The open banking market size has grown exponentially in recent years. It will grow from $24.67 billion in 2023 to $31.01 billion in 2024 at a compound annual growth rate (CAGR) of 25.7%. The growth observed in the historic period can be attributed to the increasing demand for fast and real-time fund transfers, a rising adoption of digital banking services, strong economic growth in emerging markets, and government initiatives.
The open banking market size is expected to see exponential growth in the next few years. It will grow to $75.4 billion in 2028 at a compound annual growth rate (CAGR) of 24.9%. The anticipated growth in the forecast period can be attributed to a surge in the usage of online platforms, rising urbanization, an increase in younger generations, a rise in mergers and acquisitions, and increasing adoption of financial technology for payments. Key trends expected in the forecast period include a focus on the use of big data, the adoption of the banking-as-a-service (BaaS) model, an emphasis on personalization, a focus on variable recurring payments, strategic partnerships and investments, and the initiation of new initiatives and programs.
The growth of the open banking market is being fueled by the increasing adoption of online platforms for payments. The rapid expansion of the digital payment system, driven by evolving payment methods, heightened e-commerce utilization, enhanced broadband access, and advancements in technology, is a significant contributor. Online platforms such as PhonePe, Paytm, and Google Pay utilize payment gateway APIs to handle recurring billing, often integrated into open banking. For instance, Google Pay achieved over 1 billion transactions in August 2021, and PhonePe processed 1.5 billion transactions through the unified payments interface (UPI) in July 2021. This surge in online payment platform usage is poised to drive the growth of the open banking market.
The global increase in the younger population is poised to contribute significantly to the market's growth. Millennials, in particular, exhibit a high level of confidence in using technology for managing finances, with nearly three in four expressing such confidence. This demographic, accustomed to digital tasks, expects convenience, speed, and security in financial operations. Younger consumers are more open to experimenting with new tools and are inclined towards linking their bank accounts for various digital transactions. In India alone, millennials constitute 34% of the total population. In the ASEAN region, Millennials and Gen Z are projected to make up 75% of consumers by 2030. Thus, the expanding younger population is a driving force behind the growth of the open banking market.
A notable trend in the open banking market is the introduction of technologically advanced platforms and services. Businesses are actively seeking seamless access to banking and payment services, leading to continuous investments in digitization. For instance, Scotiabank launched Scotia TranXactTM in August 2022, a digital payments platform providing business banking clients with on-demand access to payment and cash management APIs. This move aligns with the ongoing digitization of cash and treasury management services, catering to the digital needs of global business banking clients.
The use of payment initiation API (Application Programming Interface) is emerging as a key trend in the open banking market. Companies are focusing on the development and launch of payment initiation service APIs to drive market growth. In September 2022, Celcoin introduced a payment initiation API in Brazil, designed to enhance flexibility for any company without requiring extensive open banking technology knowledge. This solution aims to streamline operations by eliminating intermediaries, enabling instant payments directly from customers' bank accounts.
In June 2021, Visa Inc. acquired Tink for $2.15 billion, aiming to accelerate open banking adoption in Europe. Tink, a Swedish open banking company, facilitates the development of innovative financial services for banks, fintech, and start-ups across Europe, providing customers with increased control over their financial experiences and data.
Major companies operating in the open banking market report are Banco Santander S.A, BBVA SA, Credit Agricole, HSBC Bank plc., Citigroup, Capital One, NatWest Group plc., DBS Bank, Lloyds Banking Group, Barclays, Axis Bank, Bank Of Baroda, BNL, FamPay, Federal Bank, Finin, HDFC Bank, Airwallex, American Express, ANZ, China Construction Bank (CCB), ICBC Bank, WeBank, ChiantiBanca, Ant Financial, Allied Irish Bank, Bank of Ireland, Danske, Nationwide, RBS Group, ING, Caixa Geral De Depositos, La Banque Postale, Cofidis, Hello bank, Bunq, BNP Paribas, Citi, OTP Bank, Ikano Bank, Oneggo Bank, Tinkoff Bank, Wise, Raiffeisen Bank, Microsoft Corporation, IBM, Amazon Web Services, Hewlett Packard Enterprise, Intel, Oracle Corporation, Deposit Solutions, Finestra, Jack Henry & Associates, Inc., Nordigen Solutions, AlphaPoint, Axway, Spire Technologies, Tarabut Gateway, Mono.
North America was the largest region in the open banking market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the open banking market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the open banking market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.
The primary services in open banking encompass transactional services, communicative services, and information services. Transaction banking provides trade finance and cash management services to businesses, government agencies, and other financial organizations. Various financial services are included under categories such as bank and capital markets, payments, digital currencies, and value-added services, and they can be deployed through different modes such as cloud, on-premises, and hybrid. Distribution channels for open banking services include bank channels, app markets, distributors, and aggregators.
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 an 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.
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.
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.
This product will be delivered within 3-5 business days.
The open banking market size is expected to see exponential growth in the next few years. It will grow to $75.4 billion in 2028 at a compound annual growth rate (CAGR) of 24.9%. The anticipated growth in the forecast period can be attributed to a surge in the usage of online platforms, rising urbanization, an increase in younger generations, a rise in mergers and acquisitions, and increasing adoption of financial technology for payments. Key trends expected in the forecast period include a focus on the use of big data, the adoption of the banking-as-a-service (BaaS) model, an emphasis on personalization, a focus on variable recurring payments, strategic partnerships and investments, and the initiation of new initiatives and programs.
The growth of the open banking market is being fueled by the increasing adoption of online platforms for payments. The rapid expansion of the digital payment system, driven by evolving payment methods, heightened e-commerce utilization, enhanced broadband access, and advancements in technology, is a significant contributor. Online platforms such as PhonePe, Paytm, and Google Pay utilize payment gateway APIs to handle recurring billing, often integrated into open banking. For instance, Google Pay achieved over 1 billion transactions in August 2021, and PhonePe processed 1.5 billion transactions through the unified payments interface (UPI) in July 2021. This surge in online payment platform usage is poised to drive the growth of the open banking market.
The global increase in the younger population is poised to contribute significantly to the market's growth. Millennials, in particular, exhibit a high level of confidence in using technology for managing finances, with nearly three in four expressing such confidence. This demographic, accustomed to digital tasks, expects convenience, speed, and security in financial operations. Younger consumers are more open to experimenting with new tools and are inclined towards linking their bank accounts for various digital transactions. In India alone, millennials constitute 34% of the total population. In the ASEAN region, Millennials and Gen Z are projected to make up 75% of consumers by 2030. Thus, the expanding younger population is a driving force behind the growth of the open banking market.
A notable trend in the open banking market is the introduction of technologically advanced platforms and services. Businesses are actively seeking seamless access to banking and payment services, leading to continuous investments in digitization. For instance, Scotiabank launched Scotia TranXactTM in August 2022, a digital payments platform providing business banking clients with on-demand access to payment and cash management APIs. This move aligns with the ongoing digitization of cash and treasury management services, catering to the digital needs of global business banking clients.
The use of payment initiation API (Application Programming Interface) is emerging as a key trend in the open banking market. Companies are focusing on the development and launch of payment initiation service APIs to drive market growth. In September 2022, Celcoin introduced a payment initiation API in Brazil, designed to enhance flexibility for any company without requiring extensive open banking technology knowledge. This solution aims to streamline operations by eliminating intermediaries, enabling instant payments directly from customers' bank accounts.
In June 2021, Visa Inc. acquired Tink for $2.15 billion, aiming to accelerate open banking adoption in Europe. Tink, a Swedish open banking company, facilitates the development of innovative financial services for banks, fintech, and start-ups across Europe, providing customers with increased control over their financial experiences and data.
Major companies operating in the open banking market report are Banco Santander S.A, BBVA SA, Credit Agricole, HSBC Bank plc., Citigroup, Capital One, NatWest Group plc., DBS Bank, Lloyds Banking Group, Barclays, Axis Bank, Bank Of Baroda, BNL, FamPay, Federal Bank, Finin, HDFC Bank, Airwallex, American Express, ANZ, China Construction Bank (CCB), ICBC Bank, WeBank, ChiantiBanca, Ant Financial, Allied Irish Bank, Bank of Ireland, Danske, Nationwide, RBS Group, ING, Caixa Geral De Depositos, La Banque Postale, Cofidis, Hello bank, Bunq, BNP Paribas, Citi, OTP Bank, Ikano Bank, Oneggo Bank, Tinkoff Bank, Wise, Raiffeisen Bank, Microsoft Corporation, IBM, Amazon Web Services, Hewlett Packard Enterprise, Intel, Oracle Corporation, Deposit Solutions, Finestra, Jack Henry & Associates, Inc., Nordigen Solutions, AlphaPoint, Axway, Spire Technologies, Tarabut Gateway, Mono.
North America was the largest region in the open banking market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the open banking market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the open banking market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.
The primary services in open banking encompass transactional services, communicative services, and information services. Transaction banking provides trade finance and cash management services to businesses, government agencies, and other financial organizations. Various financial services are included under categories such as bank and capital markets, payments, digital currencies, and value-added services, and they can be deployed through different modes such as cloud, on-premises, and hybrid. Distribution channels for open banking services include bank channels, app markets, distributors, and aggregators.
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 an 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.
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.
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.
This product will be delivered within 3-5 business days.
Table of Contents
1. Executive Summary2. Open Banking Market Characteristics3. Open Banking Market Trends and Strategies32. Global Open Banking Market Competitive Benchmarking33. Global Open Banking Market Competitive Dashboard34. Key Mergers and Acquisitions in the Open Banking Market
4. Open Banking Market - Macro Economic Scenario
5. Global Open Banking Market Size and Growth
6. Open Banking Market Segmentation
7. Open Banking Market Regional and Country Analysis
8. Asia-Pacific Open Banking Market
9. China Open Banking Market
10. India Open Banking Market
11. Japan Open Banking Market
12. Australia Open Banking Market
13. Indonesia Open Banking Market
14. South Korea Open Banking Market
15. Western Europe Open Banking Market
16. UK Open Banking Market
17. Germany Open Banking Market
18. France Open Banking Market
19. Italy Open Banking Market
20. Spain Open Banking Market
21. Eastern Europe Open Banking Market
22. Russia Open Banking Market
23. North America Open Banking Market
24. USA Open Banking Market
25. Canada Open Banking Market
26. South America Open Banking Market
27. Brazil Open Banking Market
28. Middle East Open Banking Market
29. Africa Open Banking Market
30. Open Banking Market Competitive Landscape and Company Profiles
31. Open Banking Market Other Major and Innovative Companies
35. Open Banking Market Future Outlook and Potential Analysis
36. Appendix
Executive Summary
Open Banking Global Market Report 2024 provides strategists, marketers and senior management with the critical information they need to assess the market.This report focuses on open banking market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Reasons to Purchase
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- Measure the impact of high global inflation on market growth.
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- Outperform competitors using forecast data and the drivers and trends shaping the market.
- Understand customers based on the latest market shares.
- Benchmark performance against key competitors.
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- Report will be updated with the latest data and delivered to you along with an Excel data sheet for easy data extraction and analysis.
- All data from the report will also be delivered in an excel dashboard format.
Where is the largest and fastest growing market for open banking? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? This report answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.
- The market characteristics section of the report defines and explains the market.
- The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
- The forecasts are made after considering the major factors currently impacting the market. These include:
- The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
- The impact of higher inflation in many countries and the resulting spike in interest rates.
- The continued but declining impact of COVID-19 on supply chains and consumption patterns.
- Market segmentations break down the market into sub markets.
- The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
- The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
- The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.
Report Scope
Markets Covered:1) By Service Type: Transactional Services; Communicative; Informative Services
2) By Distribution Channel: Bank Channels; App Market; Distributors; Aggregators
3) By Financial Services: Bank and Capital Markets; Payments; Digital Currencies; Value Added Services
4) By Deployment: Cloud; On-Premises; Hybrid
Key Companies Mentioned: Banco Santander S.A; BBVA SA; Credit Agricole; HSBC Bank plc.; Citigroup
Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time Series: Five years historic and ten years forecast
Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita
Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes
Delivery Format: PDF, Word and Excel Data Dashboard
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Banco Santander S.A
- BBVA SA
- Credit Agricole
- HSBC Bank plc.
- Citigroup
- Capital One
- NatWest Group plc.
- DBS Bank
- Lloyds Banking Group
- Barclays
- Axis Bank
- Bank Of Baroda
- BNL
- FamPay
- Federal Bank
- Finin
- HDFC Bank
- Airwallex
- American Express
- ANZ
- China Construction Bank (CCB)
- ICBC Bank
- WeBank
- ChiantiBanca
- Ant Financial
- Allied Irish Bank
- Bank of Ireland
- Danske
- Nationwide
- RBS Group
- ING
- Caixa Geral De Depositos
- La Banque Postale
- Cofidis
- Hello bank
- Bunq
- BNP Paribas
- Citi
- OTP Bank
- Ikano Bank
- Oneggo Bank
- Tinkoff Bank
- Wise
- Raiffeisen Bank
- Microsoft Corporation
- IBM
- Amazon Web Services
- Hewlett Packard Enterprise
- Intel
- Oracle Corporation
- Deposit Solutions
- Finestra
- Jack Henry & Associates, Inc
- Nordigen Solutions
- AlphaPoint
- Axway
- Spire Technologies
- Tarabut Gateway
- Mono.
Methodology
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Table Information
Report Attribute | Details |
---|---|
No. of Pages | 200 |
Published | February 2024 |
Forecast Period | 2024 - 2028 |
Estimated Market Value ( USD | $ 31.01 Billion |
Forecasted Market Value ( USD | $ 75.4 Billion |
Compound Annual Growth Rate | 24.9% |
Regions Covered | Global |