- Open banking is growing fast in the UK, with eight million users so far.
- Most users of open banking are highly disciplined financially.
Open banking has steadily gained popularity since 2018, with users embracing it globally. However, adoption rates vary across different regions. According to BanklessTimes.com, U.K. open banking marked a milestone by hitting eight million users by November 2023.
Jonathan Merry, the CEO of BanklessTimes, commented:
People are beginning to appreciate open banking due to its numerous benefits. One interesting strength of open banking is allowing users to access tailored financial services that are relevant to their needs, thus making them in charge of their finances.BanklessTimes CEO, Jonathan Merry
Rapid Adoption Spurs Growth
The open banking adoption rate in the UK shows an increase in awareness and acceptance of the shift in balance in the fiscal space. The number of open banking users grew by almost three million from January 2022 to November 2023.
The global value of open transactions reached $57 billion in 2023, with the UK accounting for 23.9%, at $13.6 billion. There are forecasts that by 2027, the UK value of open transactions will hit $82 billion, an almost 503% increase over the period.
The growth pattern shows how consumer preferences keep evolving as they embrace convenience, flexibility, and enhanced financial management offered by open banking solutions.
With open banking, the financial sector is becoming more innovative and competitive, leading to untold consumer benefits. Through the secure sharing of financial data, this framework empowers innovators to create budgeting applications, enhance lending procedures, and optimize financial advisory platforms for improved performance.
Promoting the Financial Well-being of Consumer
Besides innovations, open banking is critical in empowering users to make wise financial decisions. With access to personal financial data, one can understand one's spending and identify areas for improvement. Such a decision is critical in creating healthy financial habits based on informed opinions.
People who use open banking are always alert when managing their financial expenditures. They rely on money management tools to track their expenditures, calculate their savings, and trace where they spend unnecessarily compared to those who do not. This approach improves budgeting and savings, leading to greater financial independence.
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