Global Open Banking Market and Trends 2021

Global Open Banking Market and Trends 2021

  • October 2021 •
  • 75 pages •
  • Report ID: 6176763 •
  • Format: PDF
Open Banking spreads beyond Europe

The new report, “Global Open Banking Market and Trends 2021” provides a comprehensive summary of the new developments within the Open Banking market across the global regions and shares insights into the market trends. Among other findings, the publication reveals that many countries which have functioning Open Banking ecosystems followed the European regulatory-driven approach.

Open Banking is likely to undergo a rapid increase in the Open Banking adoption rate

Countries around the world are dramatically divided on the level of Open Banking sophistication, and many markets are still only considering or even resisting the system. However, markets that decided to open their banking systems either followed the regulatory approach modelled by Europe or were driven by consumer willingness to exchange data for certain benefits. Europe, the key Open Banking region, with UK as a clear leader, is expected to dominate OB in transaction numbers for the next several years. The Asia-Pacific region follows Europe, but the adoption rate gap between the two is significant.

In Europe, the leading Open Banking market, implementation and acceptance varies

The European Open Banking landscape, based on the PSD2 legislation, is more developed than other regions globally. Moreover, the region has a clear leader - the United Kingdom, an Open Banking pioneer. As of March 2021, the country’s ecosystem had already over two hundred Third-Party Providers (TPPs) and more than three million consumers benefiting from Open Banking. Germany follows the UK in the level of Application Programming Initiative acceptance, however, by the number of TPPs the market, Germany is still far distant from the UK. Additionally, even in the leading markets, consumer resistance to data sharing remains a key barrier to further Open Banking implementation.

Several other global regions are making efforts to catch up with Europe in terms of Open Banking development

Following the European example, other regions across the globe started developing their Open Banking ecosystems. Some such as in Australia, Mexico, Brazil, and South Africa saw regulators implementing legislation to facilitate OB. Meanwhile, others were driven by markets and only later were offered guidelines from policy makers. This was the case in China, USA, Canada and others, as explained in the new publication. In general, Open Banking ecosystems across the world are forecasted to extend in adoption within the coming years and additional countries are expected to connect as the system’s benefits become clearer for the regulators, financial institutions and consumers.

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