The open banking market will expand at a CAGR of 22% by 2032

According to a recent report, the global open banking market will be worth US$23.5 billion in 2023 and is expected to reach US$130.2 billion by the end of 2032. global market insights corp..

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Driven by technological innovations in API and data integration and the growing demand for personalized and convenient financial services, the open banking market size will show a compound annual growth rate of 22% between 2024 and 2032. Advanced APIs enable seamless integration between banks and fintechs, enhancing the accessibility and functionality of financial services. Additionally, consumers are increasingly seeking tailored and user-friendly solutions, driving financial institutions to adopt open banking. These technological breakthroughs and consumer preferences are driving market expansion as they help improve service delivery and more personalized financial experiences.

For example, in May 2024, Experian launched a new open banking solution designed to enhance lending decisions and increase credit access, specifically targeting the approximately 106 million thin-document and credit-invisible consumers in the United States, thereby facilitating greater financial inclusion. This means open banking is becoming increasingly important in promoting financial inclusion and addressing credit access gaps. Such solutions are likely to drive market growth and innovation globally by enhancing data-driven lending and facilitating broader financial participation.

Open Banking is categorized based on financial services, deployment models, distribution channels and regions.

Payments remain an important application area

Due to its key role in improving transaction efficiency and user experience, the open banking market in payments will undergo significant upgrades by 2032. As digital and mobile payment solutions gain traction, open banking facilitates seamless and secure transactions by integrating multiple payment methods and processing them in real-time. This shift is driven by consumer demand for convenience and business demands for streamlined financial operations. With the advancement of payment technology and the increasing emphasis on security and accessibility, the payments space will occupy a considerable market share.

Growing demand for hybrid SMEs

The hybrid SME segment will see substantial growth through 2032, thanks to its unique blend of traditional and digital banking needs. These businesses require flexible financial solutions that integrate in-person and online services to streamline operations and enhance customer engagement. Open Banking facilitates this by providing customized financial products, real-time data insights and efficient transaction processing. As hybrid SMEs increasingly seek to optimize their financial management and access innovative banking services, their market share will grow significantly.

Asia Pacific will gain significant share

Asia Pacific open banking market will hold a significant share by 2032 due to rapid advancement in digitization, growing fintech innovation, and increasing popularity of mobile and online banking services. The region’s diverse and dynamic financial landscape, coupled with a supportive regulatory framework and high demand for enhanced financial services, is driving significant growth. This trend is further fueled by the growing number of tech-savvy consumers and businesses seeking seamless, integrated financial solutions, making Asia Pacific a significant contributor to the market outlook.

leading key figures

Key players in the open banking market include Accenture, Capgemini, Virtusa Corp., F5, Inc., MuleSoft (Salesforce), Yodlee (Envestnet), Plaid, Tink, Finicity (Mastercard), TrueLayer, Token.io.

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