Open Banking Market size was valued at USD 28.9 billion in 2024 and is estimated to reach USD 320.4 billion by the end of 2037, expanding at a CAGR of 22.2% during the forecast timeline, i.e., 2025-2037. In 2025, the industry size of open banking is evaluated at USD 35.3 billion.
The open banking market is growing due to the rapid integration of IoT to digitalize transactions and offer innovative financial services. Businesses are aiming to improve operational efficiency by making payments easier and safer. For instance, in February 2023, Brankas launched the first multi-bank API of the APAC marketplace for instant account opening. The new banking suite, Account Opening API allows companies to offer fintech experiences to their users with embedded features such as interest-bearing and regulated savings accounts. This is creating a surge in businesses and consumers to adopt such technologies, increasing financial inclusion.
Banks and financial institutions are competitively investing in this sector to enable a wide range of personalized solutions for enhancing overall consumer experience and satisfaction. In addition, they are focusing on developing solutions to comply with the regulatory framework for seamless operations. For instance, in December 2024, Eviden collaborated with Ordo and ByzGen to launch a new open-banking solution to facilitate direct payments between businesses and customers. The FCA-regulated payment platform is designed to provide a lower-cost alternative to direct debit and standard credit, offering a secure, faster, and simple way to collect regular bill payments.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
22.2% |
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Base Year Market Size (2024) |
USD 28.9 billion |
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Forecast Year Market Size (2037) |
USD 320.4 billion |
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Regional Scope |
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Deployment Mode (On-premise, Cloud, Hybrid SME)
In open banking market, cloud segment is predicted to dominate revenue share of over 70% by 2037. The growing need for cloud-based solutions is driven by its cost-efficiency, flexibility, and scalability. These solutions can seamlessly handle the huge volume of transactions and data exchanges, perfectly fitting the characteristics of open banking ecosystems. In addition, the enhanced security in implementing these systems has helped organizations maintain compliance. For instance, in June 2024, Ozone API teamed with Tuum to comply with open banking regulations and commercialize open finance across the globe. The combination of cloud-native core banking solutions with the standards-based Open API platform can streamline end-to-end business processes.
Financial Services (Banking & Capital Markets, Payments, Digital Currencies, Value-added Services)
Based on financial services, the banking & capital markets segment is projected to capture a significant share of the open banking market by the end of 2037. The growing trend of implementing advanced infrastructure in data management and computing has propelled demand in this segment. The adoption of API-based platforms in streamlining operations has inflated the need for these services. Banks and other stakeholders are now increasingly using these solutions to broaden their offerings. For instance, in April 2024, Standard Chartered launched a new open banking marketplace to accelerate API adoption in both existing and prospective clients. The platform can reduce implementation time by streamlining business-to-bank collaboration in their digital transformation.
Our in-depth analysis of the global market includes the following segments:
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Deployment Model |
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Financial Services |
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Distribution Channel |
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North America Market Analysis
North America open banking market is expected to capture revenue share of around 31.4% by the end of 2037 due to regulatory changes and technological advancements. The reach of this region is touching new heights due to the widespread of innovative technologies such as cloud and artificial intelligence in banking. The growing emphasis on consumer-centric financial services has encouraged institutions to adopt these solutions. For instance, in February 2024, FIS Widens, a multinational company in America partnered with Banked to create new pay-by-bank solutions for businesses and consumers. Both companies aim to benefit their global and domestic clients by leveraging the power of open banking, APIs, and real-time payment services.
The U.S. is poised to foster advantages for the leaders in the open banking market to generate notable revenue. The government initiatives taken to improve the domestic regulatory framework for increasing transparency in banking are propelling adoption of cloud and API in this country. For instance, in October 2024, the Consumer Financial Protection Bureau finalized a rule to give consumers greater rights, privacy, and security over their personal financial data. It is implemented on financial institutions, credit card issuers, and other providers to enable consumers with the right to get free transition of financial data while switching to another provider.
Canada is more proactive in establishing the foundation of an open banking market in the country by issuing a well-structured approach toward this field. The government is playing a crucial part in promoting the adoption of open banking across the region by introducing guidelines about transparency and consumer protection. For instance, in April 2024, the Government of Canada released its plans to establish foundational elements of the Consumer-Driven Banking Framework. The publication mentioned all aspects of governance, scope, criteria, and process to set the technical standards. It further states its plans to engage with industry, federal regulators, federal agencies, and other stakeholders during development.
Europe Market Statistics
Europe is estimated to mark a significant growth in the open banking market during the forecast period due to the presence of financially active countries including the UK, Germany, and France. These developing marketplaces are one of the major drivers of this region which has been pioneers in implementing regulatory initiatives and creating a profit-making environment for participants. Authorities such as OBIE played a pivotal role in garnering an innovation-friendly ecosystem for open banking, inspiring global leaders to contribute to this progress. For instance, in June 2023, Mastercard launched an open banking innovation, Account Owner Verification in Europe to accelerate financial inclusion.
The UK open banking market is highly focused on delivering better financial products for both service providers and consumers by allowing domestic leaders to expand their territory. The authorities have taken the responsibility to leverage the country’s participation in this sector by strengthening the financial infrastructure. For instance, in July 2024, the Open Banking Excellence (OBE) launched a new program, Open Banking in a Box to solidify the country’s leading position in the global landscape. The proven program is made to offer regulators the best practices for fast-track open banking development.
Germany is fostering promising potential for growth in the open banking market by heavily implementing open APIs and a wide range of financial services. Many global leaders are contributing to such digital transformation by introducing new offerings and service terminals across the country. For instance, in October 2024, Banfico established its new subsidiary, Banfico Europe GmbH in Frankfurt, Germany to enhance local operations and drive innovation in regulatory solutions for banks across Europe. The branch aims to help regional banks achieve compliance with VoP and PSD3 to support its growing client base in this region.
Strings of the open banking market are expanding across emerging economies by introducing innovative financial solutions. Many rich-in-capital countries are showing interest in penetrating efficient digital ecosystems in their core banking framework, creating a profitable consumer base for global fintech innovators. For instance, in November 2024, Tarabut partnered with FLOOSS to establish a joint venture company, BENEFIT to introduce a first-of-its-kind centralized open banking authentication in Bahrain. The innovation-led joined forces aim to provide a seamless app-to-app experience to the customers by eliminating multiple authentication steps. Such key players include:
Author Credits: Parul Atri
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