Product Code: FBI112359
Growth Factors of open banking Market
The global open banking market continues its rapid expansion as digital transformation accelerates across the financial services industry. According to the report, the market was valued at USD 29.72 billion in 2024, is projected to reach USD 35.30 billion in 2025, and is expected to grow significantly to USD 128.89 billion by 2032, registering a CAGR of 20.3% over the forecast period. Europe led the global market in 2024 with a 32.27% share, driven by strong regulatory frameworks, early API adoption, and mature digital banking ecosystems.
Open banking enables secure data sharing between financial institutions, banks, and third-party providers through standardized APIs. This API-driven model fosters innovation, encourages competition, and gives consumers greater control over their financial data. Global adoption of open banking is rising at a remarkable pace, supported by the growing volume of digital payments. The total value of banking-related payment transactions is forecast to rise by over 500% from 2023 to 2027, increasing from USD 57 billion to USD 330 billion. Market leaders such as Plaid, Tink, GoCardless, TrueLayer, and Yapily continue to transform the landscape by forming partnerships with fintechs, technology vendors, and regulatory bodies.
Impact of Generative AI
Generative AI is reshaping the financial services sector and enhancing open banking capabilities. With banks expected to generate USD 200-340 billion in additional annual revenue from AI-representing 9-15% of operating profits-generative AI enables deeper personalization, dynamic risk analysis, and automated compliance. The integration of generative AI with open banking accelerates product innovation, improves fraud detection, and enhances customer experience through intelligent automation and predictive insights. Together, these technologies are driving a new era of hyper-personalized banking.
Market Trends
A major trend shaping market growth is the rising demand for open banking payment APIs. As 87% of consumers now use open-banking-powered applications, mobile banking adoption has surged. Banks integrating payment APIs are witnessing as much as a 20% increase in revenue due to improved customer engagement and new digital revenue channels. The rise of budgeting tools, investment platforms, and automated payment systems further reflects the significance of API-driven innovation.
Market Drivers
Growing consumer demand for digital financial services remains a critical growth driver. Between 2014 and 2021, digital payment usage in low- and middle-income economies doubled from 26% to 51%, while overall digital payment usage increased from 50% to 65% among account holders. With global digital banking users surpassing 3.6 billion in 2024, the shift toward mobile-led financial management supports open banking adoption. Increased smartphone penetration, regulatory evolution, and improved digital infrastructure collectively strengthen market momentum.
Market Restraints
Despite growth opportunities, concerns around data privacy and security continue to challenge the market. The sharing of highly sensitive financial data with third-party providers raises risks related to breaches and unauthorized access. While frameworks such as PSD2 and GDPR provide protection, uneven global regulatory enforcement affects consumer trust, slowing adoption in certain regions.
Market Opportunities
The rise of embedded finance presents strong opportunities for open banking expansion. Embedded finance integrates payments, lending, insurance, and banking directly into non-financial platforms such as e-commerce apps, ride-hailing services, and SaaS tools. Open banking APIs allow real-time data sharing and seamless transactions, enabling personalized lending, frictionless checkout processes, and instant account verification. The convergence of open banking and embedded finance supports the transition toward a more decentralized, customer-centric financial ecosystem.
Regional Outlook
Europe dominated the market with USD 9.59 billion in 2024, supported by PSD2 and advanced digital readiness. The region also holds 46% of global API offerings, and open banking users across the EU reached 64 million in 2024.
Asia Pacific is projected to grow with the highest CAGR, driven by government-backed initiatives such as Singapore's API Exchange and India's Account Aggregator Framework.
North America is witnessing substantial growth as major banks adopt standardized APIs following the U.S. CFPB's 2024 Section 1033 rulemaking.
Middle East & Africa and South America continue to develop open banking frameworks that improve financial inclusion and support fintech growth.
Conclusion
Expanding from USD 29.72 billion in 2024 to USD 128.89 billion by 2032, the global open banking market is entering a period of unprecedented innovation. API adoption, embedded finance, stringent regulations, and generative AI will continue shaping the next generation of financial services, solidifying open banking as a cornerstone of global digital finance.
Segmentation By Offering
- Account Information (Account Aggregation)
- Payment Initiation
- Direct Bank Payments
- Peer-to-Peer Payments
- Bill Payments
- Fund Management
- Credit & Lending
- Fraud Prevention and Risk Management
- Compliance and Regulatory Reporting
By Deployment
- On-premise
- Cloud-based
- Hybrid
By End User
- Banks and Financial Institutions
- Individuals
- Fintech Companies
- E-commerce Companies
- Accounting Platforms
- Credit & Lending Companies
By Region
- North America (By Offering, By Deployment, By End User, and By Country)
- South America (By Offering, By Deployment, By End User, and By Country)
- Brazil
- Argentina
- Rest of South America
- Europe (By Offering, By Deployment, By End User, and By Country)
- U.K.
- Germany
- Italy
- France
- Spain
- Russia
- Benelux
- Nordics
- Rest of Europe
- Middle East & Africa (By Offering, By Deployment, By End User, and By Country)
- Turkey
- Israel
- GCC
- South Africa
- North Africa
- Rest of Middle East & Africa
- Asia Pacific (By Offering, By Deployment, By End User, and By Country)
- China
- Japan
- India
- South Korea
- ASEAN
- Oceania
- Rest of Asia Pacific
Companies Profiled in the Report * Plaid (U.S.)
- TrueLayer (U.K.)
- Tink AB (Sweden)
- Token (U.K.)
- Yapily (U.K.)
- Salt Edge (U.K.)
- Finastra (U.K.)
- MX Technologies (U.S.)
- Volt (U.K.)
- Worldline (France)
Table of Content
1. Introduction
- 1.1. Definition, By Segment
- 1.2. Research Methodology/Approach
- 1.3. Data Sources
2. Executive Summary
3. Market Dynamics
- 3.1. Macro and Micro Economic Indicators
- 3.2. Drivers, Restraints, Opportunities and Trends
- 3.3. Impact of Generative AI
4. Competition Landscape
- 4.1. Business Strategies Adopted by Key Players
- 4.2. Consolidated SWOT Analysis of Key Players
- 4.3. Global Open Banking Key Players (Top 3 - 5) Market Share/Ranking, 2024
5. Global Open Banking Market Size Estimates and Forecasts, By Segments, 2019-2032
- 5.1. Key Findings
- 5.2. By Offering (USD)
- 5.2.1. Account Information (Account Aggregation)
- 5.2.2. Payment Initiation
- 5.2.2.1. Direct Bank Payments
- 5.2.2.2. Peer-to-Peer Payments
- 5.2.2.3. Bill Payments
- 5.2.3. Fund Management
- 5.2.4. Credit & Lending
- 5.2.5. Fraud Prevention and Risk Management
- 5.2.6. Compliance and Regolatory Reporting
- 5.3. By Deployment (USD)
- 5.3.1. On-premise
- 5.3.2. Cloud-based
- 5.3.3. Hybrid
- 5.4. By End User (USD)
- 5.4.1. Banks and Financial Institutions
- 5.4.2. Individuals
- 5.4.3. Fintech Companies
- 5.4.4. E-commerce Companies
- 5.4.5. Accounting Platforms
- 5.4.6. Credit & Lending Companies
- 5.5. By Region (USD)
- 5.5.1. North America
- 5.5.2. Europe
- 5.5.3. Asia Pacific
- 5.5.4. Middle East & Africa
- 5.5.5. South America
6. North America Open Banking Market Size Estimates and Forecasts, By Segments, 2019-2032
- 6.1. Key Findings
- 6.2. By Offering (USD)
- 6.2.1. Account Information (Account Aggregation)
- 6.2.2. Payment Initiation
- 6.2.2.1. Direct Bank Payments
- 6.2.2.2. Peer-to-Peer Payments
- 6.2.2.3. Bill Payments
- 6.2.3. Fund Management
- 6.2.4. Credit & Lending
- 6.2.5. Fraud Prevention and Risk Management
- 6.2.6. Compliance and Regolatory Reporting
- 6.3. By Deployment (USD)
- 6.3.1. On-premise
- 6.3.2. Cloud-based
- 6.3.3. Hybrid
- 6.4. By End User (USD)
- 6.4.1. Banks and Financial Institutions
- 6.4.2. Individuals
- 6.4.3. Fintech Companies
- 6.4.4. E-commerce Companies
- 6.4.5. Accounting Platforms
- 6.4.6. Credit & Lending Companies
- 6.5. By Country (USD)
- 6.5.1. United States
- 6.5.2. Canada
- 6.5.3. Mexico
7. South America Open Banking Market Size Estimates and Forecasts, By Segments, 2019-2032
- 7.1. Key Findings
- 7.2. By Offering (USD)
- 7.2.1. Account Information (Account Aggregation)
- 7.2.2. Payment Initiation
- 7.2.2.1. Direct Bank Payments
- 7.2.2.2. Peer-to-Peer Payments
- 7.2.2.3. Bill Payments
- 7.2.3. Fund Management
- 7.2.4. Credit & Lending
- 7.2.5. Fraud Prevention and Risk Management
- 7.2.6. Compliance and Regolatory Reporting
- 7.3. By Deployment (USD)
- 7.3.1. On-premise
- 7.3.2. Cloud-based
- 7.3.3. Hybrid
- 7.4. By End User (USD)
- 7.4.1. Banks and Financial Institutions
- 7.4.2. Individuals
- 7.4.3. Fintech Companies
- 7.4.4. E-commerce Companies
- 7.4.5. Accounting Platforms
- 7.4.6. Credit & Lending Companies
- 7.5. By Country (USD)
- 7.5.1. Brazil
- 7.5.2. Argentina
- 7.5.3. Rest of South America
8. Europe Open Banking Market Size Estimates and Forecasts, By Segments, 2019-2032
- 8.1. Key Findings
- 8.2. By Offering (USD)
- 8.2.1. Account Information (Account Aggregation)
- 8.2.2. Payment Initiation
- 8.2.2.1. Direct Bank Payments
- 8.2.2.2. Peer-to-Peer Payments
- 8.2.2.3. Bill Payments
- 8.2.3. Fund Management
- 8.2.4. Credit & Lending
- 8.2.5. Fraud Prevention and Risk Management
- 8.2.6. Compliance and Regolatory Reporting
- 8.3. By Deployment (USD)
- 8.3.1. On-premise
- 8.3.2. Cloud-based
- 8.3.3. Hybrid
- 8.4. By End User (USD)
- 8.4.1. Banks and Financial Institutions
- 8.4.2. Individuals
- 8.4.3. Fintech Companies
- 8.4.4. E-commerce Companies
- 8.4.5. Accounting Platforms
- 8.4.6. Credit & Lending Companies
- 8.5. By Country (USD)
- 8.5.1. United Kingdom
- 8.5.2. Germany
- 8.5.3. France
- 8.5.4. Italy
- 8.5.5. Spain
- 8.5.6. Russia
- 8.5.7. Benelux
- 8.5.8. Nordics
- 8.5.9. Rest of Europe
9. Middle East & Africa Open Banking Market Size Estimates and Forecasts, By Segments, 2019-2032
- 9.1. Key Findings
- 9.2. By Offering (USD)
- 9.2.1. Account Information (Account Aggregation)
- 9.2.2. Payment Initiation
- 9.2.2.1. Direct Bank Payments
- 9.2.2.2. Peer-to-Peer Payments
- 9.2.2.3. Bill Payments
- 9.2.3. Fund Management
- 9.2.4. Credit & Lending
- 9.2.5. Fraud Prevention and Risk Management
- 9.2.6. Compliance and Regolatory Reporting
- 9.3. By Deployment (USD)
- 9.3.1. On-premise
- 9.3.2. Cloud-based
- 9.3.3. Hybrid
- 9.4. By End User (USD)
- 9.4.1. Banks and Financial Institutions
- 9.4.2. Individuals
- 9.4.3. Fintech Companies
- 9.4.4. E-commerce Companies
- 9.4.5. Accounting Platforms
- 9.4.6. Credit & Lending Companies
- 9.5. By Country (USD)
- 9.5.1. Turkey
- 9.5.2. Israel
- 9.5.3. GCC
- 9.5.4. North Africa
- 9.5.5. South Africa
- 9.5.6. Rest of MEA
10. Asia Pacific Open Banking Market Size Estimates and Forecasts, By Segments, 2019-2032
- 10.1. Key Findings
- 10.2. By Offering (USD)
- 10.2.1. Account Information (Account Aggregation)
- 10.2.2. Payment Initiation
- 10.2.2.1. Direct Bank Payments
- 10.2.2.2. Peer-to-Peer Payments
- 10.2.2.3. Bill Payments
- 10.2.3. Fund Management
- 10.2.4. Credit & Lending
- 10.2.5. Fraud Prevention and Risk Management
- 10.2.6. Compliance and Regolatory Reporting
- 10.3. By Deployment (USD)
- 10.3.1. On-premise
- 10.3.2. Cloud-based
- 10.3.3. Hybrid
- 10.4. By End User (USD)
- 10.4.1. Banks and Financial Institutions
- 10.4.2. Individuals
- 10.4.3. Fintech Companies
- 10.4.4. E-commerce Companies
- 10.4.5. Accounting Platforms
- 10.4.6. Credit & Lending Companies
- 10.5. By Country (USD)
- 10.5.1. China
- 10.5.2. India
- 10.5.3. Japan
- 10.5.4. South Korea
- 10.5.5. ASEAN
- 10.5.6. Oceania
- 10.5.7. Rest of Asia Pacific
11. Company Profiles for Top 10 Players (Based on data availability in public domain and/or on paid databases)
- 11.1. Plaid
- 11.1.1. Overview
- 11.1.1.1. Key Management
- 11.1.1.2. Headquarters
- 11.1.1.3. Offerings/Business Segments
- 11.1.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.1.2.1. Employee Size
- 11.1.2.2. Past and Current Revenue
- 11.1.2.3. Geographical Share
- 11.1.2.4. Business Segment Share
- 11.1.2.5. Recent Developments
- 11.2. TrueLayer
- 11.2.1. Overview
- 11.2.1.1. Key Management
- 11.2.1.2. Headquarters
- 11.2.1.3. Offerings/Business Segments
- 11.2.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.2.2.1. Employee Size
- 11.2.2.2. Past and Current Revenue
- 11.2.2.3. Geographical Share
- 11.2.2.4. Business Segment Share
- 11.2.2.5. Recent Developments
- 11.3. Tink AB
- 11.3.1. Overview
- 11.3.1.1. Key Management
- 11.3.1.2. Headquarters
- 11.3.1.3. Offerings/Business Segments
- 11.3.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.3.2.1. Employee Size
- 11.3.2.2. Past and Current Revenue
- 11.3.2.3. Geographical Share
- 11.3.2.4. Business Segment Share
- 11.3.2.5. Recent Developments
- 11.4. Token
- 11.4.1. Overview
- 11.4.1.1. Key Management
- 11.4.1.2. Headquarters
- 11.4.1.3. Offerings/Business Segments
- 11.4.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.4.2.1. Employee Size
- 11.4.2.2. Past and Current Revenue
- 11.4.2.3. Geographical Share
- 11.4.2.4. Business Segment Share
- 11.4.2.5. Recent Developments
- 11.5. Yapily
- 11.5.1. Overview
- 11.5.1.1. Key Management
- 11.5.1.2. Headquarters
- 11.5.1.3. Offerings/Business Segments
- 11.5.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.5.2.1. Employee Size
- 11.5.2.2. Past and Current Revenue
- 11.5.2.3. Geographical Share
- 11.5.2.4. Business Segment Share
- 11.5.2.5. Recent Developments
- 11.6. Salt Edge
- 11.6.1. Overview
- 11.6.1.1. Key Management
- 11.6.1.2. Headquarters
- 11.6.1.3. Offerings/Business Segments
- 11.6.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.6.2.1. Employee Size
- 11.6.2.2. Past and Current Revenue
- 11.6.2.3. Geographical Share
- 11.6.2.4. Business Segment Share
- 11.6.2.5. Recent Developments
- 11.7. Finastra
- 11.7.1. Overview
- 11.7.1.1. Key Management
- 11.7.1.2. Headquarters
- 11.7.1.3. Offerings/Business Segments
- 11.8. Key Details (Key details are consolidated data and not product/service specific)
- 11.8.1. Employee Size
- 11.8.2. Past and Current Revenue
- 11.8.3. Geographical Share
- 11.8.4. Business Segment Share
- 11.8.5. Recent Developments
- 11.9. MX Technologies
- 11.9.1. Overview
- 11.9.1.1. Key Management
- 11.9.1.2. Headquarters
- 11.9.1.3. Offerings/Business Segments
- 11.9.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.9.2.1. Employee Size
- 11.9.2.2. Past and Current Revenue
- 11.9.2.3. Geographical Share
- 11.9.2.4. Business Segment Share
- 11.9.2.5. Recent Developments
- 11.10. Volt
- 11.10.1. Overview
- 11.10.1.1. Key Management
- 11.10.1.2. Headquarters
- 11.10.1.3. Offerings/Business Segments
- 11.10.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.10.2.1. Employee Size
- 11.10.2.2. Past and Current Revenue
- 11.10.2.3. Geographical Share
- 11.10.2.4. Business Segment Share
- 11.10.2.5. Recent Developments
- 11.11. Worldline
- 11.11.1. Overview
- 11.11.1.1. Key Management
- 11.11.1.2. Headquarters
- 11.11.1.3. Offerings/Business Segments
- 11.11.2. Key Details (Key details are consolidated data and not product/service specific)
- 11.11.2.1. Employee Size
- 11.11.2.2. Past and Current Revenue
- 11.11.2.3. Geographical Share
- 11.11.2.4. Business Segment Share
- 11.11.2.5. Recent Developments
12. Key Takeaways