The value of the global banking is set to rocket said a new report.
Valued at $7.29bn in 2018, it is expected to reach $43.15bn by 2026, growing at a CAGR of 24.4% from 2019 to 2026.
Major benefits of open banking are highlighted as:
- favourable government regulations;
- improved overall customer engagement with open banking APIs;
- surge in adoption of new applications and services.
On the downside, a lack of awareness around open banking, data security, and managing threats related to security could hamper market growth.
Yet this might be mitigated by an increase in collaborations between banks and fintech firms, creating new opportunities for the market players in the coming years.
As for the impact of the Covid-19 impact, the report concluded that the pandemic has positively affected the global open banking industry.
The outbreak of Covid-19 has increased the demand for contactless payment and payments through use of chip and pin machines, which has favored the market growth.
Several fintech companies have also gathered forces to create digital solutions via open banking and have asked for fiscal support from the government. This will help the market growth.
The report was recently published by Allied Market Research and is called “Open Banking Market by Financial Services (Banking and Capital Markets, Payments, Digital Currencies, and Value Added Services) and Distribution Channel (Bank Channel, App market, Distributors, and Aggregators): Global Opportunity Analysis and Industry Forecast, 2019–2026.”