Following this announcement, Konsentus’s Q2 2024 Open Banking Tracker reported an upward trajectory for the number of TPP’s that are providing Open Banking solutions in the EEA region. In the UK, the effects of a more mature market and overall changing business models have resulted in multiple TPPs losing their PSD2 regulatory permission, which reduced the UK’s total.
In the EEA area there has been consistent growth and development over the last six quarters, apart from a slight dip in June 2023. Since the end of March 2024, 8 TPPs have gained regulatory approval and 5 have had their permissions removed, which resulted in a total of 370. In the UK region, only 1 TPP became regulated in order to provide Open Banking solutions, whilst 9 others lost their regulatory permission, which resulted in a total of 197.
The figure for the EEA and the UK combined now stands at 567, and although this represents a lower number compared to Q1 2024, the 23 permission changes over the last quarter are consistent with the first three months of the year.
The report also revealed that, once again, the market is dynamic and that it is important for businesses and institutions to check data access requests both from TPP fintechs, but also credit enterprises. This is expected to ensure that the customer and business information is always safeguarded.
Included in the Q2 highlights across the EEA are details on different regions and their developments in the recent period. For example, Germany retains the top position by highest number of home-regulated TPPs, at 37, which increased its lead over Sweden in second place. Italy still has the highest number of non-domestic TPPs, with 153, which is followed by Belgium and Germany with 150.
At the same time, TPPs from 7 different EEA markets gained regulatory approvals across Q2 2023 - Belgium (1), Croatia (1) , Finland (2), Norway (1), Spain (1), Sweden (1), and Ireland (1) -, while TPPs from 4 different EEA countries had their permissions removed - Estonia (1), the Netherlands (1), Spain (1), and Sweden (2).
Latvia and Liechtenstein remained the only two markets with no home TPPs, while passporting remains strong, with the overall average number of non-domestic TPPs per market being increased by 12% over the last nine months.
According to the press release, there are now more than 100 TPPs regulated in order to provide clients and businesses with Open Banking solutions in all EEA markets, apart from Liechtenstein. Even in markets where there is an overall limited supply from domestically regulated TPPs, there are still multiple fintechs that can satisfy user demand with the needed access to optimised services. In addition, the trend for firms to grow their businesses by extending tools into new territories is set to continue.
The report also saw how emerging trends and the overall landscape is evolving. For example, if in 2019 only 48% of EEA TPPs could initiate payments on an account holder’s behalf, that figure has now surpassed the 65% milestone.
At the same time, there has also been an overall increase in international fintechs that design their product benefits in order to appeal to customers across several markets. This is why the landscape sees a development in passporting, with over 53% of EEA TPPs currently providing Open Banking tools outside their home nations. For more information about Konsentus, please check out their detailed profile in our dedicated, industry-specific Company Database.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now