Open Banking Market Analysis and Forecast by 2031

The open banking is expected to expand at a CAGR of 28.3% from 2025 to 2031. The adoption of the open baking platform by major players is projected to assist the open banking market growth, as it is becoming recognized as a success factor for several financial firms. Open banking is a new concept, and the market is predicted to expand due to favorable government rules that control the usage of open banking platforms in a variety of financial and banking services. Furthermore, the introduction of new types of digital currencies by the central governments of various nations is expected to increase demand for open banking platforms that allow digital currencies to be used.

Open Banking Market Analysis

The increased use of new wave apps and services is a crucial factor contributing to the expansion of the open banking business. Furthermore, increased customer involvement and attendance by banking consumers are required to drive the expansion of the open banking business. Furthermore, there are other advantages to using an open banking platform that benefit all parties involved in the financial services sector, including banks, corporations, Fintechs, and entrepreneurs. This is a significant aspect in promoting the growth of the open banking sector.

Open Banking Market Overview

• Open banking is a financial instrument that openly publishes or securely shares customers' data through an application programming interface (APIs) with third party service providers. APIs are used as a protected method of communication between third-parties service providers and online banking systems. An open banking API provides security for private data of bank customers which is used by third party’s service providers. These APIs used by banks can be connected with third-party technology to perform certain banking data-related operations, promoting the growth of the open banking sector. The open banking platform is used for personal financial management, allowing customers to access snapshots of their financial histories. It is also used to perform an affordability check, which helps to streamline loan processes by giving lenders one-time access to a user's bank data.

REGIONAL FRAMEWORK

Open Banking Market Driver and Opportunities

Substantial Benefits of Open Banking to Drive the Open Banking Market

• Open banking benefits the whole value chain of the financial services industry, including consumers, enterprises, Fintech companies, banks, and institutions. The deployment of open banking across the sector provides customers with access to superior banking services as well as new and tailored financial solutions.
• Open banking encourages banks to give more personalized and relevant product offerings to clients by learning about their demographics, needs, and other trustworthy financial information, such as KYC documents.

Improved Customer Engagement to Create Lucrative Market Opportunities

• The banking and financial organization develops its own application programming interfaces (APIs) that enable third companies and banks to create innovative services, resulting in increased financial revenue.
• Additionally, an open banking application platform invites clients to engagae with their financial data in novel ways. Furthermore, banks are recognizing the value of open banking and improving offerings that provide user experience and engagement.
• Further, banks are identifying the potential of open banking and improving services offering customer engagement and customer experience. This in turn is expected to boost the open banking market growth.

Open Banking Market Report Segmentation Analysis

The key segment that contributed to the derivation of the open banking market analysis is type.

• The app market segment dominated the market in 2023. The supremacy can be attributed to the widespread availability of smartphones worldwide. The segment's growth is predicted to be driven by the increasing adoption of mobile applications for a variety of reasons, including purchasing and selling products and services.
• The banking and capital markets segment dominated the market in 2023. The increased requirement for better financial management among millennials is projected to fuel the segment's expansion. People's shift away from traditional investment methods and toward smart investment solutions is projected to provide profitable opportunities for the market.

Open Banking Market Share Analysis By Geography

• The scope of the open banking market is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America.
• Asia Pacific is expected to expand at a fastest CAGR during the projection period. The regional market's growth can be ascribed to increased knowledge of the benefits of open banking systems in countries such as China, India, and Japan. The rapid development of digital payment services in Asia Pacific is also likely to boost the regional industry. For example, in August 2021, the online payment network Google Pay completed one billion transactions in India.

MARKET PLAYERS

Open Banking Market Report Scope

Open Banking Market News and Recent Developments

Companies adopt inorganic and organic strategies such as mergers and acquisitions in the open banking market. Some of the recent key market developments are listed below:

• In July 2022, Finastra and HSBC collaborated together to work on API-driven connectivity to offer banking as a service FX capability for mid-sized banks. [Source: Finastra, Company Website]

Open Banking Market Report Coverage & Deliverables

The open banking market forecast is estimated based on various secondary and primary research findings, such as key company publications, association data, and databases. The market report "Open Banking Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering below areas-

• Market size & forecast at global, regional, and country levels for all the key market segments covered under the scope.
• Market dynamics such as drivers, restraints, and key opportunities.
• Key future trends.
• Detailed PEST & SWOT analysis
• Global and regional market analysis covering key market trends, key players, regulations, and recent market developments.
• Industry landscape and competition analysis covering market concentration, heat map analysis, key players, and recent developments.
• Detailed company profiles.

Open Banking Report Scope