Description
Countries Covered:Â Brazil, Canada, China, Germany, India, Mexico, Russia, South Korea, Turkey, UK, USA
Pages:Â 75
Publication Date:Â 19/10/2021
Questions Covered in the report:
- What is the status of Open Banking development in various countries across the globe in 2021?
- What are the key tenets of Open Banking globally in 2021?
- How is the number of Open Banking users is forecasted to change by 2024 in different regions worldwide?
- How do consumers feel about the Open Banking approach in 2021?
- What was the value of global Open Banking funding prior to the pandemic and how does it look like in 2021?
Key Findings:
Open Banking spreads beyond Europe: new yStats.com report.
Open Banking is likely to undergo a rapid increase in the Open Banking adoption rate
Countries around the world are dramatically divided on the level of Open Banking sophistication, and many markets are still only considering or even resisting the system. However, markets that decided to open their banking systems either followed the regulatory approach modelled by Europe or were driven by consumer willingness to exchange data for certain benefits. Europe, the key Open Banking region, with UK as a clear leader, is expected to dominate OB in transaction numbers for the next several years. The Asia-Pacific region follows Europe, but the adoption rate gap between the two is significant.
In Europe, the leading Open Banking market, implementation and acceptance varies
The European Open Banking landscape, based on the PSD2 legislation, is more developed than other regions globally. Moreover, the region has a clear leader – the United Kingdom, an Open Banking pioneer. As of March 2021, the country’s ecosystem had already over two hundred Third-Party Providers (TPPs) and more than three million consumers benefiting from Open Banking. Germany follows the UK in the level of Application Programming Initiative acceptance, however, by the number of TPPs the market, Germany is still far distant from the UK. Additionally, even in the leading markets, consumer resistance to data sharing remains a key barrier to further Open Banking implementation.
Several other global regions are making efforts to catch up with Europe in terms of Open Banking developmentÂ
Following the European example, other regions across the globe started developing their Open Banking ecosystems. Some such as in Australia, Mexico, Brazil, and South Africa saw regulators implementing legislation to facilitate OB. Meanwhile, others were driven by markets and only later were offered guidelines from policy makers.  This was the case in China, USA, Canada and others, as explained in the new yStats.com publication. In general, Open Banking ecosystems across the world are forecasted to extend in adoption within the coming years and additional countries are expected to connect as the system’s benefits become clearer for the regulators, financial institutions and consumers.
