A three-pronged approach was followed for deducing the open banking market estimates and forecasts. The process has three steps: information procurement, analysis, and validation. The whole process is cyclical, and steps repeat until the estimates are validated. The three steps are explained in detail below:
Information procurement: Information procurement is one of the most extensive and important stages in our research process, and quality data is critical for accurate analysis. We followed a multi-channel data collection process for open banking market to gather the most reliable and current information possible.
Analysis: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilized different methods of open banking market data depending on the type of information we’re trying to uncover in our research.
Market Research Efforts: Bottom-up Approach for estimating and forecasting demand size and opportunity, top-down Approach for new product forecasting and penetration, and combined approach of both Bottom-up and Top-down for full coverage analysis.
Value-Chain-Based Sizing & Forecasting: Supply-side estimates for understanding potential revenue through competitive benchmarking, forecasting, and penetration modeling.
Demand-side estimates for identifying parent and ancillary markets, segment modeling, and heuristic forecasting.
Qualitative Functional Deployment (QFD) Modelling for market share assessment.
Market formulation and validation: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilize different methods of data analysis depending on the type of information we’re trying to uncover in our research.
Market Formulation: This step involves the finalization of market numbers. This step on an internal level is designed to manage outputs from the Data Analysis step.
Data Normalization: The final market estimates and forecasts are then aligned and sent to industry experts, in-panel quality control managers for validation.
This step also entails the finalization of the report scope and data representation pattern.
Validation: The process entails multiple levels of validation. All these steps run in parallel, and the study is forwarded for publishing only if all three levels render validated results.
The open banking market was categorized into four segments, namely services (Banking & Capital Markets, Payments, Digital Currencies, Value Added Services), deployment (Cloud, On-premise), distribution channel (Bank Channels, App Markets, Distributors, Aggregators), and regions (North America, Europe, Asia Pacific, Latin America, Middle East & Africa).
The open banking market was segmented into services, deployment, distribution channel, and regions. The demand at a segment level was deduced using a funnel method. Concepts like the TAM, SAM, SOM, etc., were put into practice to understand the demand. We at GVR deploy three methods to deduce market estimates and determine forecasts. These methods are explained below:
Demand estimation of each product across countries/regions summed up to from the total market.
Variable analysis for demand forecast.
Demand estimation via analyzing paid database, and company financials either via annual reports or paid database.
Primary interviews for data revalidation and insight collection.
Used extensively for new product forecasting or analyzing penetration levels.
Tool used invoice product flow and penetration models Use of regression multi-variant analysis for forecasting Involves extensive use of paid and public databases.
Primary interviews and vendor-based primary research for variable impact analysis.
The open banking market was analyzed at a regional level. The global was divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, keeping in focus variables like consumption patterns, export-import regulations, consumer expectations, etc. These regions were further divided into fifteen countries, namely, the U.S.; Canada; Germany; the UK; France; China; India; Japan; South Korea; Australia; Brazil; Mexico; The Kingdom Of Saudi Arabia; Kingdom of Bahrain; South Africa.
All three above-mentioned market research methodologies were applied to arrive at regional-level conclusions. The regions were then summed up to form the global market.
The open banking market was analyzed via companies operating in the sector. Analyzing these companies and cross-referencing them to the demand equation helped us validate our assumptions and conclusions. Key market players analyzed include:
Banco Bilbao Vizcaya Argentaria, S.A. - Banco Bilbao Vizcaya Argentaria, S.A. is a provider of financial and commercial banking services. It offers a range of services such as retail banking, private banking, business banking, corporate banking, investment banking, and consultancy in financial & risk management. The company’s solutions encompass treasury management, normative API, and a digital ecosystem. Operating in 25 countries, Banco Bilbao Vizcaya Argentaria, S.A. caters to over 80 million customers, which include individuals, small- & medium-sized enterprises, institutional investors, and large corporations. Its team comprises professionals from various fields including finance, law, data science, development, engineering, and design.
Crédit Agricole CIB - Crédit Agricole CIB is a firm that excels in the fields of investment, corporate banking, and capital markets. Their primary aim is to provide a variety of financial advisory services. They cater to corporate and institutional clients by offering a multitude of services, which encompass capital market activities, structured finance, investment banking, commercial banking, and international trade. Their suite of solutions comprises global investment banking, global market, Islamic banking, sustainable banking, private investment banking, debt optimization and distribution, structured finance, and international trade and transactional banking. Crédit Agricole CIB functions as the corporate and investment banking arm of the Crédit Agricole Group. The bank has a widespread network that covers numerous countries in Europe, the Americas, Asia, and the Middle East. Their team is composed of approximately 800 interns, 300 individuals in work-study programs, and 65 international corporate volunteers.
DemystData, Ltd. - DemystData, Ltd. is a private firm that develops financial software with a focus on areas such as analytics, alternative data, credit scoring, big data, KYC, and data governance. They provide a cloud-based data management platform that features a unified interface for data integration, centralization, and structuring. The platform is engineered to enhance real-time client interactions, including marketing, cross-selling, and servicing. This allows financial institutions to access and analyze data from a single dashboard. DemystData, Ltd. provides a variety of solutions such as KYB compliance, application prefill, business risk assessment, contact data enrichment, credit bureau integration, portfolio monitoring, and lead targeting, catering to the financial services and insurance sectors. The company operates in various countries including the U.S., Australia, Canada, Austria, Poland, and Singapore. They assert to be SOC 2 Type II certified and adhere to regulations like GDPR, CCPA, FCRA, and GLBA.
Finleap Connect - Finleap Connect operates as an autonomous open banking platform that enables banks, fintech firms, and other enterprises to tap into the future of financial services by examining client transactions and interaction patterns. Through its extensive platform, Finleap Connect grants clients legal access to customers’ financial transaction data, facilitates data analysis using analytics tools, delivers digital banking services, and supplies top-tier digital financial services and products to customers. The platform ultimately assists businesses in delivering highly innovative financial services and presenting genuine added value to their end clients. Finleap Connect’s open banking product suite encompasses account aggregation, payment initiative service, and categorization.
Finastra - Finastra is a company that specializes in financial software solutions. It offers a variety of digital banking services, including client consultation, knowledge services, managed services, support services, and collaborative design engagement, implementation, and delivery. Finastra serves as a bridge, connecting financial institutions with marketplaces, partners, and fintech platforms. Its platform is utilized in various sectors such as retail & corporate banking, lending, treasury, investment management, and capital markets & enterprise risk management, among others. Finastra’s open banking solutions encompass digital banking, US digital & retail banking, and international digital & retail banking.
Formfree Holdings Corporation - FormFree Holdings Corporation provides a unique technology that could assist creditors in comprehending a person’s willingness and ability to pay. Their products, such as AccountChek and Passport, aid lenders in assessing an individual’s true payment capacity, promoting a more inclusive credit environment. The company’s automated asset verification solutions are designed to mitigate fraud. Their offerings also encompass pre-closing verification and a residual income knowledge index. The company’s automated asset verification services assist financial institutions in evaluating a consumer’s loan repayment ability and in reducing closing times by digitizing the financial verification process. The company boasts of having verified loans worth USD 3 trillion and having 48,000 FI connections. In addition, the company engages in partnerships and collaborations to maintain a competitive edge over its competitors.
Jack Henry & Associates, Inc. - Jack Henry & Associates, Inc. offers both in-house and outsourced software systems, primarily for the established players in the financial services sector. The company’s services encompass digital banking, payments, operations, information security & technology, lending, financial crime & fraud risk management, commercial banking, customer & member relationships management, and financial health management. Its client base consists of banks, credit unions, de Novos, and fintech companies. The company purports to cater to 1,000 banks and 800 credit unions. It has dedicated teams for various functions such as team overview, team operations, data center operations, implementation & support, information technology, marketing & sales, and project management.
Mambu - Mambu offers a customizable SaaS platform that could potentially assist financial institutions in swiftly building, deploying, and servicing any loan or deposit portfolio, thereby gaining a substantial competitive edge. Mambu’s platform fuels digital financial services and offers adaptable and innovative banking structures to address market opportunities cost-effectively and flexibly. This allows microfinance institutions and other financial entrepreneurs to provide banking services easily and conveniently to individuals. The company also offers professional services, such as enablement and advisory. Mambu’s reach extends across 65 countries on six continents. The company serves approximately 230 customers and over 75 million end consumers. Mambu collaborates with its customers to continually enhance and innovate the operations of financial institutions. The company boasts of having a Net Promoter Score (NPS) that is four times higher than other providers.
MineralTree (Global Payments) - MineralTree provides a cloud-based software solution that enhances and automates every step of the invoice process, tailored to fit existing workflows and specific business needs. The software simplifies payment procedures by offering multiple payment methods and integrating with various popular accounting software, enabling users to automate their invoice-to-pay processes, simplify payments, and maintain client satisfaction. MineralTree’s offerings, including TotalAP, TotalPay, Virtual Cards, and ERP integration, are designed for nonprofits and incumbents across various sectors such as healthcare, food & beverages, education, and retail. These solutions have the potential to transform accounts payable (AP) into a source of profit, boost efficiency, manage outgoing cash flow, and deter fraud.
NCR Corporation - NCR Corporation, previously known as National Cash Register Co., is a software company that is publicly traded. It specializes in the production of ATMs, Point-of-Sale (POS) terminals, check processing systems, barcode scanners, and more. The company provides a range of services including managed and professional services, consulting, and technology services. Its client base is diverse, encompassing banks, credit unions, restaurants, and retailers. NCR’s offerings include digital-first software and services tailored for banks, merchants, and restaurants, as well as payment processing and networks, multi-vendor connected device services, and other self-service technologies. In addition to its technology solutions, NCR also resells third-party networking solutions and provides related services for the telecommunications and technology sectors. The company operates in 160 countries and distributes its solutions in over 140 countries. NCR is committed to promoting technological advancements by integrating customer activities from the back office to the front end. It also strives to unify its clients’ physical and digital operations by helping them connect with their customers.
Supply Side Estimates
Company revenue estimation via referring to annual reports, investor presentations, and Hoover’s.
Segment revenue determination via variable analysis and penetration modeling.
Competitive benchmarking to identify market leaders and their collective revenue shares.
Forecasting via analyzing commercialization rates, pipelines, market initiatives, distribution networks, etc.
Demand side estimates
Identifying parent markets and ancillary markets
Segment penetration analysis to obtain pertinent
Heuristic forecasting with the help of subject matter experts
Forecasting via variable analysis
Understanding market dynamics (in terms of drivers, restraints, & opportunities) in the countries.
Understanding trends & variables in the individual countries & their impact on growth and using analytical tools to provide high-level insights into the market dynamics and the associated growth pattern.
Understanding market estimates and forecasts (with the base year as 2022, historic information from 2017 to 2021, and forecast from 2023 to 2030). Regional estimates & forecasts for each category are available and are summed up to form the global market estimates.
The report provides market value for the base year 2022 and a yearly forecast till 2030 in terms of revenue/volume or both. The market for each of the segment outlooks has been provided on region & country basis for the above-mentioned forecast period.
The key industry dynamics, major technological trends, and application markets are evaluated to understand their impact on the demand for the forecast period. The growth rates were estimated using correlation, regression, and time-series analysis.
We have used the bottom-up approach for market sizing, analyzing key regional markets, dynamics, & trends for various products and end-users. The total market has been estimated by integrating the country markets.
All market estimates and forecasts have been validated through primary interviews with the key industry participants.
Inflation has not been accounted for to estimate and forecast the market.
Numbers may not add up due to rounding off.
Europe consists of EU-8, Central & Eastern Europe, along with the Commonwealth of Independent States (CIS).
Asia Pacific includes South Asia, East Asia, Southeast Asia, and Oceania (Australia & New Zealand).
Latin America includes Central American countries and the South American continent
Middle East includes Western Asia (as assigned by the UN Statistics Division) and the African continent.
GVR strives to procure the latest and unique information for reports directly from industry experts, which gives it a competitive edge. Quality is of utmost importance to us, therefore every year we focus on increasing our experts’ panel. Primary interviews are one of the critical steps in identifying recent market trends and scenarios. This process enables us to justify and validate our market estimates and forecasts to our clients. With more than 8,000 reports in our database, we have connected with some key opinion leaders across various domains, including healthcare, technology, consumer goods, and the chemical sector. Our process starts with identifying the right platform for a particular type of report, i.e., emails, LinkedIn, seminars, or telephonic conversation, as every report is unique and requires a differentiated approach.
We send out questionnaires to different experts from various regions/ countries, which is dependent on the following factors:
Report/Market scope: If the market study is global, we send questionnaires to industry experts across various regions, including North America, Europe, Asia Pacific, Latin America, and MEA.
Market Penetration: If the market is driven by technological advancements, population density, disease prevalence, or other factors, we identify experts and send out questionnaires based on region or country dominance.
The time to start receiving responses from industry experts varies based on how niche or well-penetrated the market is. Our reports include a detailed chapter on the KoL opinion section, which helps our clients understand the perspective of experts already in the market space.
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