What was Open Up 2018 Challenge about?
The Open Up Challenge was a £5m prize fund backed by the CMA to inspire the creation of next-generation services, apps and tools designed for the UK’s 5 million small businesses. It was funded by HSBC, Lloyds Bank, RBS, Santander and Barclays.
The Challenge was designed to encourage fintech firms to explore the opportunities provided by the new open banking data, which was being made available from 2018, to transform the way small businesses discover, access and use financial services. The prize was split into two stages; the first focused on surfacing innovation and the second on performance, growth and resilience.
What was stage 2 about?
During the second stage of the Challenge, we tested the robustness and growth potential of the solutions, as entrants transitioned to the real world environment of Open APIs. Due diligence evaluated the potential of the entrant and their proposed technology to deliver and sustain their solutions.
In June 2018, twelve finalists were selected by an independent judging panel to each receive a £100k grant, special access to open banking data and support to bring their products to market.
The list of twelve finalists included seven teams from the Challenge’s 2017 cohort, plus five new entrants. Their products and services reflect the breadth of innovation in financial technology for small businesses:
- personalised comparison services to find the best-value bank accounts and loans
- intelligent cashflow management
- ‘credit passports’ updated in real time
- automated completion of tax returns
- ‘trade intelligence’ tools to help UK small businesses to compete internationally, and
- marketplaces which enable small businesses to plug into additional fintech apps via their bank account.
Impact of the Challenge
- Over 80% of innovators were able to bring their innovations to market faster because of the Challenge. Legal support led teams through unfamiliar regulations and authorisation processes.
- The Challenge ensured that when open banking went live, SMEs of all sizes were able to choose from a diverse mix of tools and equipped teams to compete in this new market.
- Over 80% of innovators indicated that the Challenge increased their understanding of the open banking standards.
- The Challenge also created a feedback loop between Open Banking Limited (OBL), the body responsible for developing the open banking standards, and the fintech community.
- Angus McLean, Simmons & Simmons LLP
- Imran Gulamhuseinwala, EY
- Rowena Ironside, Digital Catapult & Women on Boards
- Jeni Tennison, Open Data Institute
- John Egan, Anthemis Group
- Niamh Barker, The Travelwrap Company
- Owain Service, Behavioural Insights Team
- Peter Smith, Blockchain
- Richard Roberts, University of Birmingham
- Simon Wardley, Leading Edge Forum