APIContext has released its UK Open Banking API Performance 2023-2024 Report, the annual analysis of the performance of the open banking APIs exposed by the large CMA9 UK banks (the nine largest banks required by UK law to provide open banking services), traditional High Street banks, credit card providers, building societies, and new digital banks (neobanks).
API performance is crucial for open banking as it ensures fast, reliable, and secure data exchanges between banks and third-party providers and should be prioritised by all banks to meet regulatory requirements, stay competitive, and deliver the speed and security that modern customers demand in their financial interactions. Doing so enables seamless customer experiences and fosters trust in the open banking ecosystem.
This report highlights key API trends and the current challenges impacting the UK open Banking industry – which is widely viewed as the world leader in the open banking sphere.
The report uncovered the following findings:
Bank Type Roles Have Changed:
The report reveals neobanks are leading in both availability and speed. For example, neobanks like Tide and Monzo excel in API performance, offering near-perfect availability and rapid response times for a superior user experience. In contrast, CMA9 banks maintain stable but slower services, while traditional banks lag significantly, with high latencies (up to 4500ms) and inefficient API call handling, impacting both user experience and operational costs, a trend that had been identified in previous reports.
Cloud Providers Variability Has Increased
Cloud provider performance has seen a general decline across all platforms compared to previous reports, despite variability increasing. Azure showed the most significant decline, especially in Northern Europe, where latency rose by 80%, regularly exceeding 2,000ms. Meanwhile, AWS and IBM outperformed Azure and Goo ..
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