UK Open Banking
The world's first mandated open banking ecosystem, now serving over 7 million users and processing billions of API calls monthly.
Overview
UK Open Banking began with the Competition and Markets Authority (CMA) Order in 2016, which mandated that the nine largest UK banks must develop and maintain a common API standard. The Open Banking Implementation Entity (OBIE) was created to develop and maintain these standards.
Unlike the EU's PSD2 approach which set principles but allowed varied implementations, the UK created a single, detailed specification that all banks had to follow. This standardization has been credited with creating a more consistent and developer-friendly ecosystem.
Today, UK Open Banking is expanding beyond the original CMA9 banks to include building societies, payment institutions, and other financial service providers. The ecosystem continues to evolve with new use cases like Variable Recurring Payments (VRPs) and premium APIs.
Timeline
Lessons for UAE
Mandatory Standards Work
The CMA mandate created a single API standard, avoiding the fragmentation seen in PSD2. All nine major banks had to implement the same specifications.
UAE follows this model with CBUAE mandating standards via Al Tareq.
Central Directory is Critical
The Open Banking Directory provides a single source of truth for participant verification and certificate management.
Al Tareq serves as the UAE equivalent, ensuring trust between participants.
Adoption Takes Time
Despite 2018 launch, meaningful consumer adoption only accelerated from 2021 onwards as use cases matured.
UAE should plan for a multi-year adoption curve with incremental growth.
Commercial Models Drive Scale
Free APIs for basic services, premium APIs for enhanced features. VRPs unlocked subscription and sweeping use cases.
UAE ecosystem should develop sustainable commercial models early.