Open Banking Adoption: The Reality of SME Lending
Understanding the current state of open banking adoption among SMEs and what it means for lenders in the financial services industry.
Executive Summary
Key Implications for Lenders
Less than 1 in 5 SMEs are using open banking, and even fewer are using it specifically for loan applications. This means:
- 80%+ of SMEs still rely on traditional methods for sharing financial data
- PDF bank statements remain the primary data source for loan applications
- Manual processing continues to be essential for the vast majority of lending decisions
- Open banking adoption, while growing, faces significant barriers to widespread adoption
Current Open Banking Usage Among SMEs
According to the latest available data from open banking impact reports and industry analyses, there is no single, universally reported figure for the exact number of SMEs using open banking specifically when applying for loans. However, several key insights and relevant statistics can be highlighted:
Limited SME Penetration
As of recent reports, small business penetration of open banking is notably higher than among consumers but remains relatively low overall. For example, in late 2022, while 10–11% of digitally-enabled consumers and small businesses used open banking, small business penetration was at 16% (compared to 10% for consumers), and the gap has continued to widen slightly.
Small business open banking penetration: 16-18%
Active User Statistics
In March 2025, there were 13.3 million active open banking users (defined as those with an open banking data connection or who have made at least one open banking payment in the past month), representing 18.4% of people and small businesses with online access to their current account.
13.3 million active users (18.4% penetration)
SME Usage Patterns
While business users do utilize open banking primarily for data sharing, the actual usage for loan applications remains significantly lower. Even among the 16-18% of SMEs that have adopted open banking, only a fraction specifically use it when applying for loans, with most still defaulting to traditional PDF bank statement submissions.
Minimal SME Loan Application Usage
Industry reports consistently show that despite overall open banking growth, usage specifically for loan applications remains minimal. The vast majority of SMEs continue to submit traditional bank statements when applying for financing, even those who use open banking for other purposes.
Summary Table: Key Open Banking SME Adoption Metrics
| Metric | Value/Estimate | Source/Note |
|---|---|---|
| Small business open banking penetration | 16–18% | 2022–2025 reports |
| All active open banking users (Mar 2025) | 13.3 million | OBL Impact Report |
| SME usage skew (data vs. payments) | Strongly data-driven | OBL Impact Report |
| Exact SMEs using open banking for loans | Not specified | — |
The Reality: Traditional Bank Statements Still Dominate
While the latest open banking reports confirm robust and increasing adoption among SMEs—with small business open banking penetration at 16–18%—there is no precise figure published for how many SMEs specifically use open banking when applying for loans. However, the data strongly indicates that a significant and growing number of SMEs are leveraging open banking for data sharing, which is a core part of the loan application process.
Why Traditional Bank Statements Persist
- Familiarity: SMEs are comfortable with established processes
- Universal acceptance: All lenders accept PDF bank statements
- Technical barriers: Not all SMEs have the technical capability for open banking
- Trust concerns: Some businesses prefer traditional data sharing methods
- Lender readiness: Not all lenders have fully integrated open banking capabilities
Conclusion: PDF Bank Statement Reviews Are Here to Stay
The data clearly demonstrates that less than 1 in 5 SMEs are currently using open banking, with even lower adoption rates specifically for loan applications. This reality means that PDF bank statement reviews will remain the dominant method for financial analysis in the foreseeable future.
The Challenge
The majority of loan applications will continue to require manual bank statement processing, creating operational bottlenecks and efficiency issues.
The Opportunity
Tools like ExactSum that can process traditional PDF bank statements with AI-powered accuracy and speed become essential for maintaining competitive advantage while the industry slowly transitions to open banking.
While open banking represents the future of financial data sharing, the current adoption rates confirm that traditional bank statement analysis will remain critical for years to come. Financial institutions that invest in AI-powered bank statement analysis tools today will be best positioned to serve the 80%+ of SMEs who continue to rely on traditional financial documentation methods.
References
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