THE OBIE'S 2020 ROUND UP

2020 WAS A GREAT YEAR FOR OPEN BANKING ADOPTION

Despite the COVID-19 pandemic, we’ve seen continued innovation as FinTechs rose to the challenge, creating solutions for consumers that filled genuine needs. In 2021, we expect that this momentum will continue, with open banking payments coming to the fore in particular. We recently announced that open banking has surpassed the three million user mark, and this number continues to climb. This milestone reflects the significant progress we have made in developing a world-leading, thriving ecosystem of over 300 regulated providers, who together are bringing innovative new products and services to market.

Imran Gulamhuseinwala OBE, Implementation Trustee, OBIE

INSIGHTS

By the end of 2020 there were 294 regulated providers enrolled in the OBIE Directory - up from 204 at the close of 2019. This growth points to the continued value firms are leveraging from direct participation in open banking.

In 2019, 1.27bn API calls were reported to the OBIE by participating banks. In the 12 months since then, 5.83bn API calls have been recorded, demonstrating the vibrancy of the ecosystem and growing usage.

Almost 4 million more open banking payments were made in 2020 when compared to 2019 - due to a combination of factors including increased digital activity due to COVID-19, as well as high-profile activities such as Captain Tom's herculean fund-raising efforts.

ECOSYSTEM NUMBERS (DECEMBER 2020)

GOALS FOR 2021

  • Communicate the OBIE’s vision for the future governance of open banking and Open Finance
  • Demonstrate the successes and delivery of open banking
  • Drive adoption of open banking technologies among consumers and businesses
  • 20th January: Open banking adoption surpasses one million customer mark

  • Nesta's Open Up 2020 Challenge publishes research and guidance on 'Keeping your 2020 Money Resolutions on Track'

JANUARY

FEBRUARY

  • Fronted, 11:FS, Coconut and Credit Kudos collaborated with others to set up COVID Credit to allow sole traders to self-certify lost income

  • True Layer opened their platform to assist individuals or businesses during the pandemic

  • Barclays app allowed customers to make payments from accounts with other banks

  • Open banking payments sped up the brokerage market with True Layer and Stake

  • Lloyds Banking Group partnered with Google to provide open banking services

  • Elavon and Nuapay collaborated to provide open banking in Europe
  • Starling introduced a Coronavirus Support Scheme to help struggling customers

  • Tully launched single online payments relief resource, the Covid-19 Relief and Wellbeing Network for people impacted by Covid-19

  • Debut of smart money app Snoop to help consumers and households better manage their finances during the Coronavirus lockdown period

  • A new app launched by iDelta aimed to give retail banks increased visibility of how well their customers’ needs are being met

MARCH

APRIL

  • 1st April 2020: The OBIE launched #PoweroftheNetwork campaign to highlight the open banking ecosystem's repsonse o the economic impact of COVID-19

  • Nesta's Open Up 2020 Challenge finalist CreditSpring started using open banking to provide customers will the tools to prove and access forbearance measures
  • Ecospend made its open banking-enabled payment services available free of charge for payments to the NHS by individuals and charities
  • OKEO began to develop affordability and credit risk models using current “crisis data” to lend money to financially excluded young adults at low rates during the pandemic
  • Captain Tom Moore’s NHS fundraising was aided by growth of open banking payments, with American Express helping to facilitate donations made through the JustGiving platform
  • Capital on Tap and TrueLayer partnered to speed up access to loans for small businesses
  • TrueLayer launched a free open banking charity donation platform, Donate Direct
  • ClearScore developed a credit for key workers initiative
  • Click2Check launched Credit Assess to help mortgage advisers pre-qualify clients
  • Tink release new research that showed a rise in open banking investments in Europe, featuring a Q&A with Open Banking Implementation Trustee Imran Gulamhuseinwala OBE
  • Nesta's Open Up 2020 Challenge runs a nation-wide press campaign to promote open banking-enabled apps that make managing finances easier

MAY

JUNE

  • 9th June 2020: The OBIE's open banking App Store was launched

  • The Crown Commercial Service, part of the UK’s Cabinet Office, added a number of financial API providers (Truelayer, Nuapay, Worldpay, Global Payments, Token, Reflow, American Express and NatWest) to its Payment Acceptance Framework
  • Worldpay from FIS launched Open Banking Hub
  • UK Finance published the ‘Open Banking Futures’ report outlining recommendations for a proposed model to support the future provision of open banking services following the completion of the Roadmap. The OBIE provided input to both Accenture, who developed the report, and UK Finance.
  • Confirmation of Payee, a new way of giving customers (both personal and business) greater assurance that they are sending payments to the intended recipient, came into force, providing another layer of protection in the fight against fraud and scams
  • QuickBooks backed small business recovery with the launch of digital tools
  • Zopa implemented a new digital affordability product
  • Australia took the first steps towards open banking
  • Revolut launched open banking for one million French customers
  • Widespread Conformation of Payee confirmed to be in place
  • Imran Gulamhuseinwala shares his thoughts on Britain’s open banking future on 'The City View' podcast

JULY

AUGUST

  • 13th August 2020: The OBIE responded to the EBA on the subject of eIDAS certificates post-Brexit

  • Intuit QuickBooks backed small business recovery
  • HMRC issued a £3M open banking tender

  • Open banking payments surged during lockdown according to TrueLayer
  • A survey from Nesta's Open Up 2020 Challenge found that one in five people believe they will be unable to recover financially this year from the impact of COVID-19
  • The OBIE published Open Data Service Quality Indicators

  • 28th September 2020 – Number of users of open banking-enabled products exceeded 2 million

  • Tesco Bank launched Pay by Bank in partnership with Mastercard
  • FCA announces planned consultation on eIDAS certificates for open banking services
  • Bank of England Chief Economist Andy Haldane expounded open banking’s merits for businesses
  • The OBIE hosted the SME Forum focusing on COVID-19

SEPTEMBER

OCTOBER

  • 14th October 2020: Nesta announces the winning finalist companies from the Open Up 2020 Challenge
  • The Times published an article shining a light on how Captain Tom 'started an open banking revolution'
  • Policy Exchange published paper on digital identity
  • AccountScore and Click2Check partnered to bring open banking to mortgage advisors
  • 9th November 2020: The OBIE launched Variable Recurring Payments and Sweeping Consultation

  • Experian brought open banking-powered credit score tool to the UK
  • Snoop doubled £5m target in crowdfunding campaign
  • The OBIE responded to the FCA’s report on their eIDAS Consultation - then coordinated the ecosystem as it worked to adopt the new proposals ahead of the 31st December deadline

NOVEMBER

DECEMBER

  • 7th December 2020: The OBIE publishes its Small Business Financial Landscape research, showing how SMEs are using open banking to remain resilient

  • HMRC explored open banking potential to deliver public services
  • Nuapay’s pre-paid card tie-up gave a festive push to open banking payments
  • Admiral leveraged open banking to restart lending
  • Curve joined forces with Plaid to help people manage their money

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