The simplicity of utilisation and emerging use cases will predictably drive the open banking growth, helping unlock its full potential
A new report from Juniper Research, Open Banking: Opportunities, Competitor Leaderboard & Market Forecasts 2023-2027, predicts that global open banking payment transaction values will exceed $330 billion globally by 2027, growing up enormously from $57 billion in 2023.
Taking into consideration the simplicity of the open banking technology, the study concludes that new use cases will emerge such as bill payments. Thus, open banking-enabled tax bill payments have been already introduced in the UK. As the novel use case expands to other regions, it’s expected to account for more than $59 billion globally in transaction values by 2027.
Other high-potential open banking use cases include full integration with e-commerce marketplaces.
Additionally, the research forecasts that educating consumers about the security and benefits of open banking will raise awareness and catalyse market growth. So far, the moderate growth has been stipulated by consumer fears and misconceptions regarding the potential misuse of financial data.
Gaining consumer trust is one of the biggest challenges for open banking system participants as third parties are granted access to sensitive data. Therefore, the research suggests open banking vendors must educate consumers, and provide greater transparency about data privacy and security procedures.