Last year was a big one for open banking. With now over 12.09 million active users (as of December 2024) making over 224 million payments—23.13 million of which were Variable Recurring Payments (VRPs)— 2024 saw record-breaking growth. This incredible momentum sets the stage for open banking to bring even more value in 2025.
As highlighted in Open Banking Limited’s (OBL) latest predictions for 2025, this momentum continues with exciting regulatory developments, advancing technology, and bold ambitions for the future. The achievements of 2024 underscore the increasing consumer appetite for open banking, but what does this mean for businesses, consumers, and the wider fintech ecosystem? Let’s break it down.
A year of milestones and momentum
The UK Government’s announcement of the National Payments Vision underscores the “significant untapped potential” of open banking payments to foster innovation and competition. Key sectors such as e-commerce, utilities, and regulated financial services are set to benefit.
The groundwork laid by the Joint Regulatory Oversight Committee (JROC) in 2024 has already expanded market choice, particularly around VRPs. Commercial VRPs have paved the way for Account-to-Account (A2A) payments, which are thriving in various industries. As we move forward, the challenge is clear: to unlock even more use cases while tackling obstacles like fraud prevention and consumer protection.
In 2024 alone, 23.13 million VRPs were processed—a significant milestone that signals growing interest in this transformative payment method.
From data sharing to smart data economies – building the foundations for a £10 billion economy
The announcement of the Data (Use and Access) Bill is a game-changer, setting the stage for a £10 billion smart data economy over the next decade. This isn’t just about financial services-it’s about creating a framework for broader data sharing that can support innovations in everything from energy management to healthcare.
As OBL Chair Marion King rightly points out, the UK’s leadership in open banking has become a global blueprint, with over 60 jurisdictions looking to replicate its success.
Our co-founder, Fliss, shared her thoughts in the OBL Predictions piece referenced at the start of this blog:
“In 2025, we’re excited to see open banking deliver real-world, tangible benefits—whether that’s helping small businesses manage cash flow more effectively or enabling families to streamline their utility payments. The focus will be on making it easier for consumers and businesses alike to harness the power of these innovations.” – Fliss Berridge –
Shaping a global standard for open banking success
A recurring theme in OBL’s outlook is collaboration. From regulatory bodies in the UK such as the Financial Conduct Authority (FCA) to the Payments Systems Regulator (PSR) and the CMA9, the ecosystem’s collective efforts are instrumental in driving adoption and innovation.
However, the industry isn’t just looking inward. Global interoperability is gaining traction as a priority for 2025, with cross-border data-sharing frameworks expected to elevate open banking to a truly international standard, empowering both businesses and consumers on a global scale.
Driving adoption: why the time is now for open banking payments
The estimated 224 million open banking payments recorded last year illustrate both consumer appetite and the untapped potential for broader adoption.
One area of particular focus is Variable Recurring Payments (VRPs). These payment solutions have gained momentum, with now over 23.13 million transactions. As businesses continue to explore their application in subscription payments, utilities, and e-commerce, VRPs are becoming a cornerstone of the open banking payment landscape.
The National Payments Vision also emphasises the potential for open banking to drive innovation and competition in payments. This strategy highlights the opportunities for businesses to expand their services and deliver greater value to their customers.
How innovation and collaboration can elevate consumer protection
With growth comes responsibility. As open banking adoption expands, so does the need for robust measures to protect consumers. Fraud prevention and consumer protection remain critical as the ecosystem matures.
Open Banking Limited’s (OBL) 2025 outlook underscores the importance of collaboration among regulatory bodies, fintechs, and banks to maintain a safe, transparent, and inclusive ecosystem.
Industry leaders, including Ordo, are at the forefront of these efforts, working closely with regulators to develop innovative solutions that prioritise consumer safety while preserving the convenience and accessibility that make open banking so transformative.
Our team at Ordo has been instrumental in pioneering fraud detection technologies and enhancing transparency for both businesses and consumers. We leverage our secure, consent-driven platform, we enable organisations to meet evolving regulatory requirements while protecting their customers from emerging threats.
As open banking adoption continues to grow, safeguarding consumers has become increasingly important. In 2025, key priorities include:
- Ensuring secure data sharing and payments across the ecosystem to prevent fraud.
- Enhancing transparency so consumers can easily understand how their data is used.
- Aligning industry practices with evolving regulatory requirements through collaboration with regulators.
At Ordo, we’re working hand in hand with regulators, fintechs, and banks to address these priorities. Our focus is on delivering solutions that protect consumers without compromising the accessibility and convenience that make open banking transformative.
The future of financial inclusion: bridging the gaps with open banking
One of open banking’s most significant promises is its potential to enhance financial inclusion. By providing more tailored services and enabling better financial decision-making, the ecosystem can empower underserved communities and bridge gaps in access to financial services.
Looking ahead, the focus will be on leveraging digital identity solutions and smart data capabilities to make financial services more accessible to all.
Tackling fraud in the digital age: the open banking advantage
Fraud prevention is a cornerstone of trust in open banking. As digital payments and data-sharing expand, so do the associated risks. Yet, open banking offers a unique advantage: enhanced security through strong customer authentication (SCA) and robust data protection measures. Its secure, consent-driven framework provides a solid foundation to mitigate fraud effectively.
Innovation in fraud detection and prevention, supported by ecosystem-wide collaboration, will be critical to maintaining trust and driving adoption. As the ecosystem matures, close cooperation between regulators, banks, and fintechs will be critical to staying ahead of emerging threats and maintaining consumer confidence.
A look ahead, aligning with the National Payments Vision
As we enter 2025, the open banking journey is reaching a pivotal point. With regulatory clarity on the horizon, a maturing ecosystem, and continued growth in adoption, the focus must be on enhancing collaboration, education, and delivering the best value to both businesses and consumers.
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Let’s make 2025 the year open banking goes from promising to pivotal!