Years ago, the first iteration of open banking was born in Europe, in the form of Payment Services Directive and later, the revised PSD2. These sets of regulations paved the way for a service that would gain steam around the world, offering companies the ability to access client banking information (with the clients’ consent) and make informed decisions about clients based on that information.
As the years marched on, open banking spread beyond Europe to parts of Asia, South and North America, Africa and Australia. The growth was spurred by a number of things, including the push for more digital banking in the wake of COVID-19, and, simply, the convenience of the all-online service.
But as open banking continues to become a favored practice globally, few places have yet to surpass Europe, the birthplace of – and hub for – open banking technology. This year, experts will continue to look toward the future of open banking and digital finance in light of the PSD2 consultations this summer, and it’s important to see how the practice has grown.
Now, as we kick off 2023 and what is sure to be an exciting year in the world of digital finance, we wanted to do an in-depth look at that history.
We’ve gathered statistics from various market reports over the last few years that show how popular open banking has become in Europe and – importantly – what experts think is in store for its future.
Here’s a look at the numbers:
Europe makes up 49% of all open banking users
UK hits 5 million user milestone
European users expected to reach 63.8 million in 2024
Globally, a 50% average annual rate of growth
Europe accounts for 46% of global API product offerings
UK’s API calls increased to over 1 billion per month in four years.
Europe has 2 fintechs per 1 million people
Over 300 TPPs received approval to provide open banking services between 2019 and 2022
Experts say adoption of open banking services will double by 2027
Scoring models analyze collections of data to return a single metric indicating how creditworthy a potential client is
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