Open Banking Market 2024 Future Analysis, Demand by Regions and Opportunities with Challenges 2034

The open banking sector is anticipated to be worth US$ 22,160 million in 2024. The demand for open banking is expected to increase from 2024 to 2034 at a CAGR of 19.7%. By 2034, the market value is expected to reach $133.5 billion.

The increased demand for open banking is driven by consumers’ desire for greater control and openness over their financial data. Customers may use open banking to securely connect their bank accounts to third-party financial applications and services, allowing them to better manage their finances.

The need for advancement in new services and models to reduce transactional costs and implement budgeting tools is likely to present opportunities. By opening up access to financial data through secure APIs, open banking is enabling a new wave of fintech start-ups to emerge and offer customers innovative new products and services. By allowing different banks and financial institutions to share data more easily, open banking reduces the need for redundant systems and processes, which can help lower costs and improve overall efficiency.

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Along with open banking, a surge in wealth tech has also been witnessed in emerging economies. For instance, Monzo, a foreign exchange company, launched an investment feature in 2023 due to increasing demand for investment products that are accessible to consumers.

“Collaboration between financial institutions and fintech companies can enhance the speed at which individuals and SMEs can manage their money. Moreover, digital financial service-based companies can focus on providing sophisticated products and services that can reduce fraud and allow better-informed decisions on cost of living, “says an analyst at FMI.

Key Takeaways from the Open Banking Market

• The open banking market is estimated to register a CAGR of 19.7%, with a valuation of US$ 133.5 billion by 2034.
• The open banking platforms segment is anticipated to dominate the market by registering a 70.2% share in 2024.
• With a 19.9% share, the retail & commercials banks are likely to drive the market in 2024.
• The market for open banking is likely to register a growth of 23.2% in Australia through 2034.
• The demand for open banking is estimated to record a healthy CAGR of 16.5% in the United States from 2024 to 2034.
• In Japan and China, the open banking industry is anticipated to increase at CAGRs of 20.9% and 20.2% through 2034.

Competitive Landscape

As open banking regulations and APIs gain traction, a new ecosystem of fintech companies and traditional banking institutions emerge. As the market matures, several firms soon adapt and compete to gain a significant share and provide novel solutions to consumers. Some prominent companies in the market are Banco Bilbao Vizcaya Argentaria, S.A., Crédit Agricole, Citygroup, Inc., and HSBC Bank plc.

PCI Pal, an open banking payment solution provider, announced the release of Pay By Bank, an open banking solution for contact centers, in 2022. This digital option allows consumers and businesses to lower transaction costs while offering prompt reimbursements. Moreover, the user can share their financial data securely with the third-party provider, increasing the competition among providers.