Open Banking Systems Market cover

Open Banking Systems Market

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Author:

Swarup Sahu

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Shruti Bhat

Open Banking Systems Market Outlook 2031

The global open banking systems market size was valued at USD 20.79 Billion in 2022 and is anticipated to reach USD 127.76 Billion by 2031, expanding at a CAGR of 22.3% during the forecast period, 2023 – 2031. The growth of the market is attributed to the exponential shift towards consolidated technological improvement from independent technology projects of retail banks.

Open banking is additionally known as open bank data. Open banking is managing an account benefit in which the bank account information is shared through a protected open application programming interface (APIs) to third-party administration suppliers.

Open Banking Systems Market Outlook

These APIs provide a secure way to share financial data between two parties. Besides, data generated through API is utilized by banks and third party organizations to plan applications and administrations, which are advertised to the client. For the consumer, open banking provides frictionless commerce, more choices, and better service.

The COVID-19 pandemic outbreak has brought a positive impact on the market. During the pandemic lockdown imposed by government bodies increased the demand of contactless payment as well and payments through the use of pin and chip machines also increased. Furthermore, many companies also came up with new innovative solutions for open banking system during a pandemic, which lead to an increase in demand of open banking.

Open Banking Systems Market Trends, Drivers, Restraints, and Opportunities

  • Rising use of online platform for payments across the globe is one of the key factor driving the market growth.
  • Increasing advantages of an open banking platform that are beneficial to bank, consumers, and businesses is projected to drive the market expansion during the forecast period.
  • Growing concern about data security acts as a major challenge that can restrict the market growth in the coming years.
  • Escalating cases of online financial frauds can hamper the market growth during the projected timeline.
  • Using big data analytics and Artificial intelligence (AI) for more personalized open baking solutions is projected to create significant growth opportunities for the market.

Scope of Open Banking Systems Market Report

The report on the global open banking systems market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report

Attributes

Details

Report Title

Open Banking Systems Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast

Base Year

2022

Historic Data

2016–2021

Forecast Period

2023–2031

Segmentation

Service Types (Information Services, Transactional Services, and Communicative Services) and Distribution Channels (Distributors, Bank Channels, Aggregators, and App Markets)

Regional Scope

Asia Pacific, North America, Latin America, Europe, and Middle East & Africa

Report Coverage

Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast

Key Players Covered in the Report

JackHenry & Associates, Inc.; DemystData; FinGenius; Malauzai Software Inc.; MineralTree, Inc.; Accern Corp.; D3 Technology, Inc.; Figo GmbH; FormFree Holdings Corp.; and Mambu GmbH

Open Banking Systems Market Segment Insights

Cash management increases the transactional segment market share

On the basis of service types, the global open banking systems market is divided into information services, transactional services, and communicative services. The transactional service segment is estimated to account for a significant market share during the forecast period attributed to the rising adoption of transactional services by small & medium business, financial institutes, and government agencies for cash management.

Additionally, rise in use of online platform for transactions and surge in accessibility of internet across the globe, which presents a major factor driving the segment. However, the information service segment is anticipated to grow at a high CAGR during the projected period attributed to the increased use of information service to provide customized account information to consumers.

Open Bank System Market Service Types Segmentation

App markets segment is estimated to expand at robust growth rate

Based on distribution channels, the market is fragmented into, bank channels, aggregators, and app markets. The app markets segment is estimated to expand at robust growth rate during the forecast period owing to increase in adoption of new applications, which help customers to make purchases related to services and products.

On the other hand, the bank channels segment is projected to expand at a considerable CAGR during the forecast period attributed to the crowdsourcing of new technologies and use of API, which can be utilized by third-party developers to develop applications and services.

Open Banking Systems Market Distribution Channels Segmentation

Regional Analysis

In terms of region, the global open banking systems market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to constitute a key share of the market during the projected period owing to banking institutions in the region are making aggressive investments in developing APIs.

However, the Asia Pacific market is anticipated to grow at a rapid pace during the forecast period due to the increasing adoption of open banking systems by the emerging economies in the region.

Open Banking Systems Market Region Segmentation

Segments

The global open banking systems market has been segmented on the basis of

Service Types

  • Information Services
  • Transactional Services
  • Communicative Services

Distribution Channels

  • Distributors
  • Bank Channels
  • Aggregators
  • App Markets

Regions

  • Asia Pacific
  • North America
  • Latin America
  • Europe
  • Middle East & Africa

Key Players

Competitive Landscape

Key players competing in the global open banking systems market are JackHenry & Associates, Inc.; DemystData; FinGenius; Malauzai Software Inc.; MineralTree, Inc.; Accern Corp.; D3 Technology, Inc.; Figo GmbH; FormFree Holdings Corp.; and Mambu GmbH.

Companies are focusing on investment in R&D for the development of banking solutions based on APIs that can be operated outside the core business of the banks. Furthermore, companies are widely engaging in strategic partnership, merger & acquisition, new product launch, and collaborations to boost their market share and acquiring new buyers.For instance, 

  • In April 2020, HSBC Bank plc, a UK-based investment banking company. This company increased its investment in the use of AI for banking solutions. This investment was aimed to develop AI based techniques to manage financial crime risk, choose assets in which to invest, and analyze the data.

  • In June 2021, Tink AB a European open banking platform was acquired by Visa Inc., the U.S. based financial services company. The acquisition is aimed to provide dependable and secure platform for innovation and accelerate European open banking adoption.

Open Banking Systems Market Key Players

1. Executive Summary
2. Assumptions and Acronyms Used
3. Research Methodology
4. Open Banking Systems Market Overview
  4.1. Introduction
     4.1.1. Market Taxonomy
     4.1.2. Market Definition
  4.2. Macro-Economic Factors
     4.2.1. Industry Outlook
  4.3. Open Banking Systems Market Dynamics
     4.3.1. Market Drivers
     4.3.2. Market Restraints
     4.3.3. Opportunity
     4.3.4. Market Trends
  4.4. Open Banking Systems Market - Supply Chain
  4.5. Global Open Banking Systems Market Forecast
     4.5.1. Open Banking Systems Market Size (US$ Mn) and Y-o-Y Growth
     4.5.2. Open Banking Systems Market Size (000’ Units) and Y-o-Y Growth
     4.5.3. Open Banking Systems Market Absolute $ Opportunity
5. Global Open Banking Systems Market Analysis and Forecast by Region
  5.1. Market Trends
  5.2. Introduction
     5.2.1. Basis Point Share (BPS) Analysis by Region
     5.2.2. Y-o-Y Growth Projections by Region
  5.3. Open Banking Systems Market Size and Volume Forecast by Region
     5.3.1. North America
     5.3.2. Latin America
     5.3.3. Europe
     5.3.4. Asia Pacific
     5.3.5. Middle East and Africa (MEA)
  5.4. Absolute $ Opportunity Assessment by Region
  5.5. Market Attractiveness/Growth Potential Analysis by Region
  5.6. Global Open Banking Systems Demand Share Forecast, 2019-2026
6. North America Open Banking Systems Market Analysis and Forecast
  6.1. Introduction
     6.1.1. Basis Point Share (BPS) Analysis by Country
     6.1.2. Y-o-Y Growth Projections by Country
  6.2. North America Open Banking Systems Market Size and Volume Forecast by Country
     6.2.1. U.S.
     6.2.2. Canada
  6.3. Absolute $ Opportunity Assessment by Country
  6.4. Market Attractiveness/Growth Potential Analysis
     6.4.1. By Country
     6.4.2. By Product Type
     6.4.3. By Application
  6.5. North America Open Banking Systems Demand Share Forecast, 2019-2026
7. Latin America Open Banking Systems Market Analysis and Forecast
  7.1. Introduction
     7.1.1. Basis Point Share (BPS) Analysis by Country
     7.1.2. Y-o-Y Growth Projections by Country
     7.1.3. Latin America Average Pricing Analysis
  7.2. Latin America Open Banking Systems Market Size and Volume Forecast by Country
      7.2.1. Brazil
      7.2.2. Mexico
      7.2.3. Rest of Latin America
   7.3. Absolute $ Opportunity Assessment by Country
  7.4. Market Attractiveness/Growth Potential Analysis
     7.4.1. By Country
     7.4.2. By Product Type
     7.4.3. By Application
  7.5. Latin America Open Banking Systems Demand Share Forecast, 2019-2026
8. Europe Open Banking Systems Market Analysis and Forecast
  8.1. Introduction
     8.1.1. Basis Point Share (BPS) Analysis by Country
     8.1.2. Y-o-Y Growth Projections by Country
     8.1.3. Europe Average Pricing Analysis
  8.2. Europe Open Banking Systems Market Size and Volume Forecast by Country
     8.2.1. Germany
     8.2.2. France
     8.2.3. Italy
     8.2.4. U.K.
     8.2.5. Spain
     8.2.6. Russia
     8.2.7. Rest of Europe
  8.3. Absolute $ Opportunity Assessment by Country
  8.4. Market Attractiveness/Growth Potential Analysis
     8.4.1. By Country
     8.4.2. By Product Type
     8.4.3. By Application
  8.5. Europe Open Banking Systems Demand Share Forecast, 2019-2026
9. Asia Pacific Open Banking Systems Market Analysis and Forecast
  9.1. Introduction
     9.1.1. Basis Point Share (BPS) Analysis by Country
     9.1.2. Y-o-Y Growth Projections by Country
     9.1.3. Asia Pacific Average Pricing Analysis
  9.2. Asia Pacific Open Banking Systems Market Size and Volume Forecast by Country
     9.2.1. China
     9.2.2. Japan
     9.2.3. South Korea
     9.2.4. India
     9.2.5. Australia
     9.2.6. Rest of Asia Pacific (APAC)
  9.3. Absolute $ Opportunity Assessment by Country
  9.4. Market Attractiveness/Growth Potential Analysis
     9.4.1. By Country
     9.4.2. By Product Type
     9.4.3. By Application
  9.5. Asia Pacific Open Banking Systems Demand Share Forecast, 2019-2026
10. Middle East & Africa Open Banking Systems Market Analysis and Forecast
  10.1. Introduction
     10.1.1. Basis Point Share (BPS) Analysis by Country
     10.1.2. Y-o-Y Growth Projections by Country
     10.1.3. Middle East & Africa Average Pricing Analysis
  10.2. Middle East & Africa Open Banking Systems Market Size and Volume Forecast by Country
     10.2.1. Saudi Arabia
     10.2.2. South Africa
     10.2.3. UAE
     10.2.4. Rest of Middle East & Africa (MEA)
  10.3. Absolute $ Opportunity Assessment by Country
  10.4. Market Attractiveness/Growth Potential Analysis
     10.4.1. By Country
     10.4.2. By Product Type
     10.4.3. By Application
  10.5. Middle East & Africa Open Banking Systems Demand Share Forecast, 2019-2026
11. Competition Landscape
  11.1. Global Open Banking Systems Market: Market Share Analysis
  11.2. Open Banking Systems Distributors and Customers
  11.3. Open Banking Systems Market: Competitive Dashboard
  11.4. Company Profiles (Details: Overview, Financials, Developments, Strategy)
     11.4.1. JackHenry & Associates, Inc.
     11.4.2. DemystData
     11.4.3. FinGenius
     11.4.4. Malauzai Software Inc.
     11.4.5. MineralTree, Inc.
     11.4.6. Accern Corp.
     11.4.7. D3 Technology, Inc.

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