New analysis reveals £43bn annual Open Banking opportunity for the UK economy

Source: WA Communications / Open Banking Limited

Open Banking could unlock significant economic benefit for the UK as adoption expands, according to new independent economic analysis commissioned by Open Banking Limited (OBL) and with analysis completed by EY to help OBL quantify, for the first time, the potential impact of Open Banking in terms of the value delivered for consumers, businesses and the wider economy.  

This analysis finds that Open Banking has already delivered an estimated £8.3 billion in cumulative benefit to date, based on current levels of adoption. Looking ahead, annual economic benefits could reach £7.4 billion after five years as adoption continues to scale. At full maturity and adoption, the long-term annual opportunity across the UK economy could be significantly larger, reaching up to £43 billion per year.

The findings demonstrate the growing role of Open Banking in driving economic growth, highlighting its importance as part of the UK’s financial infrastructure and the significant headroom for future growth. The analysis shows that Open Banking is already delivering measurable economic value, with £8.3 billion in benefit realised to date based on current adoption levels.

The modelling identifies how cumulative adoption across payments, savings, lending and cloud accounting could generate economy‑wide benefits as millions of everyday financial decisions become cheaper, faster and more efficient over time. Open Banking is the consent-based data sharing of current account data with trusted third parties, and this research highlights a number of benefits that Open Banking facilitates, such as:

• Improved financial management for consumers – enabling people to save more and reduce unnecessary living costs.
• Productivity gains for businesses through automation – lower transaction costs and reduced administrative burden.
• Increased investment and growth – better use of data and payments improves access to finance and directs capital towards more productive uses.

For SMEs, reducing the cost of administration can release more time for SMEs to focus on growth, not paperwork – driving the development of new, innovative products and services generating an estimated annual GDP uplift of £2.3 billion within the next five years.

For consumers, Open Banking-powered tools could help them manage and save money more effectively, and access fairer finance, supporting increased economic activity. This is estimated to deliver an annual boost to UK GDP of £2.5 billion within the next five years.

Beyond direct consumer and business benefits, the analysis highlights that Open Banking can act as a material driver of economic growth, supporting higher productivity, increased investment, and more efficient allocation of capital.

Henk Van Hulle, chief executive officer of Open Banking Limited, said:  “Open Banking has already played a vital role in society with over 17.5 million user connections, and these findings show that there is an even greater opportunity ahead now that Open Banking has reached a key point of maturity.

“By helping consumers manage their money better and enabling businesses to operate more efficiently, Open Banking is already contributing meaningfully to economic growth, a key component of the Government’s wider growth mission.

“As the UK looks to strengthen productivity, competitiveness and innovation across financial services, this analysis underlines the important role Open Banking can play in supporting those ambitions, while laying the foundations for the next phase of development.”

Thomas Bull, head of fintech growth at EY, said:  “Open Banking is already delivering real and substantial value across the UK, with significant further growth potential as adoption continues to scale. It is changing how people and businesses manage everyday financial activity from making and receiving payments, to managing cash flow, reducing administrative burden and making more informed decisions in real time. The report shows that these improvements to routine, everyday interactions are already unlocking meaningful benefits for consumers and businesses alike, and that their impact grows as adoption deepens.

“Looking ahead, continued collaboration between industry, regulators and government will be critical to building on this momentum, scaling the existing ecosystem and supporting the transition towards Open Finance, enabling broader, fairer access to financial services across the UK.”

Further reading: Open Banking Limited strengthens board with appointment of John Glen MP