The global open banking market size is expected to reach USD 135.17 billion by 2030, growing at a CAGR of 27.2% from 2023 to 2030, according to a new study conducted by Grand View Research, Inc. The global open banking market is expanding as a result of favorable government legislation, improved overall customer involvement made possible by open banking APIs, and an increase in the adoption of innovative applications and services. In addition, the relocation in the focus of retail banks toward consolidated technological enhancements also bodes well with the market’s growth.
Key industry players are aggressively investing in offering enhanced services to their customers. For instance, in June 2022, Mastercard announced its latest open banking feature, named Pay by link, through its banking pioneer in Europe, Aiia. This feature is expected to eliminate needless payment stages for companies from any sector by developing a straightforward link that enables clients to pay instantaneously in any situation. It is closely related to Mastercard's open banking agenda, which seeks to usher in a new era of choice, convenience, and personalization in a secure manner.
Increased investment in the open banking space by prominent players is expected to drive market growth over the forecast period. For instance, Visa, Inc. purchased Tink in June 2021 for USD 2.15 billion. The acquisition is anticipated to hasten the adoption of open banking in Europe through the provision of a reliable and secure platform for innovation. As a result, consumers have more control over their finances, including money management and financial goals.
The outbreak of the COVID-19 pandemic is expected to play a vital role in driving the growth of the open banking market over the forecast period. Since the pandemic, the banking industry has been continuously evolving to improve the customer experience and ease the process of banking for consumers. In addition, the rapid adoption of digitalization is expected to create a positive outlook for the market.
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The banking & capital markets segment dominated the market in 2022. The changing investment needs of the new age population are expected to propel segment growth. People are looking for more flexible and worthy investment options offered through advanced platforms.
The cloud segment is anticipated to witness the fastest growth owing to the increased adoption of cloud technology across the banking sector. Banks are leveraging the benefits of open banking by implementing strategic cloud solutions. As open banking evolves, the cloud is projected to become a critical technology in the banking sector.
The app markets segment dominated the market in 2022. The segment growth can be attributed to the rising utilization of smartphones and applications for numerous purposes, such as mobile banking. Open banking applications leverage APIs to provide various services, such as rapid payments, a financial dashboard displaying accounts from several banks, proof of income, credit status verification, and money-saving advice to customers.
The Asia Pacific regional market is anticipated to witness the fastest growth over the forecast period. The growing technological awareness in developing countries of the region is expected to play a decisive role in driving the growth of the regional market. Moreover, the Asia Pacific region is portraying an increased willingness of customers to share personal data in exchange for more customer-tailored services.
Grand View Research has segmented the global open banking market based on services, deployment, distribution channel, and region.
Open Banking Services Outlook (Revenue, USD Million, 2017 - 2030)
Banking & Capital Markets
Value Added Devices
Open Banking Deployment Outlook (Revenue, USD Million, 2017 - 2030)
Open Banking Distribution Channel Outlook (Revenue, USD Million, 2017 - 2030)
Open Banking Regional Outlook (Revenue, USD Million, 2017 - 2030)
Middle East & Africa (MEA)
List of Key Players of Open Banking Market
Banco Bilbao Vizcaya Argentaria, S.A.
FormFree Holdings Corporation
Jack Henry & Associates, Inc.
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