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At a CAGR of 29.2% between 2023 and 2030, the worldwide open banking industry is forecast to expand from its 2022 valuation of USD 20.17 bn.
The growing number of agreements between traditional banks and fintech startups is fueling the industry's expansion. FinTech Automation (FTA), a Fintech-as-a-Service platform based in Dallas, Texas, for instance, announced a deal with Mastercard in August 2022. The goal of this collaboration was to provide a framework that would facilitate enterprises' access to technology partners for the development and widespread implementation of open banking solutions for loan underwriting and payment processing. The increasing use of application programming interfaces (APIs) and the evolution of the payment ecosystem are both positive signs for the future of the market.
Open banking is a banking service that enables customers to electronically share banking data. In addition, APIs are employed by open banking services to ensure the safety of data transmissions involving monetary details. Banks and other service providers share customer financial data with one another. Secure access to publicly available data, such as a bank's product offerings, is made possible by an API, but clients' personal information is protected from prying eyes. As a result of this, the customer's financial data is put to good use in cutting-edge apps that enhance the financial services user experience.
An increase in the use of cutting-edge app and service platforms is a major contributor to the expansion of the open banking sector. The open banking industry will also benefit from an increase in customer engagement and the number of people using financial services. Moreover, an open banking platform has several advantages that benefit the whole financial services industry, from banks and businesses to Fintechs and innovators. Because of this, the open banking market is expanding at a rapid rate. The expansion of the open banking sector is anticipated to be hampered, however, by rising instances of online fraud and data vulnerability. However, opportunities for open banking market expansion are anticipated to arise from the expected rise in cooperation between financial service providers and traditional banking and FinTech.
Growth in the Open Banking market is anticipated during the forecast time period on account of rising demand for Open Banking solutions in end-use verticals such as banking, healthcare, retail, manufacturing, insurance, training, and government. The demand for Open Banking systems has increased as consumers have become more informed about the benefits of these solutions. Additionally, the proliferation of digital transactions and mobile wallets is fueling the development of the Open Banking market. However, the expansion of this sector is being stymied by problems such as the high price of implementing Open Banking systems, a lack of legislative certainty, and security concerns.
Due to the rise of digitization and the prevalence of open banking, the use of digital payment methods has exploded in recent years. Increased e-commerce platform utilization, enhanced internet connectivity, and customer education about APIs are further driving the sector's growth. As a result of the COVID-19 epidemic, the open banking sector has expanded. Reduced social interaction caused by covid infection has had a major effect on the availability of financial services. The open banking sector has grown as a result of the rising popularity of contactless payments and application interfaces. In addition, numerous financial institutions and fintech firms have provided innovative digital solutions and created applications for a wide variety of payment methods over the time period, which is currently a major component driving the business.
The global banking industry is rapidly digitizing and adopting new technologies such as artificial intelligence, machine learning, and big data analytics, all of which are expected to fuel the expansion of the open banking market. More clients are expected to be attracted to the open banking sector as a result of the use of big data analytics to personalize services and improve the user experience. Another key aspect contributing to the expansion of the market is the rise in API security. The expansion of the world's e-commerce and online retail markets is also encouraging development in the open banking sector.
Venture capital businesses are increasingly investing in the open banking industry as its popularity grows. An example of this is the USD 32 million Series A investment round announced in May 2023 by MENA-based open banking platform Tarabut Gateway, with Pinnacle Capital as the lead investor. Tarabut Gateway used the money to increase its presence in the Saudi Arabian market as a whole. The expansion of key players' strategic initiatives and the introduction of innovative products are also anticipated to drive the market forward throughout the forecast period.
Report Coverage
Global Open Banking research report categorizes the market for global based on various segments and regions, forecasts revenue growth, and analyzes trends in each submarket. Global Open Banking report analyses the key growth drivers, opportunities, and challenges influencing the global market. Recent market developments and Open Banking competitive strategies such as expansion, product launch and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key Open Banking market players and analyses their core competencies in each global market sub-segments.
Key Points Covered in the Report
Competitive Environment:
The research provides an accurate study of the major organisations and companies operating in the global Open Banking market, along with a comparative evaluation based on their product portfolios, corporate summaries, geographic reach, business plans, Open Banking market shares in specific segments, and SWOT analyses. A detailed analysis of the firms' recent news and developments, such as product development, inventions, joint ventures, partnerships, mergers and acquisitions, strategic alliances, and other activities, is also included in the study. This makes it possible to assess the level of market competition as a whole.
List of Major Market Participants
Revolut Ltd., Yapily Ltd., BBVA SA, Nordigen Solutions, Finestra, Tink, Credit Agricole, Deposit Solutions, Societe Generale, Jack Henry & Associates, Inc.
Primary Target Market
Market Segment:
This study forecasts global, regional, and country revenue from 2019 to 2030. INFINITIVE DATA EXPERT has segmented the global Open Banking market based on the below-mentioned segments:
Global Open Banking Market, By Financial Services
Banking & Capital Markets
Payments
Digital Currencies
Value Added Services
Global Open Banking market, By Distribution Channel
Bank Channel
App market
Distributors
Aggregators
Global Open Banking market, Regional Analysis
The growing number of agreements between traditional banks and fintech startups is fueling the industry's expansion. FinTech Automation (FTA), a Fintech-as-a-Service platform based in Dallas, Texas, for instance, announced a deal with Mastercard in August 2022. The goal of this collaboration was to provide a framework that would facilitate enterprises' access to technology partners for the development and widespread implementation of open banking solutions for loan underwriting and payment processing. The increasing use of application programming interfaces (APIs) and the evolution of the payment ecosystem are both positive signs for the future of the market.
Open banking is a banking service that enables customers to electronically share banking data. In addition, APIs are employed by open banking services to ensure the safety of data transmissions involving monetary details. Banks and other service providers share customer financial data with one another. Secure access to publicly available data, such as a bank's product offerings, is made possible by an API, but clients' personal information is protected from prying eyes. As a result of this, the customer's financial data is put to good use in cutting-edge apps that enhance the financial services user experience.
An increase in the use of cutting-edge app and service platforms is a major contributor to the expansion of the open banking sector. The open banking industry will also benefit from an increase in customer engagement and the number of people using financial services. Moreover, an open banking platform has several advantages that benefit the whole financial services industry, from banks and businesses to Fintechs and innovators. Because of this, the open banking market is expanding at a rapid rate. The expansion of the open banking sector is anticipated to be hampered, however, by rising instances of online fraud and data vulnerability. However, opportunities for open banking market expansion are anticipated to arise from the expected rise in cooperation between financial service providers and traditional banking and FinTech.
Growth in the Open Banking market is anticipated during the forecast time period on account of rising demand for Open Banking solutions in end-use verticals such as banking, healthcare, retail, manufacturing, insurance, training, and government. The demand for Open Banking systems has increased as consumers have become more informed about the benefits of these solutions. Additionally, the proliferation of digital transactions and mobile wallets is fueling the development of the Open Banking market. However, the expansion of this sector is being stymied by problems such as the high price of implementing Open Banking systems, a lack of legislative certainty, and security concerns.
Due to the rise of digitization and the prevalence of open banking, the use of digital payment methods has exploded in recent years. Increased e-commerce platform utilization, enhanced internet connectivity, and customer education about APIs are further driving the sector's growth. As a result of the COVID-19 epidemic, the open banking sector has expanded. Reduced social interaction caused by covid infection has had a major effect on the availability of financial services. The open banking sector has grown as a result of the rising popularity of contactless payments and application interfaces. In addition, numerous financial institutions and fintech firms have provided innovative digital solutions and created applications for a wide variety of payment methods over the time period, which is currently a major component driving the business.
The global banking industry is rapidly digitizing and adopting new technologies such as artificial intelligence, machine learning, and big data analytics, all of which are expected to fuel the expansion of the open banking market. More clients are expected to be attracted to the open banking sector as a result of the use of big data analytics to personalize services and improve the user experience. Another key aspect contributing to the expansion of the market is the rise in API security. The expansion of the world's e-commerce and online retail markets is also encouraging development in the open banking sector.
Venture capital businesses are increasingly investing in the open banking industry as its popularity grows. An example of this is the USD 32 million Series A investment round announced in May 2023 by MENA-based open banking platform Tarabut Gateway, with Pinnacle Capital as the lead investor. Tarabut Gateway used the money to increase its presence in the Saudi Arabian market as a whole. The expansion of key players' strategic initiatives and the introduction of innovative products are also anticipated to drive the market forward throughout the forecast period.
Report Coverage
Global Open Banking research report categorizes the market for global based on various segments and regions, forecasts revenue growth, and analyzes trends in each submarket. Global Open Banking report analyses the key growth drivers, opportunities, and challenges influencing the global market. Recent market developments and Open Banking competitive strategies such as expansion, product launch and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key Open Banking market players and analyses their core competencies in each global market sub-segments.
| REPORT ATTRIBUTES | DETAILS |
|---|---|
| Study Period | 2017-2030 |
| Base Year | 2022 |
| Forecast Period | 2022-2030 |
| Historical Period | 2017-2021 |
| Unit | Value (USD Billion) |
| Key Companies Profiled | Revolut Ltd., Yapily Ltd., BBVA SA, Nordigen Solutions, Finestra, Tink, Credit Agricole, Deposit Solutions, Societe Generale, Jack Henry & Associates, Inc. |
| Segments Covered | • By Product |
| Customization Scope | Free report customization (equivalent to up to 3 analyst working days) with purchase. Addition or alteration to country, regional & segment scope |
Key Points Covered in the Report
- Market Revenue of Open Banking Market from 2021 to 2030.
- Market Forecast for Open Banking Market from 2021 to 2030.
- Regional Market Share and Revenue from 2021 to 2030.
- Country Market share within region from 2021 to 2030.
- Key Type and Application Revenue and forecast.
- Company Market Share Analysis, Open Banking competitive scenario, ranking, and detailed company
profiles. - Market driver, restraints, and detailed COVID-19 impact on Open Banking
Market
Competitive Environment:
The research provides an accurate study of the major organisations and companies operating in the global Open Banking market, along with a comparative evaluation based on their product portfolios, corporate summaries, geographic reach, business plans, Open Banking market shares in specific segments, and SWOT analyses. A detailed analysis of the firms' recent news and developments, such as product development, inventions, joint ventures, partnerships, mergers and acquisitions, strategic alliances, and other activities, is also included in the study. This makes it possible to assess the level of market competition as a whole.
List of Major Market Participants
Revolut Ltd., Yapily Ltd., BBVA SA, Nordigen Solutions, Finestra, Tink, Credit Agricole, Deposit Solutions, Societe Generale, Jack Henry & Associates, Inc.
Primary Target Market
- Market Players of Open Banking
- Investors
- End-users
- Government Authorities
- Consulting And Research Firm
- Venture capitalists
- Third-party knowledge providers
- Value-Added Resellers (VARs)
Market Segment:
This study forecasts global, regional, and country revenue from 2019 to 2030. INFINITIVE DATA EXPERT has segmented the global Open Banking market based on the below-mentioned segments:
Global Open Banking Market, By Financial Services
Banking & Capital Markets
Payments
Digital Currencies
Value Added Services
Global Open Banking market, By Distribution Channel
Bank Channel
App market
Distributors
Aggregators
Global Open Banking market, Regional Analysis
- Europe: Germany, Uk, France, Italy, Spain, Russia, Rest of Europe
- The Asia Pacific: China,Japan,India,South Korea,Australia,Rest of Asia Pacific
- South America: Brazil, Argentina, Rest of South America
- Middle East & Africa: UAE, Saudi Arabia, Qatar, South Africa, Rest of Middle East & Africa
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