Open Banking in The United Kingdom

Open banking in UK

Facts and figures

UK boasts more than 300 banks and 45 building societies. The 9 largest banks in the UK (referred to as the CMA9) are AIB Group, Bank of Ireland, Barclays Bank, HSBC Group (also First Direct, M&S), Lloyds Banking Group (also Bank of Scotland, Halifax), Nationwide Building Society, NatWest Group (also NatWest, Royal Bank of Scotland, Ulster Bank), Northern Bank Limited and and Santander UK. Online banking adoption rate in UK is growing year on year, reaching 76% of UK population in 2020 (Statista).
 

Open banking

Open Banking is live in UK with more than 2.5 million users. The UK Competition and Markets Authority (CMA) released a decision in August 2016 requiring the nine largest UK banks – HSBC, Barclays, RBS, Santander, Bank of Ireland, Allied Irish Bank, Danske Bank, Lloyds, and Nationwide – to provide authorised startups direct access to their data down to account transactions. 

Open Banking aims to increase competition and growth in the financial services industry. It opens the door to innovative goods and services that may benefit consumers and small and medium-sized companies. It can also help consumers gain a better understanding of their finances and discover new ways to make the most of their money.

The directive took effect on January 13, 2018, and it is based on principles and systems developed by Open Banking Limited, a non-profit organization established specifically for the purpose. The Competition and Markets Authority, on the other hand, is in charge of enforcing the law. The Financial Conduct Authority (FCA) or the Information Commissioner's Office was responsible for customer protection (under the PSD2 directive for account information and payment initiation services) 

The CMA directive only affects the nine major banks, and it operates in tandem with the wider PSD2 regulations that affect all payment account providers.

There are 202 FCA-regulated providers enrolled in Open Banking as of January 2020. They offer wealth management applications, as well as consumer lending companies that use Open Banking to gain access to account information for affordability tests and verification.

Integration with APIs

To use access and use the open banking APIs in UK, you will need to acquire an account information service provider license, issued by the Financial Conduct Authority. In addition to that, you will require a relevant certificate (QTSPs or eIDAS), compliant with Open Banking Initiate requirements.

Alternatively, you can use Nordigen's free Account Information solution - one API that connects to all major banks in UK. 


Banks

Here is a list of major banks providing Open Banking in The United Kingdom

Providers

Here is a list of major open banking platforms in The United Kingdom

Tink

Tink was founded in 2012, and has built one of Europe’s biggest screen-scraping / open banking platforms – they claim to have broad connectivity and services that create value out of the financial data. Tink offers their platform to banks, fintechs, and startups.


Nordigen

Nordigen is an authorised Account Information Service Provider. We provide free access to bank data and premium data insights, using regulated PSD2 connections.


Yapily

Yapily, one of a number of fintech startups that offer an opening banking API to let enterprises, such as financial service providers and merchants, connect to banks. Founded in mid 2017 by Stefano Vaccino, Yapily’s open banking platform makes it easier for various service providers to connect to banks. Specifically, it provides a way to retrieve financial data and initiate payments via a “single secure API” that in turn connects to each supported bank’s open API.


Plaid

Plaid is a financial services company based in San Francisco, California. The company builds a data transfer network that powers fintech and digital finance products. Plaid's product, a technology platform, enables applications to connect with users’ bank accounts.


Truelayer

TrueLayer is a London-based start-up that helps fintech companies verify accounts and connect their apps to bank data. TrueLayer was founded by Francesco Simoneschi and the company has offices in 5 cities across the world.


Account Score

AccountScore, an Equifax company, is an analytics business based in London but with people in the USA and in India, which provides actionable insights and analytics on bank transaction data for our clients - typically banks and financial services companies who want to learn more about their customers, prospects and applicants.


Credit Kudos

Credit Kudos is a challenger Credit Reference Agency and authorised Open Banking provider that uses financial behaviour to measure creditworthiness.