In 5 years Time Open Banking Will Be More Popular Than Cryptocurrency And BNPL

A survey of over 2,000 UK consumers looks at current consumer attitudes and preferences towards open banking. 22% of respondents were in favour of cards, with open banking a close second. It is estimated that 19% of UK consumers will choose it within 5 years.

Open Banking is the practice of allowing third parties (e.g. fintech applications) to access customer financial data from banks via APIs. This means that customers can securely share their financial information with other banks or authorised financial organisations such as payment providers, lenders and insurers.

Although the term Open Banking does not resonate in society, the survey found that when the definition was explained to respondents, 45% of UK respondents confirmed that they had used it.

Looking at UK consumer purchase intentions, 42% of respondents said they were likely to use Open Banking for in-store payments, while 37% said they were likely to use it for online payments. In addition, UK consumers who would primarily use Open Banking for digital purchases said they would use it for online retail purchases (44%), followed by utility payments (36%), airline tickets (30%), hotels (34%) and online subscription services (25%).
This puts open banking ahead of other payment methods such as manual bank transfers (13%), cryptocurrencies (7%) and buy now pay later (14%), according to the survey. 42% of consumers said they would use Open Banking for future purchases if it supported mobile and online payments directly from their bank account.The chart below shows consumers who plan to use Open Banking more often in the next five years, by age.

The chart below shows consumers who plan to use Open Banking more often in the next five years, by age.