The UK has emerged as the leading adopter of Open Banking, with it’s clear functionality and widespread mandating of interesting features, such as bulk payments and variable recurring payments, as per new data released by Open Bank firm Yapily. The UK was followed by countries such as Ireland, and Germany in outscoring the opposition in their adoption of Open Banking in the EU Open Banking league table.
The league table – based on data compiled in 2021 by Yapily through its EU-wide Open Banking API infrastructure and monitoring tools – reveals that while parts of the EU are making positive strides to drive Open Banking adoption and are on track to evolve into Open Finance, others are far behind and missing their scoring opportunity.
Each country has been ranked based on levels of supervision and enforcement by the member state, the presence of Open Banking from a technical standard, regulator interpretation, API standards, and bank readiness, and overall product score. Yapily has also shared regulatory insight into where and how each country can positively improve its overall score and ranking.
The growth in adoption of Open Banking usage can be attributed to the innovation in fintech products, increasing awareness about financial products and well-being along with ease of making digital transactions. The Covid19 triggered pandemic has among the youth coupled with the pandemic. In the UK alone, the OBIE reports that over 3 million consumers now use Open Banking-enabled products.
Andria Evripidou, Policy Lead at Yapily, said the league table demonstrates the positive impact Open Banking adoption has across markets and highlights that the ecosystem as a whole is on the right path to offering fairer financial services for everyone.
“While some countries have a bigger presence, over the next few years, we will start to see standardized technical requirements that map customer journeys across all countries and better educate industries on Open Banking, as well as the direction of the ecosystem. Ultimately, all countries are working towards a common goal – to evolve with Open Finance – and at Yapily, we’re excited to watch the rest of Europe dive forward with this innovation.