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The State of Open Banking APIs: UK’s Progress and Challenges in 2023-2024

UK Open Banking Report

As Open Banking continues to redefine financial services worldwide, the UK remains at the forefront of this revolution. Our 2023-2024 UK Open Banking API Performance Report, conducted in partnership with Finextra, provides critical insights into how well Open Banking APIs are performing, where improvements are being made, and what challenges remain. This report, now in its fourth annual iteration, draws on over 8 million API test calls made to 29 UK banks, including the largest CMA9 banks, neobanks, and traditional financial institutions.

The findings not only highlight the UK’s continued leadership in Open Banking but also offer valuable lessons for markets globally as Open Finance initiatives take root.

Why It’s Important to Track Open Banking API Performance

Open Banking APIs are the backbone of a modern, interconnected financial ecosystem. They enable secure data sharing, foster innovation, and power new customer-centric financial services. From seamless payment processing to personalized financial management tools, these APIs underpin digital services that users increasingly rely on.

But with great potential comes great responsibility. Poor-performing APIs can cost millions in additional engineering resources, create frustrating customer experiences, and jeopardize the UK’s competitive edge. By rigorously monitoring these APIs, the report helps identify areas for improvement while benchmarking progress year over year.

Highlights from the 2023-2024 Report

This year’s report reveals both encouraging progress and areas of concern:

  • CMA9 Banks Are Closing the Gap: The UK’s largest banks have made noticeable strides, with improvements in reliability and speed that bring them closer to the performance levels of neobanks. This is a significant change from previous years, where neobanks dominated.
  • Neobanks Show Signs of Strain: While neobanks like Tide and Monzo continue to lead in availability and speed, their performance has plateaued slightly, raising questions about how these digital-first players will maintain their edge amid increasing competition.
  • Azure Cloud’s Decline Continues: For the third consecutive year, APIs hosted on Microsoft Azure lagged behind competitors like AWS and IBM. With DNS lookup times increasing by 80% compared to two years ago, Azure remains a bottleneck for financial applications.
  • Traditional Banks Improve but Lag: Although their performance has moved from the “Yellow Zone” to the “Green Zone” in our CASC scoring system, traditional banks remain slower and less reliable than their digital and CMA9 counterparts.

These findings underscore the critical role infrastructure plays in Open Banking success and the need for continued investment in modernization.

Looking Back: Key Trends Over the Years

Over the past three years, our reports have captured the evolution of Open Banking in the UK:

  • Neobanks’ Dominance: Starting as the clear leaders, neobanks established themselves as performance benchmarks for speed and reliability. However, this year suggests they may face challenges sustaining their edge.
  • CMA9’s Resilience: The largest banks have steadily improved, reflecting their investments in digital transformation and infrastructure.
  • Cloud Wars: Year after year, cloud provider performance has been a major determinant of API latency. Azure’s decline, in particular, has been a persistent issue, while AWS and IBM consistently outperform.

Why This Matters Globally

The UK’s Open Banking ecosystem serves as a template for markets in Europe, Asia, and the Americas. As countries adopt Open Finance frameworks, the UK’s lessons—both successes and challenges—offer a roadmap for building reliable, scalable, and user-centric financial ecosystems. With the UK’s leadership now under pressure, maintaining its position will require a continued focus on performance, innovation, and regulation.

Download the Full Report

The full 2023-2024 UK Open Banking API Performance Report is now available on the Finextra website. Whether you’re a financial institution, fintech, or developer, this report provides actionable insights to help you navigate the evolving Open Banking landscape.

Download the Full Report Here

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