# Four years of Open Banking: 2022 may be the best year yet  Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-02-08 Category: BANKING Category URL: https://financedigest.com/category/banking Meta Title: The Future of Open Banking: Trends and Insights for 2022 Meta Description: Discover how Open Banking is revolutionising the financial services industry, with over 4.5 million regular users and vast untapped potential for businesses URL: https://financedigest.com/four-years-of-open-banking-2022-may-be-the-best-year-yethtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/istock-682618472-1-1736816254622-compressed.jpg) _By **Martin Wilson,** CEO of Digital Identity Net_ January marked four years since the introduction of Open Banking. Although industry take up was initially slow, 2021 proved to be a catalyst for the initiative. In the past year, there has been a [60 percent increase](https://www.openbanking.org.uk/news/uk-open-banking-marks-fourth-year-milestone-with-over-4-million-users/) in new Open Banking customers, totalling 3.9m consumer customers and 600,000 small business customers. Furthermore, with 1 million regular and active users joining [Open Banking](https://www.financedigest.com/open-data-represents-the-biggest-challenge-to-banks-in-a-generation.html "Open data represents the biggest challenge to banks in a generation") every 6 months, it now has over 4.5 million regular users. [Despite the growing adoption of Open Banking](https://www.financedigest.com/seven-out-of-ten-uk-adults-aged-25-44-never-seek-advice-on-dealing-with-debts-despite-depending-on-the-bank-of-mum-and-dad.html "Seven out of ten UK adults aged 25-44 never seek advice on dealing with debts despite depending on the bank of mum and dad") by both businesses and consumers alike, it has not been without its critics. While it’s certainly true that progress was sluggish initially, we’re beginning to see firms and consumers unlock the benefits and, given the encouraging signs of the last year, Open [Banking is likely to become](https://www.financedigest.com/banks-need-to-become-a-lifestyle-brand.html "Banks need to become a lifestyle brand") positively disruptive in many different ways. **From transition and implementation to effective use** The [momentum built in 2021 is expected to continue](https://www.financedigest.com/workday-continues-momentum-across-europe.html "Workday continues momentum across Europe") into 2022. Open [Banking is now poised to take centre stage in the financial services industry](https://www.financedigest.com/the-survival-of-the-banking-industry.html "THE SURVIVAL OF THE BANKING INDUSTRY"), unlocking a vastly untapped potential that has wide-ranging benefits not just in finance but across society. Banks are now embracing Open [Banking and have transformed their organisational structures to meet the mandated requirements established by the Competition & Markets](https://www.financedigest.com/in-a-rising-market-are-banking-outsourcers-pulling-their-weight.html "In a rising market, are banking outsourcers pulling their weight?") Authority, resulting in the generation of many new opportunities. Banks, as well as other businesses, are beginning to explore more ambitious and creative solutions that [Open Banking](https://www.financedigest.com/how-will-open-banking-impact-the-customer-experience.html "How will Open Banking impact the customer experience?") fosters and facilitates. It is now evolving and being used in ways not previously considered, such as Amazon revolutionising card [payments and the FCA reformulating the process](https://www.financedigest.com/are-your-payment-processes-in-cheque-for-the-new-legislation.html "ARE YOUR PAYMENT PROCESSES IN CHEQUE FOR THE NEW LEGISLATION?") of reauthentication. That being said, it is not simply plain sailing from here. As the implementation phase is now ending, it will take concerted effort from all parties to drive into the [next stage and see](https://www.financedigest.com/britains-next-sees-lower-profit-in-2023-as-consumer-outlook-darkens.html "Britain’s Next sees lower profit in 2023 as consumer outlook darkens") Open Banking utilised fully. Collaboration will be crucial. **The public [service benefits of Open Banking:](https://www.financedigest.com/20-billion-in-bank-service-fees-are-you-overpaying.html " Billion in Bank Service Fees: Are You Overpaying?") Digital Identity** With banks and business starting to look beyond simple [account](https://www.financedigest.com/are-banks-ready-for-the-new-accountability-regime-in-2016.html "ARE BANKS READY FOR THE NEW ACCOUNTABILITY REGIME IN 2016?") aggregation and innovative payment services from Open Banking, we are seeing the emergence of more creative use cases that can bring significant improvement and benefit to paying consumers and broader society alike. This has already been seen in the private sector and this wider potential of Open [Banking](https://www.financedigest.com/big-ecb-hike-adds-fuel-to-the-banking-sector-fire.html "Big ECB hike adds fuel to the banking sector fire") has not been lost on the public sector either. For example, HMRC has taken [over £1billion in tax](https://www.gov.uk/government/publications/update-governance-of-open-banking/update-on-open-banking) through Open Banking. A digital identity system is one prospective public service for UK citizens that could be enabled by [Open Banking](https://www.financedigest.com/barclays-private-bank-opens-new-office-in-verbier-switzerland-for-2022-23-ski-season.html "Barclays Private Bank opens new office in Verbier, Switzerland for 2022/23 Ski Season"). Similar systems are already in place in Belgium, Norway and Sweden. These systems have seen [strong adoption and usage](https://www.iif.com/Portals/0/Files/content/Innovation/09_13_2021_gain_digital_trust.pdf): - BankID Sweden achieves 840 interactions per [user per year](https://www.financedigest.com/an-apple-a-year-half-of-iphone-users-will-upgrade-to-the-iphone-7.html "AN APPLE A YEAR: HALF OF IPHONE USERS WILL UPGRADE TO THE IPHONE 7") – and is used by over 98% of those aged 21-67 - BankID Norway has 99% [market penetration within the adult population and 215 transactions per user per year](https://www.financedigest.com/mclaren-to-enter-india-market-later-this-year.html "McLaren to enter India market later this year") - itsme® in Belgium has onboarded over 60% of the population Of all the exciting and innovative use cases that Open Banking potentially provides, a frictionless digital identity service for consumers to utilise their existing [bank account](https://www.financedigest.com/new-legislation-makes-switching-bank-accounts-simples.html "New legislation makes switching bank accounts “simples”") data simply and safely to prove that they are who they say they when transacting online, is arguably the biggest and most impactful. [Digital identity has the infrastructure in place](https://www.financedigest.com/the-evolution-of-loyalty-and-its-place-in-the-digital-age.html "THE EVOLUTION OF LOYALTY AND ITS PLACE IN THE DIGITAL AGE") and a tangible social need, and it can be the driver of wider consumer adoption and acceptance of Open Banking services in 2022. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---