Open Banking Market Size
| Study Period | 2020-2029 |
| Market Size (2024) | USD 20 Billion |
| Market Size (2029) | USD 40.22 Billion |
| CAGR (2024 - 2029) | > 15.00 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Open Banking Market Analysis
The Open Banking Market size is estimated at USD 20 billion in 2024, and is expected to reach USD 40.22 billion by 2029, growing at a CAGR of greater than 15% during the forecast period (2024-2029).
Open Banking is a new financial paradigm that is gaining traction as the digital revolution spreads around the world. It symbolizes a change in banking towards a more unified, customer-focused strategy supported by technology and data sharing. Open banking, which provides application programming interfaces (APIs) for third parties to access financial data while adhering to data privacy regulations, is becoming increasingly popular. With this, customers can access a wide range of financial services and products. Numerous startups have invested in frontier fintech ideas and related advancements. Banks can use actionable insights from account aggregation by utilizing Open Banking APIs. Banks can learn more about their consumers and how to better serve them by partnering with third-party aggregators or becoming their aggregators. With the backing of US financial institutions and the FDX standard, Envestnet has expanded its Open Banking links significantly in recent times. Leading banks and fintechs in the sector have already teamed up to create innovative solutions utilizing the FDX API, which provides 660 data elements.
Open Banking Market Trends
Open Bank Users Growth is Propelling in Asia-Pacific
In the Asia-Pacific region, the growth of open banking users is driven by factors such as increasing digitalization, evolving consumer preferences, and innovation in the financial sector. While several nations, such as South Korea, Japan, Singapore, and India, have less formal or mandatory Open Banking policies, their governments are implementing several initiatives to encourage and hasten the adoption of data-sharing frameworks in the banking industry. An API Playbook has been released in Singapore by MAS and the Association of Banks to facilitate communication and data sharing between banks and Fintechs. The FSA in Japan has imposed requirements on banks to disclose their Open APIs policy, created a procedure for TPP authorization, and encouraged banks to enter into contracts with a minimum of one TPP.
Rise in Payments is Fuelling the Market
The market for open banking is expanding due to the rapid growth of digital payments. The open banking sector is growing as a result of the increase in the use of online payment platforms. Conventional payment methods such as credit cards frequently entail middlemen and extra charges. However, open banking empowers customers to initiate payments directly from their bank account, bypassing intermediaries and reducing transaction costs. This process benefits consumers and encourages competition among payment service providers, leading to the development of innovative payment solutions. Moreover, open banking enables faster payment processing, ensuring that transactions are completed swiftly and efficiently. Overall, the rise in payments is a driving force behind the expansion and adoption of open banking.
Open Banking Industry Overview
The Open Banking Market is moderately consolidated. The report covers the major players operating in the open banking market. The market is expected to grow during the forecast period due to international trade and investments, infrastructure development, and many other factors driving the market. Some prominent players include Plaid, Yodlee, Tink, Finastra, and Mambu.
Open Banking Market Leaders
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Plaid
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Yodlee
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Tink
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Finastra
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Mambu
*Disclaimer: Major Players sorted in no particular order
Open Banking Market News
- In October 2023: Salt Edge, a distinguished FinTech company, partnered with SeaPay Forge, a prominent Omni-Channel Payment Solutions provider, boosting open banking for Saudi Arabian businesses.
- In June 2023: Plaid made a new collaboration network to give fintech a way to share fraud intelligence. Plaid launched Beacon with ten founding members. The major members include Tally, Credit Genie, Veridian Credit Union, and Promise Finance.
Open Banking Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increased Demand for Personalized and Convenient Financial Services
4.3 Market Restraints
4.3.1 Ensuring the Security and Privacy of Customer Data
4.4 Market Opportunities
4.4.1 Ability to Create Personalized and Tailored Financial Experiences for Customers
4.5 Value Chain / Supply Chain Analysis
4.6 Porters 5 Force Analysis
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Buyers/Consumers
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitute Products
4.6.5 Intensity of Competitive Rivalry
4.7 Insights on Technological Innovations in the Market
4.8 Impact of Covid-19 on the Market
5. MARKET SEGMENTATION
5.1 By Banking Services
5.1.1 Banking & Capital Market
5.1.2 Payments
5.1.3 Digital Currencies
5.1.4 Value-Added Services
5.2 By Distribution Channel
5.2.1 Bank Channel
5.2.2 App Market
5.2.3 Distributors
5.2.4 Aggregators
5.3 By Deployment Model
5.3.1 On-Premises
5.3.2 Cloud
5.3.3 Hybrid
5.4 Geography
5.4.1 North America
5.4.1.1 US
5.4.1.2 Canada
5.4.1.3 Mexico
5.4.1.4 Rest of North America
5.4.2 Europe
5.4.2.1 Germany
5.4.2.2 UK
5.4.2.3 France
5.4.2.4 Russia
5.4.2.5 Spain
5.4.2.6 Rest of Europe
5.4.3 Asia Pacific
5.4.3.1 India
5.4.3.2 China
5.4.3.3 Japan
5.4.3.4 Rest of Asia Pacific
5.4.4 South America
5.4.4.1 Brazil
5.4.4.2 Argentina
5.4.4.3 Rest of South America
5.4.5 Middle East
5.4.5.1 UAE
5.4.5.2 Saudi Arabia
5.4.5.3 Rest of Middle East
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration
6.2 Company Profiles
6.2.1 Plaid
6.2.2 Yodlee
6.2.3 Tink
6.2.4 Finastra
6.2.5 Mambu
6.2.6 Token.io
6.2.7 TrueLayer
6.2.8 Axway
6.2.9 Salt Edge
6.2.10 FIS*
- *List Not Exhaustive
7. MARKET FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
Open Banking Industry Segmentation
Open banking in the financial services industry facilitates financial data sharing via application programming interfaces between banks and other service providers. Banks have often maintained closed systems that house clients' financial data. This report aims to provide a detailed analysis of the open banking market. It focuses on market dynamics, emerging trends in the segments and regional markets, and insights into the various product and application types. It also analyzes key market players and the competitive landscape. The open banking market is segmented by banking services, which include banking and capital markets, payments, digital currencies, and value-added services; by distribution channel, including bank channel, app market, distributors, and aggregators; by deployment model, including on-premises, cloud, and hybrid, and by geography including North America, Europe, Asia-Pacific, South America, and the Middle East. The report offers market size and forecasts for the open banking market regarding revenue (USD) for all the above segments.
| By Banking Services | |
| Banking & Capital Market | |
| Payments | |
| Digital Currencies | |
| Value-Added Services |
| By Distribution Channel | |
| Bank Channel | |
| App Market | |
| Distributors | |
| Aggregators |
| By Deployment Model | |
| On-Premises | |
| Cloud | |
| Hybrid |
| Geography | ||||||||
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Open Banking Market Research FAQs
How big is the Open Banking Market?
The Open Banking Market size is expected to reach USD 20 billion in 2024 and grow at a CAGR of greater than 15% to reach USD 40.22 billion by 2029.
What is the current Open Banking Market size?
In 2024, the Open Banking Market size is expected to reach USD 20 billion.
Who are the key players in Open Banking Market?
Plaid, Yodlee, Tink, Finastra and Mambu are the major companies operating in the Open Banking Market.
Which is the fastest growing region in Open Banking Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Open Banking Market?
In 2024, the North America accounts for the largest market share in Open Banking Market.
What years does this Open Banking Market cover, and what was the market size in 2023?
In 2023, the Open Banking Market size was estimated at USD 17 billion. The report covers the Open Banking Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Open Banking Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Open Banking Industry Report
Statistics for the 2024 Open Banking market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Open Banking analysis includes a market forecast outlook to for 2024 to (2024to2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Open Banking Market Report Snapshots
