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2025-01-15
The UK’s open banking ecosystem continues to set the global standard, but as the industry evolves, so do its challenges. APIContext’s latest UK Open Banking API Performance 2023-2024 Report provides a comprehensive analysis of the performance of open banking APIs across the UK’s financial institutions, including CMA9 banks, traditional High Street banks, credit card providers, building societies, and neobanks. This report sheds light on the shifting dynamics of API performance, the role of cloud providers, and the critical importance of infrastructure choices in maintaining the UK’s leadership in open banking.
of Key Findings
1. Neobanks Lead the Pack:
Neobanks like Tide and Monzo are setting the benchmark for API performance, offering near-perfect availability and rapid response times. In contrast, traditional banks and CMA9 institutions are struggling with slower services and higher latencies, impacting user experience and operational efficiency.
2. Cloud Provider Performance Declines:
Cloud providers have shown a general decline in performance, with Azure experiencing the most significant drop in Northern Europe, where latency increased by 80%. AWS and IBM, however, remain reliable, maintaining p99 response times under 600ms.
3. Data Centre Choices Impact Performance:
Akamai Connected Cloud (ACC) UK and AWS UK are the top performers for open banking applications, with p99 response times of 1084ms and 1150ms, respectively. Azure and Google Cloud lag behind, particularly in the UK, Ireland, and Eastern Europe.
4. Regulatory and Competitive Pressures:
The of Open Banking Standard v4.0 and the EU’s Digital Operational Resilience Act (DORA) are driving the need for improved API performance and resilience. The UK must act decisively to maintain its global leadership in open banking.
5. Monitoring and Metrics:
The report’s findings are based on approximately 8 million API calls monitored between July 1, 2023, and June 30, 2024, focusing on Financial-grade API (FAPI) consent endpoints.
What Undercode Say:
The APIContext report underscores the critical role of API performance in shaping the future of open banking. As the industry matures, the performance gap between traditional banks and neobanks is narrowing, but challenges remain. Here’s a deeper analysis of the key takeaways:
1. The Rise of Neobanks:
Neobanks have emerged as the frontrunners in API performance, leveraging their digital-first approach to deliver faster, more reliable services. This shift highlights the importance of agility and innovation in meeting customer expectations. Traditional banks must accelerate their digital transformation efforts to remain competitive.
2. Cloud Provider Variability:
The decline in cloud provider performance, particularly Azure’s struggles in Northern Europe, raises concerns about the resilience of open banking infrastructure. Financial institutions must carefully evaluate their cloud partnerships and consider multi-cloud strategies to mitigate risks.
3. Data Centre Optimization:
The superior performance of Akamai Connected Cloud and AWS UK underscores the importance of strategic data centre choices. Banks and fintechs must prioritize low-latency, high-availability infrastructure to support critical open banking applications.
4. Regulatory Imperatives:
The of Open Banking Standard v4.0 and DORA reflects the growing emphasis on operational resilience and performance. Compliance with these standards is not just a regulatory requirement but a competitive advantage.
5. Customer-Centric Innovation:
At its core, open banking is about delivering seamless, secure, and personalized financial experiences. API performance is the backbone of this ecosystem, enabling real-time data sharing and innovative services. Banks that prioritize API excellence will be better positioned to build trust and drive adoption.
6. Global Leadership at Stake:
While the UK remains a global leader in open banking, the report highlights the need for continuous improvement. As other regions, particularly the EU, ramp up their efforts, the UK must invest in infrastructure, innovation, and regulatory alignment to maintain its edge.
In conclusion, the APIContext report serves as a wake-up call for the UK’s open banking industry. The findings highlight both progress and challenges, offering a roadmap for banks, fintechs, and regulators to collaborate and drive the next wave of innovation. By prioritizing API performance, resilience, and customer-centricity, the UK can solidify its position as the global leader in open banking.
To download the full APIContext UK Open Banking API Performance 2023-2024 Report, [click here]().
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