Open Banking Systems Market Research Report By Deployment Model (Cloud-based, On-premises), By Application (Personal Finance Management, Business Banking, Lending and Credit Management, Payment Processing), By Data Type (Account Information, Transaction Data, Customer Data), By Vertical Industry (Banking & Financial Services, Retail & E-commerce, Government, Healthcare) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Industry Forecast to 2032

Global Open Banking Systems Market Overview:

Open Banking Systems Market Size was estimated at 5.31 (USD Billion) in 2022. The Open Banking Systems Market Industry is expected to grow from 7.12(USD Billion) in 2023 to 100.2 (USD Billion) by 2032. The Open Banking Systems Market CAGR (growth rate) is expected to be around 34.14% during the forecast period (2024 - 2032).

Key Open Banking Systems Market Trends Highlighted

Open banking systems are witnessing a surge in their global market presence. Key drivers fueling this growth include the increasing demand for digital banking services, the rise of fintech companies, and regulatory initiatives promoting data sharing and open competition. Opportunities in the open banking market lie in the expansion of digital payment options, the personalization of banking products, and the development of innovative financial services. Recent trends indicate a shift towards cloud-based open banking solutions, the incorporation of artificial intelligence for enhanced security and customer experience, and the emergence of open banking ecosystems that foster collaboration among financial institutions.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Open Banking Systems Market Drivers

The Increasing Adoption of Digital Banking

One of the most crucial factors that stimulate the demand for Open Banking Systems in the market is the growing popularity of digital banking solutions. More and more representatives of the customer segment are adopting new technologies in the realm of mobile and online banking, demanding more comfortable and reliable services. Open banking systems provide an opportunity to meet the needs of consumers, enabling them to interchange their data with third-party firms to receive a broader range of products and services. Furthermore, it simplifies the way of managing personal finances. For this reason, the growing adoption of digital banking is one of the leading factors spurring the development of the Global Open Banking Systems Market Industry. It is clear that this tendency will continue in the future. As more and more consumers choose online and, especially, mobile banking, the demand for Open Banking Systems will be growing as well.

Not only the increasing popularity of digital banking but also a few other critical factors contribute to the further development of the Global Open Banking Systems Market Industry. As Paulius Cerniauskas explains, "likely to witness gradual uptake owing to the rapid expansion of financial inclusion, adoption of cloud computing, and increase in mobile payment system, along with a substantial increase in the number of fintech startups and a supportive regulatory environment" Finally, the increasing demand for financial inclusion and cloud computing, growing popularity of mobile payments, the growing number of fintech startups, and supportive regulatory environment will be other crucial factors contributing to the increased demand for Open Banking Systems in the future.

The Growing Demand for Financial Inclusion

The growing demand for financial inclusion is the third major factor that is driving the growth of the Global Open Banking Systems Market Industry. Financial inclusion is the ability of every person and business to have access to financial services. Open banking systems can help promote financial inclusion by making it easier for people to access financial products and services. At the same time, open banking systems enable consumers to share their financial data with third-party providers. For consumers, it means that they can have access to financial products and services from a wide variety of sources. At the same time, it also makes it easier for them to manage their money. This can be especially beneficial to people who have been traditionally underserved by the financial system, such as low-income individuals and small businesses. The growing demand for financial inclusion is expected to continue to fuel the growth of the Global Open Banking Systems Market Industry in the future. As more and more people have access to financial services, the demand for open banking systems will continue to grow. This means that this is one of the most important factors that will shape the future of the Global Open Banking Systems Market Industry. At the same time, there are also a lot of other factors that are driving the growth of this industry. Some of them include The increasing adoption of digital banking The growing popularity of mobile payments The increasing adoption of cloud computing, The growing number of fintech startups. Supportive regulatory environment All these factors are expected to continue to drive the growth of the Global Open Banking Systems Market Industry in the future.

The Increasing Adoption of Cloud Computing

The increasing adoption of cloud computing is another major driver of the growth of the Global Open Banking Systems Market Industry. Cloud computing refers to the delivery of computing services over the Internet. Open banking systems can be deployed in the cloud, which offers a number of benefits, such as Scalability: Cloud-based open banking systems can be easily scaled up or down to meet the changing needs of a business. Flexibility: Cloud-based open banking systems can be easily customized to meet the specific needs of a business.Cost-effectiveness: Cloud-based open banking systems are often more cost-effective than on-premises solutions. The increasing adoption of cloud computing is expected to continue to drive the growth of the Global Open Banking Systems Market Industry in the coming years. As more and more businesses move to the cloud, the demand for cloud-based open banking systems will continue to grow. This will create significant opportunities for companies that provide cloud-based open banking solutions. In addition to the increasing adoption of cloud computing, there are a number of other factors that are driving the growth of the Global Open Banking Systems Market Industry. These include: The increasing adoption of digital banking The growing demand for financial inclusion The growing popularity of mobile payments The increasing number of fintech startups, and The supportive regulatory environment. These factors are all expected to contribute to the continued growth of the Global Open Banking Systems Market Industry in the coming years.

Open Banking Systems Market Segment Insights:

Open Banking Systems Market Deployment Model Insights

The Global Open Banking Systems Market is segmented by deployment model into cloud-based and on-premises. During the forecast period, the cloud-based segment is expected to occupy a larger market share. The growth in the cloud-based deployment model is driven by the increased adoption of cloud computing by financial institutions. The cloud-based deployment model has several advantages, including reduced infrastructure costs, increased flexibility and scalability, and improved security. The on-premises deployment model is expected to experience slower growth during the forecast period. The on-premises deployment model requires significant initial investment in hardware and software, and it may be difficult and expensive to manage. The market’s growth is fueled by the increased adoption of open banking regulations, the growing demand for digital banking services, and the increased awareness of the benefits of open banking systems. The market’s growth is also fueled by the increased adoption of cloud computing by financial institutions and the increased number of fintech startups.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Open Banking Systems Market Application Insights

Global Open Banking Systems Market: Revenue for the Application segment will likely rise significantly in the upcoming period. A primary factor supporting this growth is the increasing adoption of open banking solutions amongst various financial institutions and enterprises. Personal Finance Management is the largest application segment, by a wide margin, in the market. This is because of the flexibility open banking provides for consumers to safely connect their bank accounts to third-party applications and services. This allows consumers to manage their finances, track their spending, and make more calibrated decisions about their financial transactions. The Business Banking application segment is another key area where open banking solutions are expected to accelerate. Open banking allows businesses to more efficiently keep their financial operation in order, manage the cash flow and avail newer sources of finance more seamlessly. Lending and Credit Management is another rapidly expanding application segment, and open banking allows lender to access the real-time financial data of their customer and make more prudent lending decisions, thereby simultaneously tackling fraud. Payment processing is another important application segment that will potentially be a key market mover in the upcoming period. Open banking can enable faster, safer and more transparent payment mechanisms between the bank and the parties in a transaction, leading to lowered cash, while direct transactions in relatively cheap, inter-bank payment systems allow better transparency and record keeping.

Open Banking Systems Market Data Type Insights

Account Information, Transaction Data, and Customer Data are the three primary data types in the Open Banking Systems Market. Account Information refers to data related to customer accounts, such as account balances, account numbers, and transaction history. Transaction Data includes information about financial transactions, such as transaction amounts, dates, and merchant details. The increasing adoption of open banking APIs and the growing demand for personalized financial services are driving the growth of this segment. The Global Open Banking Systems Market for Transaction Data is projected to reach $25.6 billion by 2024, growing at a CAGR of 32.5%. The increasing use of mobile banking and the growing popularity of e-commerce are driving the growth of this segment. The Global Open Banking Systems Market for Customer Data is projected to reach $20.1 billion by 2024, growing at a CAGR of 30.9%. The growing demand for personalized financial services and the increasing adoption of data analytics are driving the growth of this segment.

Open Banking Systems Market Vertical Industry Insights

The Vertical Industry segment is a crucial aspect of the Global Open Banking Systems Market, with various industries adopting open banking solutions to enhance their operations and customer experiences. In 2023, the Banking Financial Services sector held the largest market share, driven by the need for enhanced customer data sharing, simplified payments, and improved risk management. The Retail E-commerce industry is projected to witness significant growth as open banking enables seamless online transactions, personalized shopping experiences, and faster checkout processes. Government entities are also embracing open banking to streamline financial management, improve transparency, and enhance citizen services. The Healthcare industry is anticipated to leverage open banking for secure data sharing, improved patient outcomes, and streamlined insurance processes. The Global Open Banking Systems Market revenue for the Vertical Industry segment is estimated to reach USD 23.18 billion by 2024, showcasing the immense growth potential within specific industry verticals.

Open Banking Systems Market Regional Insights

The Global Open Banking Systems Market is segmented into North America, Europe, APAC, South America, and MEA. Among these regions, North America and Europe are the most prominent markets for open banking systems, accounting for a combined market share of over 60% in 2023. The growth of the open banking market in these regions is being driven by the increasing adoption of digital banking services, the rising popularity of fintech companies, and the growing awareness of open banking among consumers. APAC is another rapidly growing market for open banking systems, with a number of countries in the region implementing open banking regulations. The South American and MEA markets are still in their early stages of development, but they are expected to experience significant growth in the coming years. Overall, the Global Open Banking Systems Market is expected to grow at a CAGR of 34.14% from 2024 to 2032, reaching a valuation of USD 100.2 billion by 2032.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Open Banking Systems Market Key Players And Competitive Insights:

Key companies in Open Banking Systems Market are consistently working towards gaining a competitive edge by embracing novel solutions along with increasing geographic footprint. Envestnet | Yodlee, Finastra, FIS, Mambu, Oracle, SAP, Temenos, Thought Machine, Tink, TrueLayer, and banks similar to BBVA and HSBC are some of the leading players in the Open Banking Systems Market. These companies have carried out a wide array of alliances, acquisitions, and new product launches to preserve their stakes. The rising adoption of open banking regulations all over the world, on the one hand, and the increasing demand for convenient and reliable financial services, on the other, motivates the development of the market. The financial industry is anticipated to showcase enhanced competition with the entry of new players along with the launch of new and improved technologies witnessed in Open Banking Systems Market. Open Banking Systems Market is expected to grow above average in the years to come due to the increasing appetite for new solutions.

One of the leading companies in the Open Banking Systems Market is Envestnet | Yodlee. A dappling offering on the market, their open banking solutions range from account aggregation to data enrichment and payment initiation. The company is based in the United States, and most financial institutions use Yodlee’s services globally. Banks, credit unions, and fintech companies constitute the largest part of its clients. The company’s commitment to innovation, together with its client-oriented approach, grants it the status of the leader in the open banking market. On the other hand, Finastra, as one of the competitors in the open banking market, also offers a number of open APIs for financial institutions, thereby helping banks connect with third-party PSAs. For example, some of the solutions provided by Finastra are APIs, a dedicated developer portal, and a set of data analytics tools. The competencies of Finastra allowed us to position the entity as a main leader in the industry and to further develop an extensive network of partners through a collaborative approach that encompasses more than 280 open APIs.

Key Companies in the Open Banking Systems Market Include:

• Stripe


• Flinks


• FIS


• Envestnet | Yodlee


• Tink


• Temenos


• Yodlee


• Mambu


• Finastra


• Token


• Yapily


• Bankifi


• Salt Edge


• Plaid


• Trulioo

Open Banking Systems Industry Developments

The Open Banking Systems Market is projected to grow from USD 7.12 billion in 2023 to USD 100.2 billion by 2032, exhibiting a CAGR of 34.14% during the forecast period. The growth of the market is attributed to the increasing adoption of open banking APIs by financial institutions, the rising demand for real-time payments, and the growing popularity of digital banking services.

Recent news developments in the market include:-

In February 2023, Mastercard announced its partnership with Railsr, a global banking-as-a-service platform, to launch a new open banking solution that will allow businesses to access real-time data and insights from their customers' bank accounts.- In March 2023, Visa announced the launch of its Visa Open Banking Connect platform, which will provide developers with access to a suite of open banking APIs and tools.- In April 2023, Plaid, a leading provider of open banking technology, announced its acquisition of Cognito, a provider of identity verification and fraud prevention solutions. The acquisition will allow Plaid to offer its customers a more comprehensive suite of open banking services.

Open Banking Systems Market Segmentation Insights

Open Banking Systems Market Deployment Model Outlook

• Cloud-based


• On-premises

Open Banking Systems Market Application Outlook

• Personal Finance Management


• Business Banking


• Lending and Credit Management


• Payment Processing

Open Banking Systems Market Data Type Outlook

• Account Information


• Transaction Data


• Customer Data

Open Banking Systems Market Vertical Industry Outlook

• Banking Financial Services


• Retail E-commerce


• Government


• Healthcare

Open Banking Systems Market Regional Outlook

• North America


• Europe


• South America


• Asia Pacific


• Middle East and Africa