According to the report published by Allied Market Research, the global Open Banking market generated $7.29 billion in 2018, and is expected to reach $43.15 billion by 2026, growing at a CAGR of 24.4% from 2019 to 2026.
Rise in adoption of new applications and services in the banking sector, supportive government regulations, and enhanced customer engagement with Open Banking APIs drive the growth of the global Open Banking market. However, lack of awareness regarding Open Banking, data security, and management of security threats hinder the market growth. On the other hand, collaboration activities between fintech firms and banks are continuing to create new opportunities in the industry.
The banking and capital markets segment contributed to more than half of the total share of the global Open Banking market in 2018, and is expected to maintain its lead share in terms of revenue during the forecast period. However, the payments segment is projected to witness the largest CAGR of 27.3% from 2019 to 2026. The research also discusses segments such as digital currencies and value-added services.
Based on distribution channels, the app market segment accounted for the highest market share with more than two-fifths of the total share in 2018, and is expected to continue its highest distribution during the forecast period. However, the distributors segment is expected to portray the highest growth rate with a CAGR of 27.0% from 2019 to 2026. The report also analyzes segments including bank channel and aggregators.
Geographically, North America held the highest share based on revenue, accounting for more than two-thirds of the global open banking market share in 2018, and is estimated to maintain its lead position throughout the forecast period. However, Europe is estimated to witness the highest CAGR of 24.0% from 2019 to 2026. The report also offers a detailed analysis of Asia Pacific and LATAM.
- Moneybox app announces Open Banking merger with Santander
- VibePay launches account-to-account payment services for SME’s
- New world innovation: Open Banking turns three
- Komerční Banka selects Temenos to enhance its digital banking offering
- Insight: Head of products, BBVA Open Platform, on the future of payments, CX and Banking as a Service.