PUBLISHER: The Business Research Company | PRODUCT CODE: 1470318
PUBLISHER: The Business Research Company | PRODUCT CODE: 1470318
The open banking market consists of sales of open banking services that are used to link banks, third parties and technology providers, and allow them to exchange data easily and securely for the benefit of their consumers. Open banking is a system that allows the bank to develop better personal finance management distribution channel programs for third parties to offer new services to their customers.
The global open banking market was valued at $5,951.8 million in 2018 which grew till 2023 at a compound annual growth rate (CAGR) of more than 33.0%.
Increasing Demand For Fast & Real-Time Fund Transfer
The increasing demand for fast & real-time fund transfer was the major driver which drove the growth of the market. The fast and real-time fund transfers are IMPS (Immediate Payment Service) and RTGS (Real Time Gross Settlement). Open banking platforms create a real-time network of connections to financial institutions. Open banking is making third-party automated clearing house (ACH) payments faster and more secure, maximizing savings, rewards and investment opportunities. A simple account balance check smooths the pre-funding path and protects consumers and merchants alike from failed payments and potential fees. For example, in October 2020, India emerged as the global leader in real-time payments, handling 41 million transactions per day, according to a report by FIS Global.
The real-time activity has further improved in the country, with volumes jumping more than twice this year and the transaction value increasing 80%. India saw growth of around 213% in the number of real-time payments processed over the past year; Bahrain, Ghana, the Philippines and Australia also witnessed faster growth in the same period. China and South Korea, with more than 38 million and 12 million daily transactions per day, respectively, completed the top three in the Asia-Pacific region, along with India. Thus, the increasing demand for fast and real-time fund transfer drove the growth of the open banking market.
Introduction Of Open Banking Payments Solution To Provide Seamless User Experience
The introduction of an open banking payments solution is a key trend gaining popularity in the market. Major companies operating in the open banking market are focused on developing and introducing open banking payments solutions to gain a competitive edge in the market. For example, in September 2023, BNY Mellon, a US-based custodian bank and securities services company, partnered with Trustly, a Sweden-based consumer banking company, to launch Bankify, an open banking payments solution. Bankify is designed to help organizations receive consumer payments directly from bank accounts, offering a seamless user experience and guaranteed funds for business receivables. This new payment solution offers unique open banking-enabled data insights for merchants, providing additional value beyond transactional effectiveness.
The global open banking market is fairly fragmented, with many players operating in the market. The top ten competitors in the market made up to 22.7% of the total market in 2022.
Open Banking Global Market Opportunities And Strategies To 2033 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global open banking market as it emerges from the COVID-19 shut down.
Where is the largest and fastest-growing market for open banking? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The open banking market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider open banking market; and compares it with other markets.
Conclusions And Recommendations- This section includes recommendations for open banking providers in terms of product/service offerings geographic expansion, marketing strategies and target groups.