A new report has claimed that the UK could lose its position as the global leader in open banking unless drastic action is taken.
A report released by Open Banking Excellence – the Global Open Finance Index – is a data-driven exploration of the global state of Open Banking featuring insight from industry experts from 23 countries.
The report found that while the UK was still seen as a global leader, countries like Brazil, Singapore, India and Australia were moving faster and are likely to eclipse the UK in the near future.
Another key finding was that whilst regulatory mandates help nascent ecosystems to establish themselves, it is fundamental that the participants find mutually beneficial arrangements beyond the mandates in order for the ecosystems to thrive.
Helen Child – CEO and founder of Open Banking Excellence – said, “The Open Banking space represents a huge export opportunity for UK firms. UK tech companies have the knowledge and experience to support countries across the world to positively impact their economy, society and environment, whilst at the same time addressing an export-lead market that has been estimated to be worth up to $416 bn* per year by the end of the decade.
“That position is now at risk, due to a stagnant situation at home combined with enormous acceleration in the pace of global competition meaning there’s a real challenge to that leadership position we’ve enjoyed.”
Child added that India’s roll-out has created a group of more than a billion accounts accessible in the same standard.
She also remarked, “There is a data bill sitting in a drawer in Parliament that could and should be brought forward. Secondly, we need to resolve the uncertainty around the future governance arrangements for Open Banking – we have made great progress but we are not done with this yet.
“Thirdly, we need to bake regulatory passporting into future trade agreements. If we can take these three steps, then the door is open for UK tech firms to play a leading role in a period that will see a complete paradigm shift in the way people relate to their money. If we can’t, we’ll be watching from the sidelines.”
Boodil, a Manchester-based provider of an open banking payments and consumer engagement app, recently scored £525k in a pre-seed raise.
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