Open Banking Market to Grow with a CAGR of 27.9% Globally through 2029
Surge in
regulatory initiatives and changing consumer behavior are driving the Global
Open Banking Market in the forecast period 2025-2029.
According to
TechSci Research report, “Global Open Banking Market - Industry Size, Share,
Trends, Competition Forecast & Opportunities, 2029”, the Global Open
Banking Market stood at USD 22.54 Billion in 2023 and is anticipated to grow
with a CAGR of 27.9% in the forecast period, 2025-2029. The Global Open Banking
Market is undergoing a transformative shift, driven by a convergence of
regulatory initiatives, technological advancements, changing consumer expectations,
the rise of FinTech, and the globalization of financial services. Open banking,
a system where financial institutions share data and services with third-party
providers through APIs, is disrupting traditional banking models and fostering
a more interconnected and innovative financial ecosystem.
One of the
primary drivers of the Global Open Banking Market is the regulatory push
towards transparency and competition. Regulatory initiatives, such as the
Revised Payment Service Directive (PSD2) in Europe, mandate banks to open up
access to customer account information and payment services. This has catalyzed
the adoption of open banking frameworks globally, as regulators recognize the
potential benefits of fostering innovation, enhancing financial services, and
empowering consumers with greater control over their financial data.
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"Global Open Banking Market”
Technological
advancements, particularly the widespread adoption of Application Programming
Interfaces (APIs), represent another key driver. APIs serve as the foundation
of open banking, enabling secure and standardized communication between diverse
systems. The integration of APIs facilitates seamless data exchange, real-time
transactions, and the development of innovative financial products and
services. The use of advanced technologies, including cloud computing,
artificial intelligence, and blockchain, further amplifies the impact of open
banking, making financial operations more efficient and creating opportunities
for novel solutions.
Changing
consumer behavior and expectations are pivotal in shaping the Global Open
Banking Market. Modern consumers, particularly digital-native generations, seek
personalized, convenient, and digitally-driven banking experiences. Open
banking addresses this demand by providing individuals with a holistic view of
their financial landscape, enabling them to access a wide array of products and
services through a unified platform. The emphasis on seamless integration and
user-friendly interfaces is redefining the way consumers interact with their
finances, making open banking a key enabler of customer-centric financial
services.
The emergence
and proliferation of FinTech firms and non-banking players represent another
dynamic driver. Traditional banks face heightened competition from agile and
innovative FinTech companies leveraging open banking frameworks to deliver
specialized and tailored financial solutions. The entry of technology giants
into the financial services sector further intensifies competition and
accelerates the adoption of open banking models. Collaborations and
partnerships between traditional banks and FinTech players are becoming
commonplace as financial institutions seek to harness external expertise to
enhance their service offerings and remain competitive.
Globalization
and the demand for efficient cross-border transactions constitute the fifth
major driver of the Global Open Banking Market. Open banking facilitates secure
data sharing and interoperability, enabling seamless financial transactions
across borders. As businesses and individuals engage in international trade and
investment, the need for frictionless cross-border payments and financial
services becomes paramount. Open banking streamlines these processes, reducing
complexity and costs associated with cross-border transactions. Collaborations
between financial institutions from different regions are fostering
standardization of open banking practices on a global scale, contributing to
the development of an interconnected and interoperable global financial
ecosystem.
In conclusion,
the Global Open Banking Market is experiencing a paradigm shift, driven by
regulatory mandates, technological innovations, evolving consumer preferences,
the rise of FinTech, and the globalization of financial services. Open banking
is not merely a technological evolution; it represents a fundamental
reconfiguration of the financial industry, fostering collaboration, competition,
and innovation. As the market continues to evolve, the successful adoption of
open banking strategies will be essential for financial institutions to stay
competitive, meet regulatory requirements, and deliver innovative,
customer-centric financial services.
Major companies
operating in Global Open Banking Market are:
- Bannco
Bilbao Vizcaya Argentaria, S.A.
- Crédit
Agricole
- DemystData,
Ltd.
- Finleap
Connect
- Finastra
- FormFree
Holdings Corporation
- Jack
Henry & Associates, Inc.
- Mambu
- MineralTree,
Inc.
- NCR
Corporation
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“Technology and innovation
driving impact solutions is expected to have an impact on growth over the
forecasted period. Surge in regulatory initiatives and changing consumer
behavior will positively impact the Global Open Banking Market. Due to the wide
range of products available to meet specific needs of, as well as the growing
popularity of the digital payment, the market is growing at impressive rate
through projected period,” said Mr. Karan Chechi, Research Director with
TechSci Research, a research-based management consulting firm.
“Open Banking Market – Global Industry Size,
Share, Trends, Opportunity, and Forecast, Segmented By Financial Services
(Banking & Capital Markets, Payments, Digital Currencies, Value Added
Services), By Distribution Channel (Bank Channel, App Market, Distributors,
Aggregators), By Region, By Competition, 2019-2029”, has evaluated
the future growth potential of Global Open Banking Market and provides
statistics & information on market size, structure, and future market
growth. The report intends to provide cutting-edge market intelligence and help
decision makers take sound investment decisions. Besides, the report also
identifies and analyzes the emerging trends along with essential drivers,
challenges, and opportunities in Global Open Banking Market.
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