As stated in our extensive report, providing insights on products and procedures the Global Open Banking Market accounted for USD 10.39 Billion in 2021.
Banks are considered to be the prime source of individuals’ personal data and assets. Recently, a paradigm shift has seen customers take ownership and consent to handle their data at institutions of their choice. Customers are increasingly relying on digital banking services to have a “doorstep banking” experience. Regulatory impetus coupled with a maturing FinTech ecosystem has caused digital banking services to garner mainstream appeal. For instance, in India, the introduction and adoption of UPI by NPCI has resulted in an exponential increase in online payment adoption and redefined customer sentiment.
Furthermore, Open Banking services are secured by Application Program Interface (API) that helps for securing payments. In addition, this financial data is shared between the third parties and users making it more users friendly. An open API offers security to private data of customers, such as a third party’s service providers collecting user’s transaction history and patterns, which provides easy access to openly available data such as a bank’s product offerings. Thus, the financial information collected from a customer is utilized in developing more advanced applications which are aimed at improving the consumer experience associated with the use of financial services.
With the onset of COVID-19, there has been a huge shift towards digitalization. Quicker and safe transactions are carried out using online and Open Banking techniques during this pandemic, thus boosting the demand for Open Banking. Major banking companies are encouraging customers to use Open Banking which in turn is reducing their cost and time. Thus, the pandemic has made huge advancements and developments in the Open Banking system. These are a few of the factors that benefited the Open Banking Market in the COVID-19 pandemic.
Asia Pacific is expected to grow at the fastest Compound Annual Growth Rate (CAGR) in coming years owing to high demand for Open Banking among the population.Countries such as the U.S. & Canada are considered to be the most developed countries in the field ofbanking technology. These are a few of the reasons is expected to grow in the coming years.
Developing economies like India, China, and the Middle East are considered to gain huge opportunities in the adoption of Open Banking. North America held the largest share of the Open Banking Market in 2021, followed by Europe and the Asia Pacific.In major parts of the world, the market is still growing owing to insufficient funds, lack of awareness, underdeveloped IT infrastructure, and social constraints.
Major players of the Open Banking market include RLDatix (Canada), Riskonnect Inc. (Georgia), Verge Health (US), Clarity Group Inc. (US), The Patient Safety Company (Netherlands), RiskQual Technologies (US), Quantros Inc. (US), Conduent Inc. (US), Prista Corporation (US), Smartgate Solutions Ltd. (UK)..