Open Banking Market size is expected to be valued at USD 16,673.4 million in 2022, growing at a 22.1% CAGR from 2022 to 2028. The open banking market comprises sales of open banking services by units (organizations, sole traders, and partnerships) that unite banks, third parties, and technology suppliers, allowing them to exchange data easily with safety for the benefit of their consumers. The open banking market is driving by the increasing usage of online payment platforms, shifting towards new environment of the payment system, rising application of e-commerce platforms, enhancing broadband connectivity, and the increasing acceptance of application programming interfaces (APIs). Furthermore, online services such as Zelle, Venmo, and PayPal provide services regarding online payment, and APIs to manage recurring billing, and these APIs are regularly used in open banking payments. These are some other factors to propel the market growth over the forecast period. The increasing incidences of cyber-attacks and online frauds are anticipated to hindered the growth of the market during the forecast period. Moreover, a considerable increase in alliances of banks and service providers with fintech workers is expected to eliminate some challenges by implementing technologies such as AI and machine learning to detect suspicious activities effectively and also to improve the offered services. Furthermore, the huge investment in digital banking is anticipated to offer attractive growth opportunities for the global open banking market. For instance, to promote the development of digital banking and open finance, the Arab National Bank (ANB), a financial institution in Saudi Arabia, integrated the open hybrid cloud platforms of Red Hat in December2021.
In Dec 2021, the Arab National Bank (ANB), a financial institution in Saudi Arabia, integrated the open hybrid cloud platforms of Red Hat to promote the development of digital banking and open finance.