Open Banking Market Size - By Financial Services, By Component, By Deployment Mode, By Technology, By End Use, By Business Model, Growth Forecast, 2025 - 2034

Open Banking Market Size

The global open banking market size was valued at USD 28.2 billion in 2024 and is projected to grow at a CAGR of 19.2% between 2025 and 2034. This growth is driven by increasing demand for secure and seamless financial services, digital innovation, and regulatory support. Open banking enables greater financial transparency and competition, leading to enhanced customer experience and new business opportunities across the banking ecosystem.
 

There is a notable increase in the demand for data-driven insights that ultimately helps drive the growth of open banking. Open banking makes it possible for banks and fintech to analyze customer behavior, spending and what customers require with their finances. The findings make it possible to improve products for each customer, better handle risks and raise the quality of customer service. With both businesses and consumers seeking individual financial support, the demand for useful data keeps driving open banking globally.
 

Technological advances in API integration are a major driver of growth in the open banking market. Modern, secure, and standardized APIs allow banks to seamlessly connect with third-party providers, enabling real-time data sharing and innovative financial services. These advancements enhance interoperability, reduce development time, and improve system scalability. As APIs become more efficient and secure, they empower banks and fintech to collaborate more effectively, deliver faster, more personalized, and customer-centric financial solutions that fuel the expansion of open banking.
 

The increased adoption of digital banking is a key driver of the open banking market, as more consumers and businesses demand seamless, real-time access to financial services. Digital banking platforms enable easier integration of third-party applications through APIs, which is at the core of open banking. As people become more comfortable handling their accounts online, banks are compelled to offer open, customer-centric solutions that enhance convenience, personalization, and accessibility further accelerating the growth and acceptance of open banking ecosystems.
 

For instance, in May 2025, the Chhattisgarh government inaugurated an Indian Overseas Bank branch in Jagargunda, Sukma district, a region previously underserved due to Maoist insurgency. This move aims to provide banking access to approximately 14,000 residents across 12 nearby villages, aligning with the broader goal of financial inclusion through digital means.
 

Open Banking Market Trends

• Artificial Intelligence (AI) is transforming open banking by enabling hyper-personalized financial services. AI analyzes vast amounts of customer data to offer tailored recommendations, spending insights, and predictive alerts. This enhances user engagement and satisfaction. Additionally, AI strengthens fraud detection by identifying unusual activities in real-time, thereby improving security. The integration of AI is becoming a standard in delivering smarter, more responsive banking experiences.
   
• For instance, in May 2025, Wall Street banks like JPMorgan and Goldman Sachs have significantly invested in generative AI technologies to enhance various banking functions, including customer service and marketing. These advancements aim to provide more personalized financial services to clients.
   
• Open banking is evolving into open finance, extending data-sharing principles beyond banking to include insurance, pensions, investments, and mortgages. This broader approach allows consumers to access a comprehensive view of their financial lives through a single platform. It facilitates better financial management and decision-making, offering a more holistic and integrated financial experience.
   
• For instance, in January 2025, the UK's Financial Conduct Authority (FCA) announced plans to introduce Variable Recurring Payments (VRPs) and further develop Open Finance initiatives. The FCA aims to enhance competition and consumer choice in the financial sector by collaborating with the Payment Systems Regulator (PSR) and leveraging capabilities anticipated under the Data (Use and Access) Bill. These efforts are part of a broader strategy to modernize the UK's financial services and support economic growth.
   
• Traditional banks and fintech companies are increasingly collaborating to leverage each other's strengths. Banks offer reliability and a broad customer base, while fintech’s bring innovation and agility. These partnerships are leading to the development of new financial products and services, enhancing customer experience and driving the adoption of open banking solutions.
   
• For instance, in May 2025, Citigroup announced the sale of its Citi Global Alternatives platform, encompassing over 180 private-market funds, to fintech firm iCapital. While iCapital will manage and operate the platform, Citi will continue distributing the funds and advising clients.
   

Open Banking Market Analysis

Based on financial services, the open banking market is divided into banking & capital markets, payments, digital lending, insurance, wealth management, and personal finance management (PFM). In 2024, the banking & capital markets segment dominated the market, accounting for around 30% share.
 

• The banking and capital markets segment holds the largest share in the open banking market primarily due to its foundational role in enabling API-based financial ecosystems. Traditional banks are increasingly mandated by regulations like the EU’s PSD2 and the UK’s Open Banking directive to open access to customer data, allowing third-party providers to deliver innovative financial services. This regulatory push has led to widespread API adoption in retail and commercial banking, creating a robust infrastructure that facilitates faster payments, account aggregation, and credit risk assessment.
   
• Furthermore, the sector benefits from its extensive customer base and transaction volume, which serve as rich data sources for fintech partnerships. Banks leverage open banking to improve customer experience by offering personalized services such as budgeting tools, real-time financial insights, and seamless onboarding. These enhancements contribute to higher customer retention and operational efficiency, reinforcing the segment’s dominant market position.
   
• Furthermore, capital market players are exploring open banking for automation in investment advisory, compliance, and risk management processes. The integration of open APIs enables smoother data flows between banks, brokers, and asset managers, fostering transparency and speed. These capabilities support smarter investment decisions and reduce operational friction, making the segment pivotal in the broader adoption of open banking solutions. 
   
• For instance, in April 2025, CRIF partnered with claims management firm Crawford to integrate open banking technology into the insurance claims process. This collaboration allows UK businesses to securely connect their bank accounts during claims, reducing manual processing times by 30% and improving payout accuracy, thereby enhancing operational efficiency.
   

Based on component, the open banking market is segmented into solutions and services. In 2024, the solutions segment dominates the market with 55% of market share, and the segment is expected to grow at a CAGR of over 20% from 2025 to 2034.
 

• The solutions segment dominates the open banking market primarily because it provides the core infrastructure and tools necessary for open banking implementation. These include APIs, analytics platforms, payment gateways, and identity verification systems that enable banks and third-party providers to securely access, manage, and share financial data. As regulatory frameworks like PSD2 and CDR demand standardized, compliant systems, the need for robust and scalable technological solutions continues to grow, driving the dominance of this segment.
   
• Moreover, financial institutions and fintech’s are increasingly turning to open banking solutions to accelerate digital transformation and enhance service offerings. These solutions help improve customer experience through real-time data access, personalized financial services, and seamless integrations. The demand for ready-to-deploy, customizable, and secure platforms further boosts the adoption of comprehensive open banking solutions over in-house development.
   
• In addition, the rapid pace of innovation in AI, machine learning, and API ecosystems fuels ongoing demand for solution-based offerings. Vendors are continuously upgrading their platforms to support predictive analytics, fraud detection, and advanced security features. This strategic role in enabling compliant, secure, and customer-centric services solidifies the solutions segment’s position as the market leader.
   
• For instance, in March 2025, the Financial Data and Technology Association (FDATA) and Open Banking Expo announced a media partnership to promote open finance awareness. This collaboration aims to support industry engagement and discussions around open finance through events and expert insights.
   

Based on deployment mode, the open banking market is segmented into on-premises, and cloud-based. In 2024, the cloud based category expected to dominate due to scalability, lower costs, faster deployment, and enhanced accessibility.
 

• Cloud-based holds the highest market share in the open banking market due to its scalability, flexibility, and cost-efficiency. Cloud platforms enable financial institutions and fintech’s to deploy open banking solutions rapidly, adapt to changing regulatory requirements, and scale services according to demand. This agility is crucial in a fast-evolving financial ecosystem where speed-to-market offers a significantly competitive edge.
   
• Furthermore, cloud-based solutions provide enhanced accessibility and real-time data sharing, which are foundational to open banking's API-driven structure. By leveraging cloud infrastructure, organizations can offer seamless, secure, and always-on services to customers, regardless of geography. These platforms also support easy integration with third-party providers, fostering innovation and collaboration within the open banking ecosystem.
   
• In addition, cloud deployment reduces the need for significant upfront infrastructure investment, making it especially appealing to smaller banks and fintech startups. Enhanced security features offered by major cloud providers also address concerns around data protection and compliance, further reinforcing the shift toward cloud-based open banking adoption.
   
• In May 2024, Mambu, a leading cloud-native core banking platform provider, announced a partnership with Yapily, an open banking platform. This collaboration aims to simplify open banking integration for Mambu's banking customers, leveraging the scalability and ease-of-use of cloud solutions. The cloud infrastructure adapts to changing data volumes and user needs. It enables rapid development & deployment of open banking solutions.
   

Based on end use, the open banking market is segmented into banks, third-party providers (TPPs), fintech companies, payment service providers (PSPs), insurance companies, asset management firms, SMEs and enterprises, and individual consumers. In 2024, the banks category expected to dominate due to regulatory mandates, increased investment in digital transformation, and their central role in providing secure APIs for third-party access to customer data.
 

• Banks hold the highest market share in the open banking market primarily due to regulatory requirements mandating them to share customer financial data securely with third-party providers. Regulations like PSD2 in Europe and similar frameworks globally have compelled banks to develop and maintain open APIs, placing them at the center of the open banking ecosystem. This legal obligation ensures that banks are the primary enablers of data access and financial innovation.
   
• Moreover, banks are heavily investing in digital transformation to stay competitive amid rising fintech disruption. By embracing open banking, they can offer enhanced services such as personalized financial products, faster payments, and improved user experiences. This strategic shift not only helps banks retain their customer base but also positions them as key collaborators with fintech companies and third-party providers.
   
• Additionally, banks already possess extensive customer data, infrastructure, and trust, which makes them ideal facilitators in the open banking model. Their ability to integrate advanced technologies while ensuring security and compliance further strengthens their dominant position in this market segment.
   
• For instance, in October 2024, Plaid introduced its Gateway Partner Program to assist financial institutions in achieving open banking compliance, particularly in anticipation of the forthcoming Section 1033 regulation. The program offers a streamlined, scalable solution for secure data sharing. Ninth Wave was announced as the inaugural preferred partner, providing robust API infrastructure to facilitate this initiative.
   

In 2024, the Germany region in Europe dominated the open banking market with around 22% market share in Europe and generated around USD 1.8 billion in revenue.
 

• Germany is poised to experience growth in the open banking market, driven by strong regulatory support under PSD2, rising digital banking adoption, fintech innovation, and initiatives like the Wero wallet that promote real-time payments and consumer-centric financial services.
   
• For instance, in July 2024, the European Payments Initiative (EPI) launched Wero, a digital wallet offering instant account-to-account payments. Backed by major German banks like Sparkassen-Finanzgruppe and Volksbanken Raiffeisenbanken, Wero aims to provide a unified European payment solution, enhancing the open banking landscape in Germany.
   
• Germany’s open banking market has undergone significant transformation, evolving from cautious adoption to becoming a European leader. The implementation of the EU's PSD2 directive in 2018, integrated into national law via the German Payment Services Supervision Act (ZAG), laid the regulatory foundation for open banking. Initiatives like the Berlin Group's NextGenPSD2 API standard have further standardized API connectivity, enhancing interoperability and fostering a more integrated financial ecosystem.
   
• For instance, in April 2024, Swedish fintech Brite launched its Instant Payments solution in Germany, enabling real-time account-to-account transactions. This service enhances the open banking ecosystem by providing efficient payment options for consumers and businesses.
   

The open banking market in U.S. is expected to experience significant and promising growth from 2025 to 2034.
 

• The U.S. plays a dominant role in the open banking market due to its strong fintech ecosystem, high consumer demand for digital services, advanced technology infrastructure, and innovation-driven market dynamics.
   
• The U.S. open banking market is evolving steadily, driven by a strong fintech sector, consumer demand for financial transparency, and advancements in API technology. Unlike the regulatory-led model seen in Europe, the U.S. relies on market-driven forces, where innovation stems largely from fintech firms collaborating with traditional banks. The demand for seamless digital experiences in banking, budgeting, and lending tools continues to push institutions toward open data-sharing models.
   
• For instance, in March 2025, Citizens Bank introduced a new open banking API, enabling customers to securely access their financial data through preferred apps like budgeting and accounting platforms. Built to Financial Data Exchange (FDX) standards, the API offers seamless visibility into account balances and transactions, enhancing financial planning and eliminating risks associated with outdated methods like screen scraping.
   
• The rise of third-party aggregators like Plaid and MX, as well as rising customer expectations for real-time access to financial services, are major factors in the U.S. These platforms play a crucial role in connecting banks with fintech apps, enabling users to manage finances across platforms. Financial institutions are now prioritizing data security and API standardization to build consumer trust and ensure compliance.
   
• Industry collaboration and ecosystem development play a crucial role in driving the open banking market by fostering partnerships between banks, fintechs, and technology providers. These alliances enable innovation, standardization, and interoperability, ensuring seamless data sharing and improved customer experiences while accelerating adoption of open banking solutions across the financial ecosystem.
   
• For instance, in March 2025, Mastercard was announced as the headline partner for the inaugural Open Banking Expo USA, scheduled for June 26 in New York. The event aims to unite financial leaders to discuss consumer data privacy, regulatory challenges, and the future of Open Finance in the U.S.
   

The open banking market in the China is expected to experience significant and promising growth from 2025 to 2034.
 

• China's open banking market is evolving rapidly, driven by strong government support, a tech-savvy population, and a flourishing fintech ecosystem. The Chinese government has promoted financial digitalization through initiatives like the “Internet Plus” strategy and the Digital Currency Electronic Payment (DCEP) pilot. These efforts create a conducive environment for open banking by encouraging innovation and data-sharing across financial institutions. The dominance of mobile payment platforms such as Alipay and WeChat Pay further strengthens user readiness for open banking solutions.
   
• In February 2025, China announced USD 55 billion capital injection into major banks, including ICBC, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, and Postal Savings Bank of China. This move aims to stabilize the banking sector, enhance lending capacity, and support economic growth, thereby facilitating the expansion of open banking services.
   
• One of the major drivers in China is the widespread use of APIs in banking and financial services, facilitated by advanced digital infrastructure. Tech giants like Tencent and Ant Group are actively partnering with traditional banks to create open platforms that provide personalized, real-time services. This collaboration between incumbents and tech-driven firms is fostering competitive differentiation and delivering customer-centric financial products on a scale.
   
• Moreover, consumer demand for convenience and personalized experiences continues to grow. Chinese users increasingly expect seamless digital access to banking, investments, insurance, and credit services. The proliferation of smartphones, strong data analytics capabilities, and evolving customer expectations are compelling banks to integrate open banking frameworks. Although regulatory standardization is still developing, China’s proactive digital economy policies indicate strong potential for open banking to become a core component of the country's financial services landscape.
   
• For instance, in April 2025, Ant Group agreed to purchase a USD362 million controlling stake in Bright Smart Securities & Commodities Group, a Hong Kong-based brokerage firm. The deal will mark Ant Group's first acquisition of a securities brokerage license. This move aligns with Ant Group's strategy to integrate AI technologies into financial services, enhancing personalized offerings and expanding its footprint in the open banking ecosystem.
   

Open Banking Market Share

• Top 7 companies of the open banking industry are Envestnet (Yodlee), Finicity (Mastercard), GoCardless, MX, Plaid, Tink, and Trustly around 5% of the market in 2024.
   
• Envestnet (Yodlee) focuses on delivering data aggregation and financial insights by offering an API-first platform aligned with global open banking standards. Its strategy centers on empowering banks and fintech’s with analytics-driven solutions for personalized financial services, credit risk assessment, and compliance. The company also emphasizes regulatory readiness and security to build consumer trust in open finance.
   
• Finicity, a Mastercard company, leverages its open banking APIs to facilitate consumer-permissioned data access for lending, personal finance, and digital payments. It focuses on enabling real-time financial data sharing and verification services, especially for credit decisioning and income verification. Finicity’s strategy is deeply integrated into Mastercard’s broader vision of building a secure, transparent, and scalable open financial ecosystem.
   
• GoCardless is primarily focused on recurring payments and account-to-account (A2A) payment solutions using open banking rails. Its strategy involves simplifying direct debit and instant payment collection for businesses, enabling faster settlement and lower transaction costs. GoCardless also partners with ERP and accounting platforms to embed open banking payments directly into business workflows, enhancing usability and reach.
   
• MX’s open banking strategy is centered around data enrichment and financial wellness. It provides tools for institutions to aggregate, clean, and categorize financial data, turning raw inputs into actionable insights. MX also champions secure connectivity and consumer data control, aligning its platform with the principles of transparency and personalized financial empowerment through its APIs and partnerships.
   
• Plaid’s strategy is to serve as the connectivity backbone of open banking in the U.S. and beyond. It focuses on expanding API integrations with banks and fintechs to enable real-time access to financial data. Plaid emphasizes user experience, fraud reduction, and developer-friendly tools to power use cases like budgeting apps, lending, and digital payments across thousands of platforms.
   
• Tink, a Visa company, focuses on Europe’s open banking transformation by offering payment initiation, data aggregation, and personal finance management tools via APIs. Its strategy leverages Visa’s infrastructure to enhance scale and reliability, while supporting banks and fintechs in delivering more intelligent and customer-centric financial services through compliant and secure open banking architecture.
   
• Trustly specializes in open banking-powered account-to-account payments, aiming to disrupt card-based online transactions. Its strategy involves offering merchants and platforms faster, more cost-effective, and secure payment solutions across multiple markets. Trustly emphasizes scalability, cross-border payment capabilities, and regulatory compliance, making it a preferred provider in e-commerce, travel, and gaming sectors.
   

Open Banking Market Companies

Major players operating in the open banking industry are:

• Envestnet (Yodlee)
• Finicity (Mastercard)
• GoCardless
• MX
• Plaid
• Tink
• Token.io
• TrueLayer
• Trustly
• Yapily
   

The current market strategy in the open banking market focuses heavily on ecosystem building through API standardization and interoperability. By aligning systems with open banking protocols like PSD2 and FDX, companies are ensuring secure, real-time data exchange. This fosters seamless integration between banks and third-party providers, creating a scalable and collaborative digital infrastructure to serve diverse financial needs.
 

Moreover, the major strategy involves customer-centric innovation. Financial service providers are prioritizing personalized experiences, leveraging shared customer data (with consent) to offer tailored products such as budgeting tools, loan offers, and investment insights. Enhanced user experiences are being used as a competitive differentiator, with companies investing in intuitive interfaces, mobile-first solutions, and value-added services to boost customer retention and acquisition.
 

In addition, data security and compliance also form a core strategic pillar. Firms are investing in robust cybersecurity measures, strong customer authentication (SCA), and consent management systems to build trust. Simultaneously, aligning with evolving regulations ensures legal compliance and mitigates risks, making security and transparency critical for long-term market success.
 

Open Banking Industry News

• In April 2025, fintech firm Paysend partnered with Tink, a leading open banking platform and Visa company, to enhance money transfer services through open banking technology. By integrating Tink’s advanced capabilities, Paysend now enables customers, especially across the EU to fund international transfers directly from their bank accounts. This eliminates manual data entry and extra security steps, delivering a faster, more seamless, and secure payment experience while minimizing errors and fraud risks.
   
• In October 2023, Salt Edge, a leading FinTech company, partnered with SeaPay Forge, a prominent omni-channel payment solutions provider, to strengthen open banking adoption among businesses in Saudi Arabia. This collaboration aims to enhance digital payment capabilities and support seamless, secure financial services across the region.
   
• In September 2023, Saxo Bank announced a strategic partnership with Mastercard to incorporate open banking payments into its investment platforms. This integration allows Saxo Bank customers to transfer funds directly into their investment accounts without logging into a separate banking portal, offering a streamlined and efficient user experience that reflects the growing adoption of open banking in financial services.
   
• In July 2023, Fintonic launched OpenInsights, a powerful open banking data analytics platform designed to serve enterprises and financial institutions. Known for its tailored fintech solutions, Fintonic’s OpenInsights equips organizations with advanced tools to extract actionable intelligence from open banking data. This enables data-driven decision-making, enhances customer experience, and uncovers new growth opportunities in the financial sector through fact-based insights and streamlined analytics.
   
• In June 2023, Plaid launched Beacon, a collaborative fraud intelligence network designed to help fintechs share critical insights and combat financial fraud more effectively. The initiative began with ten founding members, including Tally, Credit Genie, Veridian Credit Union, and Promise Finance, marking a major step toward improving security across the open banking ecosystem.
   
• In October 2022, GoCardless, a leading open banking provider, entered a strategic partnership with Crowdz, an SME financing platform, to integrate cutting-edge open banking technology. This collaboration enables instant cross-border payments across the UK, US, and EU through a secure infrastructure. Key features include verified mandates to prevent fraud, real-time payment capabilities, and built-in account verification. The partnership represents a major innovation in using open banking middleware to simplify processes, accelerate transactions, and improve financial operations for SMEs globally.
   

The open banking market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn) from 2021 to 2034, for the following segments:

Market, By Financial Services

• Banking & capital markets
  • Retail banking
  • Corporate banking
  • Investment banking 
• Payments
  • P2P payments
  • B2B payments
  • Bill payments
  • Cross-border payments
• Digital Lending
  • Personal loans
  • SME lending
  • BNPL (Buy now pay later)
• Insurance
• Wealth management
• Personal finance management (PFM)

Market, By Component

• Solutions
  • API management platforms
  • Banking-as-a-service (BaaS) platforms
  • Data aggregation tools
  • Customer experience platforms 
• Services
  • Integration & implementation
  • Consulting
  • Support & maintenance
  • Managed services

Market, By Deployment mode

• On-premises
• Cloud-based

Market, By Technology

• API (Application Programming Interface)
• AI & ML
• Blockchain
• Big data & analytics
• Biometrics & authentication
• IoT & edge

Market, By End Use

• Banks
• Third-party providers (TPPs)
• Fintech companies
• Payment service providers (PSPs)
• Insurance companies
• Asset management firms
• SMEs and enterprises
• Individual consumers

Market, By Business model

• API monetization
• Distributive banking
• Banking-as-a-service (BaaS)
• White-label banking

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa