Global Open Banking Market 2025 – 2034

Reports Description

As per the Open Banking Market analysis conducted by the CMI Team, the global Open Banking Market is expected to record a CAGR of 27.8% from 2025 to 2034. In 2025, the market size is projected to reach a valuation of USD 33.1 billion. By 2034, the valuation is anticipated to reach USD 161.5 billion.

Overview

Digital finance and standardized APIs are enhancing the pace of Open Banking market across the globe. Permission-based, secure data sharing makes it possible to make payments instantly, onboard automatically, identify fraud using AI, and connect banks, fintechs, and TPPs efficiently. Cloud-native predictive AI enhances accuracy, compliance and operational flexibility, whereas the paperless, energy efficient systems save costs and waste. With the increase in the use of API in the world, Open Banking platforms are rapidly expanding in size, velocity, and responsiveness.

Report Highlights

• North America led the open banking market with a 46.6% market share in 2035.

• Asia Pacific is expected to expand at the fastest CAGR of 28% between 2025 and 2035.

• By deployment model, the cloud-based segment led the open banking market, capturing around 65.6% of the market share in 2025.

• By deployment model, the cloud-based open banking segment is expected to grow at the fastest CAGR of 27.15% between 2025 and 2035.

• By technology, the API (application programming interface) segment dominated the market with a share of 48.5% in 2025.

• By technology, AI & ML-enabled open banking solutions are projected to expand at the highest CAGR of 27.6% during 2025–2035.

• By technology, blockchain, big data & analytics, biometrics & authentication, and IoT & edge technologies are witnessing steady adoption, as stakeholders focus on secure data sharing, advanced analytics, and real-time customer insights.

• By end use, the banks segment accounted for approximately 58.6% of the market share in 2025, driven by regulatory mandates, digital transformation initiatives, and the need to enhance customer experience through data-driven services.

• By end use, fintech companies are anticipated to grow at the fastest CAGR of 56.58% between 2026 and 2035.

• By end use, third-party providers (TPPs) and payment service providers (PSPs) are registering steady growth, supported by increasing collaboration with banks and expansion of embedded finance models.

• By business model, the API monetization segment held the largest market share of 63.5% in 2025.

• By business model, the white-label banking segment is expected to register strong growth during the forecast period, driven by rapid fintech expansion and demand for faster go-to-market digital banking solutions.

Key Trends & Drivers

• International Growth and Strategic Alliances of Major Suppliers: In 2023, the leading cross-border Open Banking platforms of Plaid, Tink and TrueLayer increased their collaboration with international banks and fintechs and enterprise platforms. These alliances enhanced real-time data connectivity, increased the reliability of APIs and quickened the implementation of payments, lending, and financial insights using Open Banking in the global market.

• The introduction of state-of-the-art AI-based Open Banking Platforms: The application of AI got more and more popular in companies to score risks in real-time, verify identities, and use fraud analytics and predictive financial models. In 2023, Mastercard implemented the AI-based consumer-permissioned data analytics to increase the accuracy level of the security and decision in the system.

• Adoption of Intelligent API Ecosystems and Cloud-Native Infrastructure: For security purposes, cloud-based API structures enhance the real-time access to data, digital KYC, and automatic compliance monitoring. In 2023, Yapily was awarded for its cloud-native Open Banking API construction that reinforced information security, flawless combination, and end user experience in both financial institutions and fintech developers.

Threats

International Launch Issues and Networking Limitations: In early 2025, a leading provider of Open Banking Services encountered problems regarding the provision of their API within the APAC region. This was primarily due to the underdeveloped cloud infrastructure, data localization obstacles, and incompatibility with the region’s predominant banks.  Vendors that lack solid partnerships with the cloud in their geography and have compliant data-sharing frameworks run the risk of losing enterprise customers that require seamless and real-time financial connections.

Growing Competition & Similar Offerings: The Open Banking sector is one of the fastest growing and most crowded areas of the fintech ecosystem. There is stiff competition with multiple banks, fintechs and technology behemoths offering off-the-shelf and virtually the same service, consent-based APIs, instant payment rails, and AI driven risk analysis. Players with slower APIs, less bank partnering, inferior security, and less fraud control will be driven out as customers migrate to platforms that offer better performance in the areas of data transfer speed, connectivity and security.

Opportunities

Entry into New Markets in New regions: The growth of digital banking across the Asia Pacific, Latin America, Africa, and Eastern Europe, regionally expanding, is contributing to the increased demand for Open Banking Application Programming Interfaces (APIs), digital identity solutions, and real-time financial data services. With regard to the aforementioned regions, the collaboration of banks, fintech companies, and global Open Banking providers for seamless payment solutions, credit scoring, and compliance automation will make such regions highly lucrative for the provision of scalable Open Banking solutions.

The Future of Open Banking: Open Banking is shifting to complete AI-based ecosystems that can detect fraud in real-time, score behavioral credit, conduct automated KYC/AML checks and make financial predictions. Combining state-of-the-art analytics and cloud-native API development will create more personalized products, less operational friction, and transform the world financial infrastructure. The capability of Open Banking to integrate information smarts and safe digitalized ecosystems makes it the heart of the new generation of financial services.

Category Wise Insights

Market by Component

• Solutions: API connectivity, payment initiation services, account aggregation, and AI-driven analytics are some of the solutions of Open Banking. These solutions allow to share data securely and in real time, to simplify financial processes, and to adhere to the regional laws. Banks and enterprises utilize these platforms to have better visibility of cash flow, transactions and financial behavior of customers.

• Services: Open Banking services are implementation, integration, consulting, and managed API services. Providers help organizations to achieve scalable and secure systems, streamline operations, stay regulatory, and extract the most value out of digital financial platforms.

By Deployment Mode

• On-Premise: Open Banking implementations enable companies to maintain control of APIs, infrastructure and sensitive financial information. Companies with high regulatory mandates or old banking infrastructure usually incline to custom on-premise systems, despite being more expensive and costly to maintain IT.

• Cloud-based: Cloud-based or SaaS Open Banking implementations have reduced initial expenditure, quicker deployment, and the capacity to scale up services. Real-time data connectivity and AI-powered analytics and automated financial processes give organizations the benefit of not having to manage IT infrastructure.

By Enterprise Size

• Small and Medium Enterprises (SMEs): With Open Banking, SMEs can streamline payment automation, gain access to real-time accounts, and simplify the integration of financial tools. The combination of the cloud-based solution’s low cost, minimal IT requirements, and reduced time to growth serves as a strong incentive in this segment.

• Multinational Corporations: Large enterprises utilize Open Banking to integrate finance, cross-border payments, and regulatory reporting across internal processes. When integrated with ERP systems and AI-based analytics, these solutions enhance compliance, streamline operations, and improve strategic outcomes.

By Industry Vertical

• BFSI: Integrated systems using APIs and data aggregation allow financial institutions and banks to offer safe payment services and real-time monitoring of compliance, with systems enhancing the transparency and efficiency of compliance monitoring.

• Retail and consumer goods: Companies in the retail and consumer goods sectors automate the collection of payments, management of accounts with suppliers, management of cash flow, and acceleration of payment cycles with banking services. AI systems make far fewer mistakes than humans, and payment processing is timely.

• IT and Telecom: Open Banking APIs by IT and telecom companies enable vendor payment, subscription billing, and service fee collections. For systems that are cloud-native, the Operational Flexibility, Reporting Accuracy, and Automated Reconciliation become possible.

• Health Care / Government / Others: In large financial domains Automated Payments, Compliance Monitoring, and Open Banking Digital Data Integrity, Secure Transparency, and Digital Processes Improving Accountability and Reducing Work Administratively.

Historical Context

Financial ecosystems enhanced by api-driven automation and intelligent, interconnected process flows. Top performing companies are embedding automation, choreographed processes, and compliance as they seek to optimize the financial processes of their organizations within an open banking environment. Digitally re-engineered and streamlined processes create an environment of agility, clarity, and strategic control over corporate expenditure. Workflows that are scalable, secure and leverage data create operational agility and environmental sustainability and underpin a digitally interconnected global financial system.

Effects of Recent Trade Policy

New trade policy initiatives and regulations on data sovereignty and the cross-border movement of information across North America, Europe, and the Asia Pacific impact the Open Banking environment to the extent of bringing about new banking services and products. New tariffs on the deployment and operational costs of providers of open banking services such as cloud services, cybersecurity devices, and API software for banking tools dictate new technology re-evaluations of the digital security technologies for compliance with jurisdiction for AI, etc. These pressures of technology and regulations compliance affect the overall framework of the Open Banking applications of design, deployment, tenanting and scaling.

Due to increased costs of compliance and changing digital regulations, many of the leading providers of open banking platforms are moving the development, support, and back-end of their systems to less expensive operational locations such as India, Vietnam, the Philippines, Mexico, and Eastern Europe. These areas have large pools of computer technology professionals, more accommodating policies for trade-in technology, and cheaper costs of cloud computing. The fintech API providers are able to remain price competitive and compliance flexible and are able to provide seamless integration of operational APIs and data sharing to banking institutions.

The increasing complexity of global regulation has further driven the integration of automated compliance engines, digital audit trails, and blockchain-based tracking solutions within open banking frameworks. Automation of digital compliance enhances the transparency of identity and consent verification and helps alleviate the challenges of cross-border compliance. Thanks to cloud computing and distributed processing, open banking service providers are well-positioned to absorb tariff impacts, manage data in a more cost-effective and efficient manner, and provide secure, scalable, and sustainable services for the frictionless exchange of financial data across borders.

Report Scope

Regional Perspective

North America: North America has developed a fully-fledged financial ecosystem, strong regulatory pressure, and advancing digital solutions, so it is a trailblazer in Open Banking. Secure APIs, AI-powered analytics, and cloud-based systems allow banks, fintechs, and businesses to support real-time payments, account aggregation, fraud detection, and predictive financial information and improve the efficiency, compliance, and satisfaction of customers.

• United States: Open Banking APIs are used by financial institutions and corporates to gain instant access to their accounts, conduct automated payments, track their transactions, and gain predictive insights to optimize their cash flow and financial planning.

• Canada: Banks and enterprises extensively rely on cloud-based Open Banking platforms to support the secure exchange of data and simplifying the initiation of payments and enhance the ability to comply with regulations.

• Mexico: The introduction of Open Banking models by corporate entities aims to improve the transparency of operations, speed up activities in terms of payments, and secure cross-border transactions.

Europe: The developed banking infrastructure, regulatory compliance, and cloud and API adoption stream fostered Open Banking in Europe. Besides real-time payments, Open Banking analytics accounts, and stream regulatory risk mitigation via AI, ML, and Smart Process Automation seamless account access is becoming common.

• Germany: Open Banking APIs for real-time payments and secured cross-border transaction processing, reporting automation, and cross-border transaction processing are used by major financial service providers and corporations.

• United Kingdom: Open Banking is used by small and medium-sized enterprises and mid-market businesses for supporting accounts, payments, real-time payments, and process optimization.

• France: Corporations use Open Banking combined with Artificial Intelligence for predictive payments, automated compliance reporting, and financial decision assistance.

Asia Pacific: The open Banking is expanding due to quick digitization, increased fintech usage, and favorable government policies. The use of cloud-native APIs and AI-based platforms makes it possible to have automated payments, real-time account verification, data aggregation, and enhanced financial transparency among banks, fintechs, and enterprises.

• China: This applies to the large corporates, which leverage Open Banking platforms to automate reconciliation, increase efficiency in making payments, and gain secure access to financial data.

• India: Banks and businesses are using AI-based Open Banking systems that make it easier to process payments, detect fraud, and increase the efficiency of workflows.

• Japan: Open Banking API in the cloud offers small and large financial institutions and companies access to instant payments, safe financial information exchange, and easy connection to the current business systems.

LAMEA: Open Banking is being adopted through the rising fintech penetration, SME financing, and increasing digital banking services. The financial workflows improve transaction transparency, operational flexibility, and compliance within cloud and AI-based analytics.

• Brazil: Using Open Banking APIs, companies can automate payments and consolidate accounts to improve operational efficiency.

• Saudi Arabia: Companies apply AI-driven Open Banking solutions to automate payments, stay compliant with regulations, and monitor finances in real time.

• South Africa: Financial institutions and businesses utilize the Open Banking to improve account access, real-time payment automation, and secure data management.

Key Developments

• In April 2025, Australian fintech company Demyst, which has clients including ANZ, NAB, and Standard Chartered banks, was acquired for $157 million USD by fraud and financial crime prevention software company Feedzai. Demyst has been dealing with Feedzai, a private equity-backed company from Portugal, for a while. Demyst was established in Hong Kong in 2010 by ex-LexisNexis managing director Mark Hookey.

Leading Players

The Open Banking Market is highly competitive, with a large number of product providers globally. Some of the key players in the market include:

• Banco Bilbao Vizcaya Argentaria S.A.
• Crédit Agricole
• DemystData Ltd.
• Qwist
• Finastra
• FormFree Holdings Corporation
• Mambu
• MineralTree Inc.
• NCR Corporation
• Others

Global Open Banking Market is developing rapidly as a result of the implementation of secure APIs, AI-based analytics, and Cloud solutions. Banks, fintechs, and businesses utilize these systems for real-time payments and also for account authenticated fraud detection/prediction and insight. The adoption of these solutions is driven by rapid transactions, improved accuracy, seamless integration, and intelligent automation. AI analytics is the driving factor for the growth of the Market.

The Open Banking Market is segmented as follows:

By Deployment Model

• On-premises
• Cloud-based

By Technology

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

By End Use

• Banks
• Third-party providers (TPPs)
• Fintech companies
• Payment service providers (PSPs)

By Business model

• API monetization
• Distributive banking
• White-label banking

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America