Open Banking Market Size, Share & Trends Analysis Report By Service Type (Account Information Services (AIS), Payment Initiation Services (PIS), Data Enrichment & Analytics Services, Value Added Financial Services APIs), By Deployment Model (Cloud-based, On-premise, Hybrid), By End Use Industry (Retail Banking, Corporate & SME Banking, Insurance, Wealth & Asset Management, Lending Institutions, Others) and By Region (North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2026-2034

Open Banking Market Trends

Shift from isolated banking products to API-driven financial ecosystems

Financial services are transforming, with banks offering their products through standardized API connections that create interconnected financial ecosystems. Banks used to manage customer data within their own systems, which prevented them from sharing information. Banks use open APIs to provide customer data to certified third-party vendors who have received customer approval, which allows users to manage their various bank accounts and access shared financial information while using multiple services. The new system allows banks, fintech, and insurance companies to develop services together by sharing their data resources instead of working independently.

Rapid expansion of real-time payments and account-to-account transactions

Open banking uses payment initiation services to create real-time account-to-account payment systems, which do not require standard card networks. The APIs allow immediate money transfers between bank accounts, which enable merchants to receive payments and businesses to handle subscription payments and recurring financial operations. Businesses now prefer open banking payments because they provide faster money settlement, reduced transaction costs, and better cash flow management.

Open Banking Market Drivers

Need for strong customer authentication (SCA) for enhanced transaction security and fraud reduction drives market

The security framework of banking solutions has received major improvements through the implementation of strong customer authentication, which reduced electronic payment fraud and data access fraud risks. These platforms require customer consent and transaction authorization through multi-factor authentication, which establishes better security systems than most traditional payment and data-sharing methods. The enhanced safety of transactions has built trust, which leads banks, merchants, and consumers to adopt newer payment systems and data services, thus driving market expansion and enabling broader commercial use throughout financial ecosystems.

Evolving regulatory framework supports market growth

The policy framework for banking solutions keeps evolving to maintain the necessary security protocols for emerging technological and business needs. The current updates to data-sharing and payment initiation and financial access regulations (e.g., PSD3, PSR, and FIDA) enable banks and third-party providers to develop advanced services that include embedded finance, recurring payments, and cross-sector data integration. Regulatory changes create a more predictable business environment, which leads to increased infrastructure spending, enabling market growth.

Market Restraints

Cybersecurity and data breach risks restrain market

The adoption of new banking frameworks creates more security risks because financial institutions share customer information through their multiple APIs, which connect with growing third-party systems. The system introduces new vulnerability points that occur through API connections, consent management processes, and vendor relationships. This leads to higher risks of unauthorized access, credential theft, and data breaches despite the existing protection measures. The Nupay incident demonstrated the vulnerability of banking systems through third-party integrations. It also showcased that a weak fintech partner could lead to the loss of sensitive banking data. Thus, newer transaction frameworks face regulatory investigations and higher compliance expenses, which extend the time needed for third-party partnerships and result in decreased trust from banks and customers toward open banking service usage.

Market Opportunities

Commercialization of premium data and value-added API services offers growth opportunities

Open banking data has become a key resource for building high-value revenue streams, including cash-flow analytics, alternative credit insights, transaction intelligence, and fraud monitoring tools used by banks, lenders, insurers, and merchants. The market now adopts subscription-based and usage-based pricing systems to generate revenue from advanced data products instead of selling basic access because businesses experience rising API usage and connected account growth. The new approach generates consistent income streams with enhanced financial returns to create a sustainable business ecosystem for banking networks.

Technological Landscape

• Plaid is a leading connectivity platform that enables secure access to financial data and account linking across thousands of institutions for apps and services.
• Tink (Visa-owned) helps in comprehensive financial data aggregation and enrichment, supporting personalized insights and seamless integration for European and global providers.
• TrueLayer provides robust payment initiation and data access APIs, guiding businesses to build efficient account-to-account services and user-centric financial tools.

Regional Analysis

Europe led the market in 2025, with a revenue share of 41.6%. This is due to the adoption of open banking standards and the engagement level of the traditional banking sector and fintech industry in these standards. The API maturity level is high, third-party providers are highly integrated, and there is consumer trust for consented data sharing in the European market, leading it to maintain the leading market position. Other use cases, such as account aggregation, embedded finance, and open banking-enabled payment services, have matured due to digital banking infrastructure, adding further to this lead.

The UK market growth is aided by a strong usage rate of open banking-enabled applications and an active contribution from digital banking institutions and payment companies. There is a rapid increase in account-to-account transaction volumes and banking-based financial management services in retail/SME banking. A well-developed fintech ecosystem with more streamlined API monetization is also becoming integral in advancing market growth in the country.

Asia Pacific

The Asia Pacific market is expected to lead the global market with a CAGR of 31.2% during the forecast period, led by the adoption of digital banking and mobile financial systems. The market is open to adopting innovative banking solutions to enhance financial inclusion, alternative credit scoring, and real-time payment systems. The use of super apps, digital payment systems, and lending through APIs has increased the need for newer banking solutions.

The Indian market is growing at a rapid pace owing to the widespread adoption of digital financial services. Many lending and payment systems are now using APIs, which are creating interest in providing instant credit access, customized financial services, and easy account aggregation services in the banking system. The penetration of smartphones in India and the collaborations between banking and tech players are also driving the market growth in the country.

Regional Market Share (%) in 2025

Source: Straits Research

North America

Open banking in North America is experiencing increased growth as a result of the accelerated adoption of financial services via application programming interfaces (APIs). The financial institutions in this region are increasingly adopting this concept to offer improved experiences to their consumers while also providing them with access to real-time financial data. The cooperation between financial institutions and fintech players, as well as increased acceptance by consumers of data-share-dependent services in the US and Canada, is facilitating the increased growth of the market.

The US market is driven by the rising commercialization of account-to-account transactions and the use of data-driven lending services. The integration of open banking APIs between banks and fintech companies is helping them offer instant lending decisions, subscription payments, and cash flow lending for consumers as well as small businesses. The rising adoption of digital wallets, buy now pay later services, and embedded finance solutions in e-commerce and enterprise applications is further widening the market growth.

Latin America

The Latin American market is taking efforts toward financial digitalization and inclusion projects. Financial institutions are now utilizing open banking structures for new customer acquisition in underbanked communities, alternative credit scoring, and digital payments. The rising mobile banking platforms and payment infrastructure within Latin America are driving demand for data-sharing infrastructure.

The Brazilian industry is growing due to the high adoption of online banking platforms by consumers as well as the increasing use of open banking-enabled personal finance and loan mobile applications. Financial institutions are actively utilizing the concept of shared financial data to provide customized loan options, instant budgeting services, and smooth payment options to the increasing population of the country.

Middle East and Africa

The Middle East and Africa market is moving forward because banks are modernizing old technologies and building API architecture to support digital transformations. The area is witnessing rising adoption of open banking to support digital onboarding, real-time payment services, and cross-border financial services. Increasing fintech activities and a need for a safe and interoperable finance platform are driving the market.

The UAE market is emerging as banks and fintech companies implement open banking solutions to facilitate digital wallets, SME loans, and embedded banking services. The adoption of open APIs is accelerating among financial institutions to connect with e-commerce platforms, travel-related services, and retail systems. The UAE is set to become a regional market due to its very high digital maturity level, significant fintech engagement, and rising demand for smooth financial experiences among consumers.

Service Type Insight

The Account Information Services (AIS) segment accounted for 52.8% of the open banking market share in 2025, driven by the increasing need for real-time financial insights and seamless account aggregation. Growing adoption of AIS by lenders, insurers, and wealth platforms for cash-flow analysis, risk assessment, and personalized financial services has further strengthened its market leadership.

The Payment Initiation Services (PIS) market is expected to grow at a CAGR of 30% during the forecast period. This growth can be attributed to the growing demand for real-time, account-to-account transactions, with an inclination towards low-cost payment options as an alternative to card transactions, as well as an increasing acceptance from merchants of API payment solutions.

By Service Type Market Share (%), 2025

Source: Straits Research

Deployment Model Insight

Cloud-based accounted for 52.4% of the deployment model segment in 2025. Cloud-based platforms are gaining acceptance from the financial community as they support scalable, more adaptive, and cost-effective solutions that meet the dynamic needs of API-enabled sharing of virtual assets. Cloud-based platforms offer rapid integration with third-party services.

The hybrid segment is expected to register considerable growth during the forecast period due to the increasing need for regulatory and data sovereignty demands being combined with cloud flexibility. Banking institutions are gradually shifting toward hybrid deployment models to store sensitive data on-site or on cloud platforms.

End Use Industry Insight

The retail banking segment had a market share of 34.6% in 2025, driven by the adoption of open APIs to improve consumer banking experience. Retail banks are also using account information services to enable account aggregation, personal finance management, balance visibility, and product recommendations.

The lending institutions segment is expected to grow at a CAGR of 29.6% during the forecast period. Open banking data adoption enables cash-flow-based lending, instant credit decisions, and alternative credit scoring methods. Lenders can now improve their risk management processes while expanding credit access due to increasing demand for embedded lending solutions and real-time borrower financial data access.