Countries Covered: Germany, Russia, UK.
Publication Date: 22/02/2023
Questions Covered in the report:
- What are the top benefits that financial executives see in terms of payment initiation services in Europe as of March 2022?
- What are the top barriers that financial executives in Europe face when implementing payment initiation services as of March 2022?
- What was the forecasted number of open banking third-party providers in Europe as of March 2022?
- What was the number of successful open banking payments in the UK as of March 2022?
- What was the total number of third-party financial service providers in Germany as of June 2022?
Open banking soared in Europe, with Germany, UK, and Sweden being the top 3 open banking markets in Europe: new yStats.com report.
Open banking is being embraced across the globe, with Europe leading the way
The rise in digital readiness and consumer awareness of the concept of open banking has encouraged regulators globally to implement the open banking initiative rapidly. Thus, the market size of open banking is forecasted to witness a robust double-digit CAGR between 2019 and 2026, as stated in the new yStats.com report. The transaction value of payments facilitated by open banking is also expected to see significant growth, with forecasted values reaching a figure in the billions of euros by 2026. Even though the implementation of open banking across regions has been successful, the growth pattern of the concept differs, with Europe being the front-runner in the introduction and development of open banking. In 2021, Europe had the highest number of open banking products and platforms compared to other regions, as mentioned in the new yStats.com report. The UK, Germany, and Sweden were the most developed countries in terms of the maturity of open banking in 2022. Nevertheless, other countries such as France, Lithuania, and the Netherlands are making improvements to their API standards, focusing on consumer awareness, regulatory framework, and monitoring and enforcement of open banking. Furthermore, the share of financial executives who had a positive attitude towards open banking also increased notably from 2019 to 2021. For most of the financial executives in Europe, open banking marked the revolution of the banking system, whereas nearly three-quarters had already invested or planned to invest in the technology in the next 12 months as of March 2022.
UK is the frontrunner in open banking initiatives, with most of its population estimated to use open banking by 2023
Established in 2017, the open banking sector in the UK has seen significant growth over the years, with estimates showing that most of the population is likely to use open banking as of September 2023. Additionally, the service benefits more than half of the country’s small businesses, as it provides another innovative payment option to credit and debit cards, according to a new report from yStats.com. The growth of open banking services in the UK can be attributed to the highest number of third-party providers centered in the UK and the country’s advanced digital readiness. In terms of the open banking-enabled services, such as account information service and payment initiation service, the share of small businesses using account information service was higher compared to retail users adopting these services as of March 2022. Furthermore, the value of successful payments via open banking has gradually increased since March 2021, reaching a value in the millions as of March 2022. The number of open banking users has also been growing since November 2019, with the number of live-to-market open banking-related services reaching a triple-digit number as of March 2022, according to the new yStats.com report.