Countries across the globe differ dramatically in terms of the Open Banking development level, with many markets still either only considering it or even completely resisting the system.
However, those markets which chose to open their banking systems, either followed the regulatory approach modelled by Europe or were prompted by the market. Overall, according to recent estimations, the number of Open Banking users globally is going to accelerate through 2024 and rise more than 5 times from 2020’s figure, with the regulatory-driven Open Banking pioneer region, Europe, set to keep its top position.
The region’s Open Banking ecosystems has a clear leader – the United Kingdom. The country started the process of Application Programming Initiatives even before Europe’s regulatory PSD2 guidance came fully into force and as of March 2021 had already over 200 Third-Party Providers (TPPS) participating in the system. Meanwhile, the second most developed Open Banking country is Germany, however, by the number of TPPs the market is still far behind the UK. Moreover, consumers in Europe, and in Germany especially, are still somewhat resistant when it comes to data sharing, which creates a major barrier for the development of Open Banking. Apart from these leading markets, other European countries such as the Nordics, the Netherlands, Estonia, Lithuania and Poland are also making efforts to catch up. Meanwhile, even in such a highly developed ecosystem, there is still a certain level of heterogeneity, as some countries do not see Open Banking as a priority, at least in the near future. Europe is followed in Open Banking acceptance by the Asia-Pacific region, however the gap between the two is substantial and was not expected to close even by 2024.