The global open banking market size is expected to reach $135,17-billion by 2030, expanding at a CAGR of 27,2% from 2023 to 2030, according to a new study conducted by Grand View Research.
The market growth can be attributed to several factors, including enhanced customer involvement made possible by open banking APIs, favorable government regulations, and increased adoption of innovative services and applications.
In addition, the changed focus of retail banks toward consolidated technological enhancements also bodes well for the market’s growth.
Key industry players are aggressively investing in offering enhanced services to their customers.
Increased strategic initiatives in the open banking space by prominent players are expected to drive market growth over the forecast period.
The outbreak of the Covid-19 pandemic is expected to play a vital role in driving the growth of the open banking industry over the forecast period. Since the pandemic, the banking industry has been continuously evolving to improve the customer experience and ease the process of banking for consumers.
In addition, the rapid adoption of digitalisation is expected to create a positive outlook for the market.
Highlights from the Open Banking Market Report include:
* The banking & capital markets segment dominated the market in 2022. The change in the investment need of the new age population is expected to propel segment growth. People are looking for more flexible and worthy investment options offered through advanced platforms.
* The cloud segment is anticipated to witness the fastest growth owing to the increased adoption of cloud technology across the banking sector. Banks are leveraging the benefits of open banking by implementing strategic cloud solutions. As open banking evolves, the cloud is projected to become a critical technology in the banking sector.
* The app market segment dominated the market in 2022. The segment growth can be attributed to the rising utilisation of smartphones and applications for numerous purposes, such as mobile banking. Open banking applications leverage APIs to provide various services, such as rapid payments, a financial dashboard displaying accounts from several banks, proof of income, credit status verification, and money-saving advice to customers.
* The Asia Pacific regional market is anticipated to witness the fastest growth over the forecast period. The growing technological awareness in developing countries of the region is expected to play a decisive role in driving the growth of the regional market. Moreover, the Asia Pacific region is portraying an increased willingness of customers to share personal data in exchange for more customer-tailored services.