USD 16.14 billion
Open Banking Market Size, Share, Growth Analysis, By Offering (Solutions (Payment initiation, Account Information, Identity Verification & Authentication, API Management), By Deployment (Cloud, On-premise), By Digital Channel (Web Portals, Mobile Apps), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG40A2004 |
Region:
Global |
Published Date: November, 2024
Pages:
157
|Tables:
90
|Figures:
76
Open Banking Market Insights
Global Open Banking Market size was valued at USD 15 billion in 2022 and is poised to grow from USD 20.5 billion in 2023 to USD 136.6 billion by 2031, growing at a CAGR of 26.8% in the forecast period (2024-2031).
The increase in popularity of online payment options has resulted in the expansion of the open banking market. The changing payment ecosystem, rising e-commerce platform use, progressing broadband connectivity, and rising application programming interface (API) acceptance are driving the market growth. To manage recurring billing, online services such Zelle, PayPal, and Venmo use payment gateway APIs; these APIs are frequently used in open financial transactions.
Additionally, it is expected that as technology progresses and big data analytics and artificial intelligence (AI) are becoming more prevalent, the use of open banking systems will rise. In the open banking industry, big data analytics are used to personalize the services and enhance the user experience, that is expected to bring in more customers. Additionally, open banking benefits from the whole value chain of the financial industry, including customers, enterprises, Fintechs, banks, and financial institutions. A customer in the financial services gets access to superior banking services and cutting-edge and personalized financial products thanks to the adoption of open banking across the sector because they have a number of options or service providers from which to select for their financial needs.
Moreover, the global open banking sector is expected to profit from lucrative growth opportunities given by the increasing investment in digital banking. For instance, the Arab National Bank (ANB), a financial institution in Saudi Arabia, integrated the open hybrid cloud platforms of Red Hat in December 2021 to support the growth of digital banking and open finance. ANB seeks to develop relationships with ecosystem partners in a more efficient and secure manner. ANB intended to accomplish this by using a microservices integration layer and APIs to create cloud-native applications and Banking-as-a-Service (BaaS) products on its Red Hat platform.
US Open Banking Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Banking & Capital Markets
Fastest Growth
Banking & Capital Markets
Growth Rate
26.8% CAGR
Global Open Banking Market ($ Bn)
Country Share for APAC Region (%)
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Open Banking Market Segmental Analysis
Global Open Banking Market is segmented by Offering, by Deployment, by Digital Channel, by application, by End User and by Region. Based on Offering, the market is segmented into Solutions, Services. Based on Deployment, the market is segmented into Cloud, On-premise. Based on Digital Channel, the market is segmented into Web Portals, Mobile Apps. Based on application, the market is segmented into Payment, Banking, Digital Lending, Wealth Management, Other. Based on End User, the market is segmented into Central Banks, Retail & Commercials Banks, Investment Banks, Insurance Companies, Credit Unions, Mortgage/Loan Providers, Wealth Management Firms, Fintechs, Payment Service Providers. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.
Open Banking Market Analysis by Services
In 2022, the market will be dominated by the banking & capital markets segment, and accounted for more than 45.0% of global revenue. The segment is expected to grow as a result of millennials' increasing desire for corporate finance tools. People's attention shifting from traditional investment methods to having to cut investment solutions is anticipated to open up profitable business chances for the market. The segment growth is expected to be driven by increasing use of advanced Ai platforms that may suggest investment options based on consumer needs by integrating algorithms and analytics. Over the forecast period, it is anticipated that the payments segment will grow the fastest. The growth's characteristics include an increase in internet usage globally and a surge in the use of multiple platforms for conducting online payments. By working with or partnering with such platform providers, banks had the opportunity to make the most of these developments and strengthen overall market position resulting in a positive outlook for the expansion of the segment.
Open Banking Market Analysis by Deployment
The on-premise segment dominated the open banking market in 2021 and represented for further than 52.0% of global revenue. Customers have easy access to the on-premise Open Banking, which provides a special way to better meet their needs. The fact that banks and other financial institutions utilize their own APIs, enabling third parties and banks should provide cutting-edge services, is another significant contributor to the segment's growth. A platform for open banking applications also invites users to participate in new financial data exchanges. Over the forecast period, the cloud segment is expected to grow at the fastest rate. Cloud deployment services enable the bank to gather an unprecedented amount of consumer data, analyze it, and offer tailored services where they are required. Additionally, cloud computing offers the highest security standards. Additionally, the cloud's scalability, flexibility, and real-time process technology are expected to open up new prospects for segment growth.
Global Open Banking Market By Product
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Open Banking Market Regional Insights
North America dominated the global market. With a market share of over 20.7% during the forecast period, this region is expected to grow significantly. Growth in users of modern apps and services can be observed in North America. Additionally, increasing consumer interaction and fulfilling banking consumers' requirements help the open banking market develop.
Over the forecast period, Asia Pacific is anticipated to encounter the highest CAGR growth. Since more individuals are becoming aware of the advantages of open banking systems in nations like China, India, and Japan, the regional market is expected to grow. The rapid advancement of digital payment services in Asia Pacific is also expected to aid the growth of the market.
Global Open Banking Market By Region
- Largest
- Fastest
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Open Banking Market Dynamics
Open Banking Market Drivers
Growing e-commerce platform
- The changing payment ecosystem, rising e-commerce platform use, progressing broadband connectivity, and rising application programming interface (API) acceptance are driving the market growth.
Increasing adoption of the open banking system
- The market is likely driven by the rising adoption of the open banking system in the Asia Pacific, since big data analytics are increasingly being employed in the open banking sector to customize services and improve user experience. The main factor driving the growth of open banking is an increase in the number of users of new wave applications and services. A favorable impact on market growth in the Asia Pacific region has also been made by the collaboration between traditional banks and financial service providers.
Open Banking Market Restraints
Rising frequency of cyberattacks and online frauds
- Over the course of the forecast period, the rising frequency of cyberattacks and online frauds is expected to restrain market growth. On the other hand, a massive increase in relationships among banks and service providers and fintech companies is anticipated to overcome these challenges by implementing technologies like artificial intelligence (AI) and machine learning to further effectively detect unusual behavior and enhance the services offered.
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Open Banking Market Competitive Landscape
The preponderance of open financial companies is based in the fin-tech and banking. Government policies and regulations have a significant impact on how these businesses operate.
Open Banking Market Top Player’s Company Profiles
- Plaid
- Tink (Visa)
- Yodlee (Envestnet)
- TrueLayer
- Figo
- SaltEdge
- Token.io
- Mambu
- W.UP (Finastra)
- OpenWrks
- MX
- Finicity (Mastercard)
- Form3
- Nordic API Gateway (Mastercard)
- Meniga
- BBVA Open Platform
- Marqeta
- Bankable
- Teller
- Bud Financial
Open Banking Market Recent Developments
- In July 2022, Together, Finastra and HSBC worked on API-driven connection to provide mid-sized banks with an FX capability as a service.
- In September 2022, in order to advertise a multi-year next-generation technology which focuses on assisting community and financial institutions to innovate quickly and respond to changing needs of account holders, Jack Henry & Associates, Inc. collaborated with Google Cloud.
Open Banking Key Market Trends
- An optimistic outlook for the market has been produced by the increasing need for more flexible and reliable investment options global. Accordingly, another element driving growth is the widespread use of new wave services and apps. Access to superior banking services and cutting-edge, customized financial products is provided via open banking. Additionally, new applications and services that enable clients to obtain consolidated account information from numerous financial service providers are becoming more and more popular, which is promoting market expansion. In addition, the use of big data analytics in open banking to gather, process, and analyze both structured and unstructured data is driving market growth. Moreover, the market is increasing due to the use of artificial intelligence (AI) and the Internet of Things (IoT) to manage financial crime risk and regulate financial goals, resources, and data. Additionally, the growing demand for open banking across the financial services industry's value chain—among consumers, businesses, Fintech companies, banks, and financial institutions—to provide customers with more specialty and pertinent product offerings is positively influencing the market's growth. The market is expanding due to a number of other factors, such as shifting consumer preferences, the implementation of various government initiatives to make APIs compulsory open, and significant growth in the banking, financial services, and insurance (BFSI) industry.
Open Banking Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
The use of open banking systems is anticipated to rise as a result of technology's continuous modernization and the subsequent development in big data analytics and applications of artificial intelligence. Big data analytics are used to personalize the offerings and improve the user experience in the open banking sector, which is anticipated to lead to increased customer retention over the forecast period.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 15 billion |
| Market size value in 2031 | USD 136.6 billion |
| Growth Rate | 26.8% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Open Banking Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Open Banking Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Open Banking Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Open Banking Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Open Banking Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Open Banking Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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