Open Banking Revolution: How APIs, FinTechs & Regulations Are Fueling Global Market Growth
The global open banking market size reached USD 30.0 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 127.7 Billion by 2033, exhibiting a growth rate (CAGR) of 16.59% during 2025-2033.

Market Overview
The global open banking market is rapidly evolving, reaching USD 30.0 billion in 2024 and projected to soar to USD 127.7 billion by 2033, growing at a robust 16.59 % CAGR. Fueled by regulatory mandates, rising consumer demand for personalized digital services, and seamless API-driven integration between financial players, the landscape is primed for unprecedented innovation and expansion.
Study Assumption Years
- BASE YEAR: 2024
- HISTORICAL YEAR: 2019–2024
- FORECAST YEAR: 2025–2033
Open Banking Market Key Takeaways
- The global market grew to USD 30.0 billion in 2024 and is expected to reach USD 127.7 billion by 2033, at a CAGR of 16.59 %.
- Europe leads the market, driven by PSD2 and strong regulatory support fostering collaboration.
- By services, banking and capital markets dominate, reflecting high adoption in traditional financial operations.
- On-premises deployment holds the largest share, with institutions favoring control and security.
- App markets lead distribution channels, spurred by consumers’ demand for mobile convenience and personalization.
Market Growth Factors
Technological Advancements & API Integration
Open banking is on the rise, driven by the rapid evolution of API technologies. These secure data-sharing frameworks create smooth connections between banks and fintech companies, paving the way for a vibrant ecosystem filled with innovation. Take APIs, for example—they’ve made financial data more accessible than ever, allowing institutions to roll out customized financial tools and integrate with third-party services, which in turn boosts user engagement and trust. Plus, the rise of AI and blockchain as complementary technologies adds an extra layer of security and personalization, encouraging more people to embrace these changes.
Regulatory Momentum & Policy Support
Regulatory frameworks like Europe’s PSD2 and the UK’s Open Banking mandates have played a crucial role in this industry growth. These regulations require banks to open up their APIs to third parties, creating a fairer playing field and enhancing transparency. The outcome? A competitive environment where banks and fintechs work together to develop innovative services for consumers. This regulatory support has been a game-changer for open banking, motivating both startups and established financial institutions to push ahead with digital-first solutions.
Consumer Demand for Personalization
These days, consumers are looking for financial services that are tailored just for them—and that’s where open banking comes into play. By using data shared through APIs, providers can create personalized solutions for managing money, offer investment advice, and present competitive lending options. In fact, over 60% of users are on the hunt for these customized experiences, which is pushing financial institutions to adopt innovative open banking strategies. As the demand for personalized services continues to rise, open banking is becoming the key way for the financial sector to enhance customer engagement and foster loyalty.
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Market Segmentation
Breakup by Services:
- Banking and Capital Markets – major share
- Payments
- Digital Currencies
- Value Added Services
Breakup by Deployment:
- Cloud-based
- On-premises – largest share
Breakup by Distribution Channel:
- Bank Channels
- App Markets – leading segment
- Distributors
- Aggregators
Breakup by Region:
• North America (United States, Canada)
• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa
Regional Insights
Europe is leading the charge in the global open banking scene, thanks to the PSD2 mandate that requires secure data sharing through APIs. This regulatory framework has sparked a wave of FinTech innovation, integration, and competition, turning the region into the heart of open banking and boosting both market growth and cutting-edge digital services.
Recent Developments & News
As open banking evolves, several key trends are amplifying its influence. The integration of AI and machine learning is paving the way for tailored financial recommendations, while blockchain technology enhances data security and trust. Banks are leveraging open APIs to broaden their service offerings in payments and lending, giving consumers more choices than ever. These trends highlight a significant shift towards smarter, quicker, and more secure financial services, driven by collaboration between traditional banks and fintech innovators.
Key Players
- Banco Bilbao Vizcaya Argentaria S.A.
- Clarity Group Inc.
- Credit Agricole (SAS Rue La Boétie)
- Finastra (Misys International Limited)
- Finleap connect
- Jack Henry & Associates Inc
- Mambu
- NCR Corporation
- Nordigen Solution
- Revolut Ltd
- Riskonnect Inc.
- Societe Generale
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IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provides a comprehensive suite of market entry and expansion services. IMARC offerings include a thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape, and benchmarking analyses, pricing and cost research, and procurement research.
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