative and based on assumptions that we have clearly set out in our explanation of the methodology used. The outputs should be treated as indicative, rather than precise measures. We expect that the accuracy of the measures will improve in further iterations as we develop new data sets, commission additional research and with the continued growth of the ecosystem. An underpinning assumption of the CEF is that a critical mass of customers using the envisaged services, is a prerequisite to drawing any reliable conclusions as to ultimate customer outcomes. We recognise that this will be a multi-year exercise. The CEF will continue to evolve and will be a framework which the OBIE and its successors can use to assess progress towards delivery of the intended outcomes of the CMA Order. This report is based on the agreed Phase 1 scope as set out in Figure 1.

Figure 1: Theory of change, components of analysis and phase 1 contents

This Phase 1 report gives an analysis of 3 core elements of the Theory of Change and provides analysis on the extent to which the open banking ecosystem is developing in a way which is consistent with the intentions of the CMA Order. Key findings include:

Availability (See Section 4): The ecosystem has grown strongly and there are now 109 live to market propositions. These are clustered in three outcome areas (Improved Financial Decision Making, Better Borrowing and Expanded Payments). There are propositions targeting both conusmers and small businesses (37 vs 25) with a further 47 targeting both.

Adoption (See Section 5): 450% growth in APIs from 2019 to 2020 suggests strong growth in adoption. The CEF estimates that 60 – 70% of this volume relates to propositions supporting Improved Financial Decision Making We can tentatively estimate that 5-6% of digitally active end users are now using open banking, with strong growth through 2020

Outcomes (See Section 6) End user ratings suggest the experience of using these propositions is positive, with average ratings of open banking-enabled services at 4.5 out of 5.0