Open Banking Market Report 2025

The open banking market size has grown exponentially in recent years. It will grow from $30.89 billion in 2024 to $38.86 billion in 2025 at a compound annual growth rate (CAGR) of 25.8%. The growth in the historic period can be attributed to increasing demand for fast and real-time fund transfer, rising use of digital banking services, strong economic growth in emerging markets, and government initiatives.

The open banking market size is expected to see exponential growth in the next few years. It will grow to $94.14 billion in 2029 at a compound annual growth rate (CAGR) of 24.8%. The growth in the forecast period can be attributed to a surge in usage of online platforms, rising urbanization, an increase in younger generations, an increase in mergers and acquisitions, and increasing adoption of financial technology for payment. Major trends in the forecast period include a focus on the use of big data, a focus on banking as a service (baas) model, a focus on personalization, a focus on variable recurring payments, a focus on strategic partnerships and investments, and focus on new initiatives and programs.

The growth of the open banking market is being driven by the increased adoption of online platforms for payment transactions. The digital payment landscape is expanding rapidly due to the emergence of new payment methods, rising e-commerce activities, enhanced broadband access, and the introduction of innovative technologies. Payment gateway APIs are utilized by online platforms such as PhonePe, Paytm, and Google Pay to handle recurring billing, and these APIs are frequently integrated within open banking systems. For example, in April 2023, the National Informatics Centre, a government department in India, reported that by the end of 2022, the Unified Payments Interface (UPI) achieved a total transaction value of INR 125.95 trillion (approximately $1.497 trillion), marking a 1.75-fold increase compared to the previous year. This total transaction value accounted for around 86% of India's GDP for the fiscal year 2022. Consequently, the growing use of online platforms for payment processing is anticipated to further boost the open banking market in the future.

The growth of the open banking market will be significantly influenced by the rising younger population worldwide. Approximately three out of four millennials express strong confidence in using technology to manage their finances, compared to just over half of non-millennials. Having grown accustomed to handling various daily tasks digitally, millennials expect the same level of convenience, speed, and security in their financial dealings. This younger demographic is also more inclined to try new tools compared to older generations. Overall, younger consumers are more likely to view technology as a superior option and are more prone to linking their bank accounts for recurring payments, retail purchases, and digital wallet transactions. For example, in May 2024, the Office for National Statistics, an executive office of the UK Statistics Authority, reported that in 2022, the population aged 15 to 34 reached 16.49 million, significantly exceeding the 20 to 34 age segment, which comprised 12.86 million individuals. Thus, the increase in the younger population is a driving force behind the growth of the open banking market.

A notable trend in the open banking market is the introduction of technologically advanced platforms and services. Businesses are actively seeking seamless access to banking and payment services, leading to continuous investments in digitization. For instance, Scotiabank launched Scotia TranXactTM in August 2022, a digital payments platform providing business banking clients with on-demand access to payment and cash management APIs. This move aligns with the ongoing digitization of cash and treasury management services, catering to the digital needs of global business banking clients.

The use of payment initiation API (Application Programming Interface) is emerging as a key trend in the open banking market. Companies are focusing on the development and launch of payment initiation service APIs to drive market growth. In September 2022, Celcoin introduced a payment initiation API in Brazil, designed to enhance flexibility for any company without requiring extensive open banking technology knowledge. This solution aims to streamline operations by eliminating intermediaries, enabling instant payments directly from customers' bank accounts.

In March 2022, Visa, a US-based digital payments provider, acquired Tink for an undisclosed amount. This acquisition aims to transform Europe's digital financial services by combining Tink’s technology with Visa's infrastructure, thereby improving access to financial data and tools. The partnership is expected to drive innovation and expedite the adoption of open banking, enabling both consumers and businesses to access tailored financial products. Tink is an open banking platform based in Sweden.

Major companies operating in the open banking market include Banco Santander S.A, BBVA SA, Credit Agricole, HSBC Bank plc., Citigroup, Capital One, NatWest Group plc., DBS Bank, Lloyds Banking Group, Barclays, Axis Bank, Bank Of Baroda, BNL, FamPay, Federal Bank, Finin, HDFC Bank, Airwallex, American Express, ANZ, China Construction Bank (CCB), ICBC Bank, WeBank, ChiantiBanca, Ant Financial, Allied Irish Bank, Bank of Ireland, Danske, Nationwide, RBS Group, ING, Caixa Geral De Depositos, La Banque Postale, Cofidis, Hello bank, Bunq, BNP Paribas, OTP Bank, Ikano Bank, Oneggo Bank, Tinkoff Bank, Wise, Raiffeisen Bank, Microsoft Corporation, IBM, Amazon Web Services, Hewlett Packard Enterprise, Intel, Oracle Corporation, Deposit Solutions, Finestra, Jack Henry & Associates, Inc, Nordigen Solutions, AlphaPoint, Axway, Spire Technologies, Tarabut Gateway.

North America was the largest region in the open banking market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the open banking market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the open banking market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

Open banking refers to a banking practice where third-party financial service providers utilize application programming interfaces (APIs) to access consumer banking, transaction, and other data from banks and non-banking financial companies (NBFCs). These APIs offer a secure means of sharing financial information between parties, facilitating easier comparisons of current accounts and other banking services for consumers. Open banking serves as a collaborative platform that brings together banks, third-party entities, and technology providers, enabling secure and efficient data exchange to benefit consumers.

The primary services in open banking encompass transactional services, communicative services, and information services. Transaction banking provides trade finance and cash management services to businesses, government agencies, and other financial organizations. Various financial services are included under categories such as bank and capital markets, payments, digital currencies, and value-added services, and they can be deployed through different modes such as cloud, on-premises, and hybrid. Distribution channels for open banking services include bank channels, app markets, distributors, and aggregators.

The open banking market research report is one of a series of new reports that provides open banking market statistics, including open banking industry global market size, regional shares, competitors with an open banking market share, detailed open banking market segments, market trends and opportunities, and any further data you may need to thrive in the open banking industry. This open banking market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The open banking market includes revenues earned by entities by account information service providers (AISPs) and payment initiation service providers (PISPs). The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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