Press Release

Global Open Banking Market to Thrive with the Modernization of the Financial Institutions

The Global Open Banking Market size was valued at around USD 22.31 billion in 2023 and is estimated to grow at a CAGR of about 25.47% during the forecast period, i.e., 2024-30, cites MarkNtel Advisors in the recent research report. The global banking sector is undergoing a digital transformation, as evidenced by the growing influence of digital banking innovators and the increased digital transformation efforts of established institutions. According to the Global Digital Banking Index 2021, approximately 23% of the population, or approximately 450 million customers, held digital bank accounts in the 28 countries surveyed. As a result, financial institutions accelerated their digital growth, modernizing systems and infrastructure, in order to remain competitive. Consequently, they are securely sharing data and services with third-party providers, and Open Banking adoption is expanding.

Moreover, to maintain competitiveness, financial institutions are not only modernizing their systems but also securely enabling third-party access to their data and services. This shift promotes market expansion and innovation. Regions such as Asia-Pacific and the Middle East are particularly proactive in promoting digitalization, encouraging financial institutions to invest in open banking solutions. This commitment is expected to drive the Open Banking Market growth in the coming years.

Furthermore, recognizing the importance of global connections in the modern era, governments worldwide, including those of the UK, Mexico, and the US, actively advocate for open banking services. These initiatives aim to simplify cross-border financial transactions and enhance international trade relationships. Besides, North American and European nations have also prioritized broadening access to financial products and services over the past decade, significantly increasing the adoption rate of open banking solutions, further states the research report, “Global Open Banking Market Analysis, 2024.”

Global Open Banking Market Segmentation Analysis

Payments to Showcase Significant Growth Both in Retail Banking, as well as Corporate Banking

Based on the Service segment, the market is further bifurcated into, Retail Banking (Aggregation & Financial Management, Credit Risk Decisioning, Payments, Origination & Onboarding, and Others), Corporate Banking (Corporate Treasury, Financial Management, Credit Decisioning, Payments, Value Added Services, and Others), Capital Market, and Others. Of them, Payment services (Retail Banking & Corporate Banking) are gaining considerable traction across the Open Banking Market, capturing the noteworthy market share.

Moreover, leveraging the principles of open banking, innovative fintech companies, such as Google, Amazon, Facebook, Apple, etc., are introducing solutions that simplify & streamline payment processes for both individuals & businesses. Thus, the adoption of open banking for payment processes is experiencing a substantial boost.

Europe Showcased Substantial Growth Prospectus

Europe has strengthened its position as the leading contender in the Open Banking Market, owing largely to widespread adoption fueled by several critical factors. Standardized APIs, a variety of national standards, established expertise in non-retail payments, and influential associations governing mobile payment systems are all important components. Leading the charge in API standardization, the UK and France have laid strong foundations for successful Open Banking initiatives. This standardized approach ensures smooth integration and compatibility, contributing to the overall success of Open Banking initiatives across the region.

Furthermore, countries such as the Netherlands, Switzerland, and Spain stand out for their advances in digital advancement and for instilling trust in digital practices. Spain, in particular, leads in active digital engagement, with the highest number of "passported-in" third-party providers (TPPs) across the region. Consequently, the adoption of Open Banking has experienced a substantial surge in the European region.

Competitive Landscape

With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including Finleap, Revolut Ltd., Tink AB, Salesforce Inc., Worldline S.A., Tata Consultancy Services Limited, Capgemini, Oracle, Finicity (Mastercard), Jack Henry & Associates, Inc., Finastra, Global Payments, Virtusa Corp, Plaid Inc, etc., are looking forward to strengthening their market position.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends influencing the current scenario of the Global Open Banking Market?
3. What key factors would propel and impede the industry across the globe?
4. How has the industry been evolving in terms of geography & solution adoption?
5. How has the competition been shaping across various region?
6. How has the buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2018-28?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?