Strategic Intelligence: Open Banking
Description
Strategic Intelligence: Open Banking
Summary
This report identifies the key players within open banking, covering both direct-to-consumer providers and technology vendors/partners. It offers a definition of open banking located within relevant regulatory and legal context. The trends section identifies the key developments expected to shape the evolution of the theme across the next 12-24 months. The industry analysis section profiles open banking progress globally, identifying 61 countries with some type of regime in development or already live, as well as providing regional commentary to compare and contrast paths and progress. We also identify three primary commercial opportunities related to open banking initiatives, and conclude with firm-level analysis summarizing the competitive position of key players within this theme.
Open banking is now a truly global phenomenon, but paths and progress vary. It is not just the style of intervention that differs-top-down, bottom-up, or some combination-but the scope, with substantial variation across which products and providers open banking applies to, the breadth and depth of information to be shared, and exactly what operations are included. In many markets, while it is not always clear what level of consumer adoption was originally hoped for, rates of approximately 10% (which have prevailed in the UK, for example) are considered underwhelming by some. In response, many jurisdictions now seek to increase the perimeter of in-scope data and products-not just from open banking (current accounts, savings, some lending products) but to open finance (mortgages, investments, and pensions), and to open data more broadly. This promises to increase the speed and scale of disruption, as it will enable data to exist independent of the product, process, or provider it was previously confined to, and be reconstituted in ways that could render entire products, processes, or providers redundant.
Scope
Summary
This report identifies the key players within open banking, covering both direct-to-consumer providers and technology vendors/partners. It offers a definition of open banking located within relevant regulatory and legal context. The trends section identifies the key developments expected to shape the evolution of the theme across the next 12-24 months. The industry analysis section profiles open banking progress globally, identifying 61 countries with some type of regime in development or already live, as well as providing regional commentary to compare and contrast paths and progress. We also identify three primary commercial opportunities related to open banking initiatives, and conclude with firm-level analysis summarizing the competitive position of key players within this theme.
Open banking is now a truly global phenomenon, but paths and progress vary. It is not just the style of intervention that differs-top-down, bottom-up, or some combination-but the scope, with substantial variation across which products and providers open banking applies to, the breadth and depth of information to be shared, and exactly what operations are included. In many markets, while it is not always clear what level of consumer adoption was originally hoped for, rates of approximately 10% (which have prevailed in the UK, for example) are considered underwhelming by some. In response, many jurisdictions now seek to increase the perimeter of in-scope data and products-not just from open banking (current accounts, savings, some lending products) but to open finance (mortgages, investments, and pensions), and to open data more broadly. This promises to increase the speed and scale of disruption, as it will enable data to exist independent of the product, process, or provider it was previously confined to, and be reconstituted in ways that could render entire products, processes, or providers redundant.
Scope
- GlobalData has identified over 61 countries that now have some form of open banking initiative live or in development. GlobalData sees three immediate commercial opportunities for incumbent providers: (1) enhancing existing products and processes; (2) building a B2B data analytics business or API marketplace; and (3) various types of “as a service” or embedded finance capabilities.
- There is little evidence worldwide that top-down open banking delivers overnight transformation. Typically, banks appear to treat open banking as a compliance cost rather than a new business opportunity, especially given limited initial bank participation, tech maturity, and regulatory understanding.
- While not a regulatory mandate, the bank-as-a-service and embedded finance trends are very closely related to the technology and mindset change driven by open banking, so are often included as part of the overall market opportunity.
- GlobalData’s Strategic Intelligence is a single, integrated global research platform that provides an easy-to-use framework for tracking all themes across all companies in all sectors. This report is essential for senior executives at financial services companies to understand the critical benefits from integrating open banking into their operations.
- Specifically, readers will understand the universe of players mapped to key market opportunities, identify the key trends shaping open banking worldwide, and learn about the differing responses of banks and tech vendors to exploit key market opportunities.
Table of Contents
- Executive Summary
- Players
- Thematic Briefing
- What is open banking?
- How is open banking delivered?
- How is open banking evolving?
- Trends
- Technology trends
- Macroeconomic trends
- Regulatory trends
- Industry Analysis
- Open banking adoption worldwide
- Regional overview: Europe
- Regional overview: North America
- Regional overview: Asia-Pacific
- Regional overview: Latin America
- Regional overview: Middle East and North Africa
- Timeline
- Signals
- M&A trends
- Venture financing trends
- Patent trends
- Company filing trends
- Hiring trends
- Value Chain
- Direct-to-consumer
- Future adoption
- B2B data / Marketplaces
- Bank-as-a-service (BaaS)
- Monetizing new business models
- Companies
- FS providers
- Tech providers
- Sector Scorecards
- Retail banking sector scorecard
- Who’s who
- Thematic screen
- Valuation screen
- Risk screen
- Glossary
- Further Reading
- GlobalData reports
- Our Thematic Research Methodology
- About GlobalData
- Contact Us
- List of Tables
- List of Figures
- List of Figures
- Figure 1: Who are the leading players in the open banking theme, and where do they sit in the value chain?
- Figure 2: The relationship between open banking, open finance, and open data
- Figure 3: Global rollout of open banking, open finance, and open data initiatives
- Figure 4: The open banking story
- Figure 5: Venture financing for open banking increased steadily from 2018 and then flip-flopped
- Figure 6: Open banking filings far exceeded open banking grants in 2022 onwards
- Figure 7: Mentions of open banking in company fillings have been in steady decline since 2019
- Figure 8: Open banking hiring peaked in 2022
- Figure 9: ING has hired the most open banking expertise
- Figure 10: The open banking value chain
- Figure 11: Technology factors have been the most increased barrier to open banking (2023 to 2024)
- Figure 12: The as-a-service open banking value chain
- Figure 13: Embedded finance value chain
- Figure 14: Who does what in the retail banking space?
- Figure 15: Thematic screen
- Figure 16: Valuation screen
- Figure 17: Risk screen
- Figure 18: Our five-step approach for generating a sector scorecard
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