Open Banking integration accelerates

What does this mean for demand for IT Security Talent?

Alex Speedie

February 25, 2025

The UK Government's recent announcement of a £49 million tender to integrate Open Banking technology into the Gov.UK Pay platform underscores the rapid acceleration of this technology’s adoption. This initiative will enable more than 750 public sector services to leverage Open Banking, with the platform already having processed over 94 million transactions since its inception in 2016.

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The Open Banking ecosystem is extensive, encompassing payment initiation services, loan comparison platforms, personal finance management tools, credit scoring solutions, and account aggregation services. With widespread adoption across the fintech and financial services sectors, Open Banking has sparked significant innovation, giving rise to new business models and opportunities. A prime example is Emma, a financial management app designed to provide consumers with greater visibility and control over their finances.

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Meanwhile, new research from data and payments platform Moneyhub highlights growing consumer confidence in Open Banking. According to the study, 45% of respondents are comfortable using Open Banking for recurring payments, while 39% trust it for larger transactions. These findings align with a recent Mastercard report, which revealed that 93% of respondents expect increased Open Banking integration over the next five years. Additionally, a separate study found that 61% of UK consumers are either highly or somewhat likely to adopt Open Banking in the future. Given that Open Banking was only introduced in 2018, its adoption rate is remarkable. One in seven digitally active UK consumers has already engaged with the technology, according to Andy Wiggan, Chief Product Officer at GoCardless.

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As Open Banking adoption continues to grow, traditional online payment methods, such as card-based transactions, are expected to decline. However, this transition also raises cybersecurity concerns. Global e-commerce merchants lost over $48 billion to fraud in a single year, a 16% increase, according to Juniper Research. Open Banking offers an opportunity to enhance security, but consumer confidence in the safety of these transactions will be a key factor in widespread adoption. Protecting customer data at all stages, whether in transit, at rest, or in use, is critical. Third-party providers must implement rigorous security measures to safeguard shared personal account data. Failure to do so could lead to fraud, reputational damage, and setbacks in Open Banking adoption.

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To enhance security, the UK has adopted OAuth 2.0, a widely recognised authentication protocol that utilises secure tokens for transaction authentication. These tokens must be carefully managed, as they serve as essential access credentials within the Open Banking framework. If they lack expiration controls or transaction-specific attributes, they become vulnerable to misuse. Given the interconnected nature of Open Banking, a robust, end-to-end security framework is essential. Equally important is the investment in a highly skilled cybersecurity workforce to mitigate risks effectively. While Open Banking has not yet experienced a major security breach, complacency would be a mistake. Skilled engineers play a vital role in preventing fraud and maintaining trust in the system.

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As Open Banking adoption deepens, demand for cybersecurity professionals is set to rise. If adoption increases from its current 40%+ level to 80%, will the industry require double the number of security specialists? While that may sound fanciful, it is clear that security resources must scale alongside growth.

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At Rex Machina, we specialise in helping fintechs position themselves as employers of choice, ensuring they attract the talent necessary for accelerated growth. If your organisation is facing challenges in securing top IT security professionals or other key roles, we are here to help you build a high-performing team. Contact us to learn more, or schedule a consultation at your convenience.

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Open Banking integration accelerates

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