UK Open Banking Reaches One in Three Adults as Usage Hits Record

Open banking in the UK has reached a major milestone, with usage surging to record levels. According to new data from Open Banking Limited (OBL), more than 15 million individuals and businesses now use open banking services, highlighting the growing integration of digital banking solutions into everyday financial life. This trend has important implications for consumers, businesses, and banks across the country.

What is Open Banking?

Open banking is a system that allows consumers and businesses to securely share their financial data with third-party providers, enabling services such as streamlined payments, account aggregation, and personalized financial advice. By connecting checking accounts, savings deposits, loans, and credit facilities to authorised providers, users can manage their finances more efficiently and make informed decisions. Variable recurring payments (VRPs), a newer feature, allow automated payments directly from customer accounts while maintaining security and control.

The system not only promotes convenience for users but also encourages competition among financial institutions, as banks must enhance digital offerings and service quality to retain customers. By leveraging open banking, lenders can provide tailored credit, mortgage, and loan products based on better insight into customer financial behavior.

Usage Trends and Adoption

OBL’s research shows that nearly one in three UK adults now uses open banking services, representing a 34 percent increase in total users compared to the previous year. In July 2025 alone, open banking services were accessed over 2.04 billion times, a 3.5 percent increase from June.

Payment activity continues to drive adoption, with 29.89 million transactions recorded in July, up 8.7 percent from the prior month. Variable recurring payments are gaining traction, accounting for over 4 percent of total transactions with 4.26 million VRP transactions processed in July. These developments indicate that consumers are increasingly comfortable with digital banking solutions and trust them for everyday financial management.

Implications for Banks and Customers

For customers, open banking provides greater control over checking accounts, mortgages, loans, and deposits, enabling them to optimise spending, compare financial products, and access personalized advice. Banks, on the other hand, are compelled to innovate in digital banking, invest in secure platforms, and offer seamless integration with third-party services to remain competitive.

The technology also allows lenders to assess credit risk more accurately, tailor interest rates, and introduce innovative loan and deposit products. By harnessing data-driven insights, banks can improve efficiency, reduce operational costs, and enhance customer satisfaction.

Closing Insights

The record adoption of open banking in the UK signals a shift towards a more connected and customer-centric financial ecosystem. For investors and consumers alike, the trend offers opportunities to leverage digital banking for smarter financial decisions. Looking forward, continued innovation in variable recurring payments, digital lending, and account aggregation will further strengthen the role of open banking. Banks that embrace these technologies are likely to see increased customer loyalty, more efficient credit and loan management, and a competitive edge in a rapidly evolving financial landscape.

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