What is open banking in the UK?
Open banking in the UK is a system that allows consumers and businesses to securely share their bank account data with FCA-regulated third parties via standardised APIs — with explicit consent. Mandated by the Competition and Markets Authority (CMA) in 2016, it powers thousands of apps for budgeting, lending, and payments. Over 11 million UK users were actively using open banking services by 2024, according to Open Banking Ltd.
How did open banking start in the UK?
The CMA’s 2016 open banking mandate required the nine largest UK current account providers — including Barclays, HSBC, Lloyds, NatWest, and Santander — to open up their data via standardised APIs. This was implemented through the Open Banking Implementation Entity (OBIE), which set the technical standards. The UK was one of the first countries in the world to introduce a mandated open banking framework.
What can open banking actually do for consumers?
Open banking enables a wide range of practical services: budgeting apps that aggregate all your accounts in one place, lenders that assess affordability using real transaction data rather than paper payslips, and payment apps that initiate bank transfers directly without a card. It also underpins mortgage income verification, debt advice tools, and savings platforms that move money automatically based on your spending patterns.
Open Banking in Practice: The FCA regulates all open banking providers as either Account Information Service Providers (AISPs) or Payment Initiation Service Providers (PISPs) under the Payment Services Regulations 2017. The Joint Regulatory Oversight Committee (JROC), established in 2022, is overseeing the next phase — including Variable Recurring Payments (VRPs) and broader open finance. Read our full guide to the UK open banking framework on openfuture.world.
FAQ
Which UK banks must support open banking?
The nine largest UK current account providers are legally required to support open banking under the CMA order, including Barclays, HSBC, Lloyds, NatWest, Santander, Nationwide, and three others.
Is open banking the same as open finance?
No — open banking covers bank accounts only; open finance would extend data sharing to pensions, investments, insurance and mortgages, which the JROC is now developing.
Can I use open banking without a smartphone?
Some open banking services are accessible via desktop browser, though most consumer-facing apps are primarily designed for mobile use.