Open banking usage to grow 470 percent over 4 years: Juniper

Open Banking usage will grow by 470 percent over the next four years, with the total number of API calls generated via Open Banking to exceed 580 billion by 2027, from 102 billion in 2023, according to new Juniper research.

The study, Open Banking: Opportunities, Competitor Leaderboard and Market Forecasts 2023-2027 from Juniper Research, found that given Open Banking’s low consumer awareness, infrastructure vendors must work with the wider ecosystem to fully educate users and ensure they understand the benefits that sharing data can bring.

It also found that strong interest in new Open Banking-based services, such as personal financial management (PFM) tools and account access for underwriting for loans and credit, is driving this growth as users seek to gain better control of their finances across different accounts, exacerbated by the impact of the cost-of-living crisis.

Europe’s share of API calls predicted to be 70 percent of the global total in 2027.

Europe has the best-established set of API connections of any region, having deployed Open Banking rails as part of PSD2.

Deployments are now becoming more advanced and covering a greater number of banking services than ever before, such as credit cards or mortgages, creating significant opportunities for vendors to explore.

Nick Maynard, research co-author at Juniper Research said, “Europe has led the way on Open Banking, and is an example of how regulator-led approaches can stimulate innovation. As a well-established market, Europe’s growth rate will dip compared to others, but it will still serve as an innovation hub for Open Banking development.”

Latin America’s number of API calls is set to grow by over 1,270 percent between 2023 and 2027; generating significant opportunities.

Broader access to APIs and stronger consumer awareness will drive growth, as well as additional roll-outs, such as within Colombia.

Juniper Research recommends that vendors get involved in the earliest stages of Open Banking roll‑outs in new countries, to maximise their early-mover advantage.