Open Banking to double user base by 2021

The pandemic is increasing the need for consumers to aggregate accounts and track their financial health

Open Banking

Open Banking to double user base by 2021. Source: shutterstock.com

Juniper Research found that the total number of Open Banking users will reach 40 million in 2021, compared to 18 million a year ago.

Europe drives this significant growth, where the regulator-led approach to Open Banking has created a standardized market, with low barriers to entry. At the same time, the US feels that a lack of central regulatory intervention is limiting growth potential.

Banks must embrace Open Banking as a chance to capitalize on their ongoing digital transformation journeys and introduce innovative services enabled by Open APIs, or risk losing out to more digitally-agile competition
Nick Maynard, research author

The study also highlighted that Open Banking can be both a threat and an opportunity for traditional banks. The fact Open Banking exposes user data and access to potential competitors created an equal threat to all players in the market.

It has been identified that payments will be critical to the emerging Open Banking ecosystem, accounting for more than $9 billion in transaction value in 2024. Nevertheless, payments within this ecosystem are at an early stage.

According to the research, e-commerce is dominated by card networks, although there is potential for this role to be eroded over time by direct from account payments.

We’ve reported that Large UK bank announced unprecedented Open Banking initiative. This way, its customers can securely make payments from current accounts held with other banks from within the Barclays app.

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Categories: All materials Fintech News