Numbers stack up for UK open banking three years on
Three years have passed since open banking regulations came into force and momentum is gathering
Share this item with your network: By Published: 14 Jan 2021 13:54
Nearly six billion calls were made from fintech application programming interfaces (APIs) to bank servers in the UK in 2020 and more than four million open banking payments were completed.
Figures from the UK’s Open Banking Implementation Entity (OBIE) said more than four million open banking payments were made in 2020, compared with 320,000 in 2018, and nearly six billion API calls were made to servers in the UK, compared with just 66.8 million in 2018.
HMRC explores the potential of open banking to ‘streamline’ tax
By Ian Hall on 16/12/2020
HMRC: the department wants to encourage the digitalisation of tax administration | Credit: Global Government Fintech
The UK’s HM Revenue & Customs (HMRC) is investigating how it can use small businesses’ and self-employed individuals’ real-time financial transaction data, obtained with their permission through open banking, to calculate and collect tax.
Open banking enables account holders to share financial data with third parties using APIs. The UK is widely seen as a leading nation when it comes to rolling out open banking, with more than two million people using such products.
The number of people using Open Banking in the UK exploded this year, rising by 100% to two million customers. But many of those people may not realise they are using it.
Open Banking is the foundation on which apps function when they access personal financial information in order to offer a service. That includes bank apps that allow accounts held with numerous providers to be viewed in one place or those that alert consumers to better deals based on their current spending.
Many consumers (individuals and business owners), who might baulk at the prospect of consenting to a third party having access to their personal financial data, are happy to sign up when they recognise time or money saving benefits.
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