The latest report by IMARC Group, titled" Open Banking Market Report by Services (Banking and Capital Markets, Payments, Digital Currencies, Value Added Services), Deployment (Cloud-based, On-premises), Distribution Channel (Bank Channels, App Markets, Distributors, Aggregators), and Region 2024-2032", offers a comprehensive analysis of the industry, which comprises insights on the market. The global open banking market size reached US$ 25.6 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 113.3 Billion by 2032, exhibiting a growth rate (CAGR) of 17.46% during 2024-2032.

Factors Affecting the Growth of the Open Banking Industry:

• Regulatory Initiatives and Government Support:

The open banking industry is primarily driven by the regulatory initiatives from governments and financial authorities globally. In regions such as Europe, the implementation of the Revised Payment Services Directive (PSD2) has mandated banks to provide third-party providers access to consumer data, provided there is consumer consent. These regulations aim to foster competition, promote innovation, and enhance consumer choice in the financial sector by breaking the monopoly of traditional banks. Consequently, regulatory initiatives create a conducive environment for open banking, contributing to market growth.

• Rising Consumer Demand for Personalized Financial Services:

Consumer preferences are shifting toward more personalized and convenient banking experiences. With the increase of digital-native consumers, there is a rising expectation for seamless integration across financial services. Open banking enables individuals to access numerous financial services from different providers through a single platform, offering a more tailored experience. This trend is propelling financial institutions to adopt open banking to meet consumer expectations and stay competitive. By utilizing data sharing, banks and fintech companies can provide personalized financial products, better money management tools, and more transparent services, which are increasingly in demand among consumers.

• Advancements in Financial Technology:

The rapid development of financial technology (fintech) is significantly impacting the growth of the open banking industry. Fintech innovations, such as artificial intelligence (AI), machine learning (ML), and blockchain, have enabled new business models and services that utilize open banking capabilities. These technologies enhance data analysis, fraud detection, and customer service, making open banking more secure and efficient. Additionally, traditional banks are increasingly collaborating with fintech companies to integrate open banking solutions, expand their service offerings, and enhance consumer experience. Such collaborations foster innovation and propel the widespread adoption of open banking services, facilitating overall industry expansion.

For an in-depth analysis, you can request a sample copy of the report: https://www.imarcgroup.com/open-banking-market/requestsample

Leading Companies Operating in the Global Open Banking Market

• Banco Bilbao Vizcaya Argentaria S.A.
• Clarity Group Inc.
• Credit Agricole (SAS Rue La Boétie)
• Finastra (Misys International Limited)
• Finleap connect
• Jack Henry & Associates Inc
• Mambu
• NCR Corporation
• Nordigen Solution
• Revolut Ltd
• Riskonnect Inc.
• Societe Generale

Open Banking Market Report Segmentation:

By Services:

• Banking and Capital Markets
• Payments
• Digital Currencies
• Value Added Services

Banking and capital markets account for the largest market share as they are the primary sectors utilizing data sharing to enhance financial services, improve customer experiences, and offer numerous tailored products.

By Deployment:

• Cloud-based
• On-premises

On-premises dominates the market as it offers greater control over data security and compliance, which are essential for financial institutions handling sensitive consumer information.

By Distribution Channel:

• Bank Channels
• App Markets
• Distributors
• Aggregators

App markets hold the maximum number of market shares as they provide a centralized platform for consumers to access numerous financial services and apps, enhancing convenience and user experience.

Regional Insights:

• North America (United States, Canada)
• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa

Europe’s dominance in the open banking market is attributed to the strong supervisory frameworks in the region, such as the Payment Services Directive 2 (PSD2).

Global Open Banking Market Trends:

The open banking industry is significantly impacted by the rising emphasis on financial inclusion and accessibility. Open banking facilitates broader access to financial services by allowing third-party providers to create innovative products tailored to underserved and unbanked populations. This democratization of financial services has lessened the gap between traditional banking systems and consumers who previously lacked access to comprehensive financial tools. Additionally, the proliferation of smartphones and internet penetration globally has made it easier for consumers to engage with open banking platforms, further propelling market expansion. Furthermore, as businesses and consumers continue to embrace digital banking, the integration of open banking services into existing digital ecosystems has become a natural progression, propelling adoption. This shift enhances  consumer engagement and provides new revenue streams for banks and fintech companies, further contributing to industry growth.

If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.

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IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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