Open banking Market Set to Grow with Steady CAGR of 25.47 % by 2030, On Rising Government Support

Written by MarkNtel Advisors » Updated on: November 13th, 2024

As per the analytical report published by Markntel Advisors (one of the leading consulting, data analytics, and market research firms) i.e., Global Open Banking Market Research Report: Forecast (2025-2030), the market is expected to grow significantly in the coming years. According to the report, the Global Open Banking Market size was valued at around USD 22.31 billion in 2023 and is estimated to grow at a CAGR of about 25.47% during the forecast period, i.e., 2024-30. The market growth is further driven by the rising interference of the government sector to uplift the industry growth. Countries such as the UK, Mexico, and the US have actively adopted open banking services, facilitating cross-border financial transactions, and enriching global trade relationships. These government mandatory regulations compel the bank to open up their closely held financial data to third-party providers, further encouraging industrial growth and expansion.

What Are the Prominent Trends Augmenting Open Banking Industry Expansion?

The revolution of the onboarding process through open banking is evolving as a vital trend in the global market. The major reason behind the adoption of open banking by financial institutions is it facilitates simplified onboarding, alleviates customer stress by providing seamless access to user data, and also eliminates the need for manual input. This rising trend led to accelerating the growth of the open banking industry.

Who Are the Main Competitors Driving the Open Banking Market Forward?

Ley players in the Open Banking Industry include Finleap, Revolut Ltd., Tink AB, Salesforce Inc., Worldline S.A., Tata Consultancy Services Limited, Capgemini, Oracle, Finicity (Mastercard), Jack Henry & Associates, Inc., Finastra, Global Payments, Virtusa Corp, Plaid Inc, etc.

What Are the Key Segments Within the Global Open Banking Market?

) By Service: Retail Banking, [Aggregation & Financial Management, Credit Risk Decisioning, Payments, Origination & Onboarding, Others], Corporate Banking [Corporate Treasury, Financial Management, Credit Decisioning, Payments, Value Added Services, Others], Capital Markets, Others
) By Distribution Channel: Bank Channel, App Market, Distributors, and Aggregators
) By Deployment: On-premise, and Cloud, Hybrid
) By Region: North America, South America, Europe, The Middle East & Africa, and Asia-Pacific.

Europe’s Role as the Foremost Player in the Open Banking Market

Europe comprises prominent companies such as the Netherlands, Switzerland, Spain, etc., that demonstrate outstanding performance in digital evolution. Additionally, the UK, and France, stand out as a leader in API standardization, laying a strong foundation for Open banking initiatives. This standardized approach aids seamless integration and therefore contributes to the growth of the industry.

What Is the Open Banking Market Definition?

Open Banking is a system that enables external financial services to securely retrieve and utilize information from a user's bank account. This sharing of data is facilitated through standardized interfaces, or APIs, which ensure a secure and controlled exchange of information between banks and authorized third-party providers. This practice is designed to promote innovation, competition, and the development of new financial services by allowing external entities to build upon the existing infrastructure and offer more tailored and innovative solutions to consumers.

Frequently Asked Questions (FAQs)-

What is the expected CAGR value of the Open Banking Market during the forecast period?
What are the trends influencing the current scenario of the Open Banking market?
What key factors would propel and impede the Open Banking industry across the Globe?
How has the industry been evolving in terms of geography & Open Banking adoption?
Which region will dominate the global Open Banking by 2030?
Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?
Which is the Leading distribution segment in the Open Banking market?

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