Number of Open Banking users to double by 2021, study

Thus, the total number of users will reach 40 million in 2021 from 18 million in 2019. Furthermore, the research found that the ongoing Coronavirus pandemic is increasing the need for consumers to aggregate accounts and gain insight into their financial health, boosting momentum in Open Banking adoption.

This extraordinary growth is being driven by Europe, where the regulator-led approach to Open Banking has created a standardised market, with low barriers to entry. This contrasts with markets like the US, where a lack of central regulatory intervention is limiting growth potential, the research has revealed.

The research identified that payments will be critical to the emerging Open Banking ecosystem; accounting for over USD 9 billion in transaction value in 2024. Still, payments within this ecosystem are at an early stage.

The study highlights that ecommerce is dominated by card networks, but there is potential for this role to be eroded over time by ‘direct from account’ payments. The research recommends that card networks should offer Open Banking-enabled payment services to offset the risk of future disruption.