Yapily, a UK-based open banking provider, says the technology is soaring across the UK and Europe. The company has posted a document highlighting open banking progress across 18 different European markets.
In its ranking, the UK has the top spot with Germany moving up to 2nd place, followed by Sweden in 3rd. Yapily says it has created a score to rank the different countries, based on local regulatory oversight, enforcement, digital readiness, domestic payments infrastructure, bank integrations and more.
Yapily notes that in the UK there are now 6 million active users and open banking payments are growing 500% YoY, according to the Open Banking Implementation Entity (OBIE). The UK also boasts the highest number of registered third-party providers in Europe.
Germany is said to have the most prescriptive API standards after those adopted by the OBIE.
Close behind is Germany, given its strong regulatory supervision and usage of Berlin Group’s API standards, the most prescriptive after those adopted by the UK’s OBIE.
Sweden has established “regional regulatory regimes, highly developed digital infrastructures, and a collaborative approach to cross-border payments driving open banking maturity in the region.”
Overall, challenges such as collaboration with banks, government institutions, and regulators and a lack of standardization still slow adoption.
Stefano Vaccino, Founder and CEO of Yapily, commented:
“The league table shows that Europe is making significant strides in open banking, but we must continue to press on. We are on the brink of a financial revolution that will help to create better and more accessible financial services for everyone. I’m excited to watch these markets continue to drive innovation and adoption forward as we evolve from open banking towards open finance – and beyond that horizon, open data. ”
Maria Palmieri, Director of Public Policy at Yapily, explained that discrepancies across EU member states could slow the rate of progress.
“Although the European Commission has proposed to implement an open finance framework by 2024, member states that are still behind in open banking could face a number of interoperability challenges, exacerbating the fragmentation that already exists. At the same time, the UK may have retained its position at the top of the leaderboard, but other markets are fast catching up. To stay there, the UK Government must act quickly and decisively to encourage further growth and innovation.”
