Open Banking Shows Gradual Increase Throughout Europe, with a High Share of UK's Population Estimated to Make Use of Open Banking Services by 2023
Within Europe, UK and Germany are the frontrunners in the open banking market
The shift of consumers and businesses globally towards digital and virtual means of payment has prompted regulators worldwide to implement the concept of open banking. With open banking gaining in popularity globally, Europe is no exception to this trend. Thus, within Europe, the UK, followed by Germany and Sweden are the most advanced markets when it comes to the open banking ecosystem development. Open banking in the UK was established in 2017 and has been growing since, with a high percentage of the country's population forecasted to use open banking by September 2023, according to this report. Furthermore, the service benefits more than half of the country's small businesses as it provides another innovative payment option other than credit and debit cards, with small businesses using account information services provided by open banking more than retail consumers. Additionally, the value of successful payments via open banking has seen gradual growth, reaching a value in the millions as of March 2022. After the UK, Germany is also advancing when it comes to open banking reforms. The implementation of regulations such as PSD2 has led to the growth of open banking in Germany, and as of June 2022, the country had the second-highest number of third-party providers within the European Economic Area region. Furthermore, more than two-thirds of home-regulated third-party providers in Germany provide both Account Information Service and Payment Initiation Service, while this share is lower for the European Economic Area region.
Although Europe is a mature open banking market, the growth trajectory differs across countries in Europe
The rise in digital readiness and consumer awareness of the concept of open banking has encouraged regulators globally to implement the open banking initiative rapidly. Thus, the market size of open banking is forecasted to witness a robust double-digit CAGR between 2019 and 2026, as stated in the new report. In 2021, Europe was the top-performing region, having the highest number of open banking products and platforms as compared to other regions. The UK, Germany, and Sweden were the most developed countries in terms of maturity of open banking in 2022. Nevertheless, other countries such as France, Lithuania, and the Netherlands are making improvements to their API standards, focusing on consumer awareness, regulatory framework and monitoring and enforcement of open banking. Despite this, not all countries in Europe witness the same growth pattern in terms of open banking, Finland, for instance, secured a low score in the open banking maturity league as of 2022, mainly because the nation lags in standardizing APIs and improving bank uptimes. Nevertheless, the country is an attractive fintech destination and is a part of the P27 initiative which is a real-time payment system in the Nordic area. Similarly, Latvia and Iceland also performed poorly in the open banking maturity league. In Iceland, the central bank needs to offer minimum standards and expectations on how open banking implementation should take place. Although Iceland lags in terms of developing an open banking infrastructure like its European counterparts, the growing fintech ecosystem is likely to push the growth of open banking in the country, as revealed by the new report.
Questions Covered
1. What are the top benefits that financial executives see in terms of payment initiation services in Europe as of March 2022?
2. What are the top barriers that financial executives in Europe face when implementing payment initiation services as of March 2022?
3. What was the forecasted number of open banking third-party providers in Europe as of March 2022?
4. What was the number of successful open banking payments in the UK as of March 2022?
5. What was the total number of third-party financial service providers in Germany as of June 2022?
Table of Contents
1. Management Summary
2. Global
- Overview of Trends And Development in Open Banking, September 2022 (1 of 2)
- Overview of Trends And Development in Open Banking, September 2022 (2 of 2)
- Open Banking Market Size, in USD billion, 2022 & 2026f
- Value of Global Payments Facilitated by Open Banking, in USD billion, 2021 & 2026f
- Number of Open Banking Products and Platforms, by Regions, Q2 2022
- Annual Growth of API Products, by Regions, in %, Q4 2021
- Share of Fintechs Built on Banking & Finance APIs That Focus on SMEs, in %, Q3 2022
- Share of Fintech Products Built on Banking & Finance APIs That Would be Used For Addressing Issues of Financial Inclusion, in %, Q3 2022
- Breakdown of APIs, by Category, in % of Total API Products, March 2022
- Share of Banks That Are Using Open API Specification Standard to Describe Their API, in %, Q1 2022
- Share of Financial Institutions That Regard Open Banking as a “Must Have” for Their Organization, in %, 2021 vs 2022
- Top Areas Where Open Banking Will Have the Largest Impact, in % of Financial Professionals, 2021 vs 2022
- Top Impact Due to the Introduction of Open Banking, in % of Financial Institutions, September 2022
- Top Monetization Strategies After the Introduction of APIs, in % of Banks, 2021e
- Overview of Open Banking Service Providers incl. Description of Services Provided, September 2022
3. Europe
3.1. Regional
- Country Ranking by Open Banking Ecosystem Development, September 2022
- Overview of The Open Banking System, by Country, incl. Improvements, September 2022 (1 of 3)
- Overview of The Open Banking System, by Country, incl. Improvements, September 2022 (2 of 3)
- Overview of The Open Banking System, by Country, incl. Improvements, September 2022 (3 of 3)
- Share of Financial Executives Who Had a Positive Attitude Towards Open Banking, in %, 2019 vs 2021
- Share of Financial Executives Who Believe Open Banking is a Revolution of The Banking Industry, in %, 2021
- Share of Financial Executives Who Already Invested or Plan to Invest in Open Banking in the Next 12 Months, in %, March 2022
- Share of Financial Executives Who Indicated That Their Level of Investment Increased as a Result of The Pandemic, in %, March 2022
- Share of Financial Executives Who Indicated Payment Initiation Services (PIS) to Be The Most Important Open Banking Use Case to Invest in For Their Business, in %, March 2022
- Top Benefits of The Payment Initiation Services, in % of Financial Executives, March 2022
- Top Drivers For The Adoption of Payment Initiation Services (PIS), in % of Financial Executives, March 2022
- Top Barriers to The Adoption of Payment Initiation Services (PIS), in % of Financial Executives, March 2022
- Attitudes Towards User Awareness in Introduction of PIS, by Country, in % of Financial Executives, March 2022
- Number of Third-Party Providers, January 2020, March 2020, June 2020, September 2020, December 2020, March 2021, June 2021, September 2021, December 2021, March 2022f
- Most Preferred Areas Among Respondents to Use Open Banking, in % of Respondents, March 2022
3.2. UK
- Overview of The Open Banking Developments, September 2022
- Number of Live-to-Market Open Banking Enabled Services, by Principal Outcome Area, March 2021, September 2021 & March 2022
- Number of Live-to-Market Open Banking Enabled Products and Services, by Customer Type, March 2021, September 2021, & March 2022
- Number of Live-to-Market Open Banking Enabled Products and Services, by route to Market, March 2021, September 2021, & March 2022
- Share of Account Information Service (AIS) And Payment Initiation Service (PIS) Users, by User Type, in %, March 2022
- Number of Successful Open Banking Payments, in millions, March 2021, September 2021 & March 2022
- Number of Active Open Banking Users, in millions, November 2019, September 2020, September 2021 & January 2022
- Breakdown of Awareness Regarding Open Banking Among Businesses and Consumers, in % of Respondents, 2022e
3.3. Germany
- Overview of The Open Banking System, September 2022
- Share of Third-Party Providers (TPPs) Offering Different Services, by Type of Services, 2021
- Share of EEA Third-Party Providers Approved to Provide Services in Germany, in %, September 2019 vs June 2022
- Total Number of TPPs, September 2019, September 2021 & June 2022
- Share of EEA Countries That Are Authorized to Provide Third-Party Provider Services, in %, June 2022
- Number of TPPs Passporting into Germany, by Countries, June 2022
3.4. Russia
- Overview of The Open Banking System, September 2022
Samples
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Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Promsvyazbank
- Sberbank
- Tinkoff Bank
