The first project of its kind, it was backed by the Competition and Markets Authority and funded by eight of the UK’s largest providers of small business funding – Barclays, HSBC, Lloyds Banking Group, RBS, Santander, AIB Group (UK) plc, Bank of Ireland UK and Danske Bank.
Twenty five companies were awarded £4.5 million in total, with pay-outs ranging from £50,000 development grants to £200,000 prizes for the overall winners.
The majority of the 20 companies who participated in challenge in 2017 said the challenge had helped them accelerate their plans and ensured they were better informed about open banking. Almost one in three said it allowed them to pursue additional business opportunities, and half said that it meant they strengthened or made valuable relationships.
Most of the 12 companies in the 2018 round credited the Open Up Challenge with allowing them to develop new products and ideas, and to take additional risks. More than half said it helped them secure external investment and commercial partnerships.
Coconut, which launched with four staff in January 2018, recently raised £2 million in crowdfunding and will soon have 25 employees.
Some 7,000 freelancers and other small businesses have opened accounts – a number that is projected to rise to 30,000 by the end of 2019 and to 500,000 in five years.
Sam said: “The Open Up Challenge was key to us being able to launch quickly. The funding enabled us to deliver more quickly, the commercial support helped us understand the market better and the legal support was great for getting some contracts in place.
“It was transformative.”