Major players in the open banking market are Capital One, HSBC Bank plc, Banco Bilbao Vizcaya Argentaria S.A, NatWest Group plc, DBS Bank, Barclays, Lloyds Banking Group, Citigroup, Banco Santander S.A., Credit Agricole, NCR Corporation, DemystData, Figo GmbH, Finastra, Jack Henry & Associates Inc., and MineralTree Inc.,
The global open banking market grew from $19.24 billion in 2022 to $24.26 billion in 2023 at a compound annual growth rate (CAGR) of 26.1%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services and affecting many markets across the globe. The open banking market is expected to grow to $62.37 billion in 2027 at a CAGR of 26.6%.
The open banking market includes revenues earned by entities by account information service providers (AISPs) and payment initiation service providers (PISPs).The market value includes the value of related goods sold by the service provider or included within the service offering.
Only goods and services traded between entities or sold to end consumers are included.
Open banking is a banking practice in which third-party financial service providers can use application programming interfaces (APIs) to gain access to consumer banking, transactions, and other data from banks and NBFCs.These APIs deliver a secure way to share financial information between two parties and makes it easier for consumers to compare the details of current accounts and other banking services.
The open banking unites banks, third parties, and technology providers, allowing them to exchange data easily and securely for the benefit of their consumers.
North America was the largest region in the open banking market in 2022.Asia-Pacific is expected to be the fastest-growing region in the forecast period.
The regions covered in open banking market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.
The main types of services in open banking are transactional services, communicative services, and information services.Trade finance and cash management services are provided by transaction banking to businesses, government agencies, and other financial organizations.
The different financial services include bank and capital markets, payments, digital currencies, and value-added services and are deployed in various modes such as cloud, on-premises, and hybrid. The various distribution channels include bank channels, app markets, distributors, and aggregators.
The surge in the use of online platforms for making payments is contributing to the growth of the open banking market.The digital payment system is rapidly expanding with developing payment methods, increased e-commerce use, improved broadband access, and the advent of new technologies.
Payment gateway APIs are used by online platforms such as phone pay, Paytm, and Google Pay to manage recurring billing, and these APIs are often used in open banking.For instance, in August 2021, Google Pay, a US-based digital wallet platform crossed 1 billion transactions.
Additionally, in July 2021, PhonePe, a digital payments network, set a new milestone by processing 1.5 billion transactions through the unified payments interface (UPI). Therefore, the rise in the use of online platforms for making payments is expected to propel the growth of the open banking market going forward.
Big data analytics is a key trend gaining popularity in the open banking market.Big data analytics collects, processes, and analyzes structured, and unstructured data.
The major use of big data analytics is to get business insights into the data.In the open banking market, big data analytics is used to personalize the services for improving the customer experience.
For instance, in 2020, HSBC Bank plc, a UK-based investment banking company increased its investment in the use of artificial intelligence (AI) and big data analytics techniques to manage financial crime risk.
In June 2021, Visa Inc., a US-based financial services company acquired Tink for $2.15 billion. The acquisition is expected to accelerate European open banking adoption by providing a secure and dependable platform for innovation. As a result, customers will have more control over their financial experiences, including financial objectives, managing their funds, and financial data. Tink is a Sweden-based open banking company that helps banks, fintech, and start-ups across Europe develop database financial services.
The countries covered in the cryptocurrency market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
The open banking market research report is one of a series of new reports that provides open banking market statistics, including open banking industry global market size, regional shares, competitors with a open banking market share, detailed open banking market segments, market trends and opportunities, and any further data you may need to thrive in the open banking industry. This open banking market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.