Open Banking users to double by 2021, as consumers seek deeper financial insights

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. For more insights, download the whitepaper: Seizing the Open Banking Opportunity.

The new research, Open Banking: Opportunities, Challenges & Market Forecasts 2020-2024, identified that Open Banking can be both a threat and an opportunity for traditional banks. While Open Banking exposes user information and access to potential competitors, this threat is equal to all players in the market. As such, the research recommended that established banks create new Open Banking services that provide user benefits, and attract customers from less innovative competitors.

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. However, payments within this ecosystem are at an early stage. The study highlighted that ecommerce is dominated by card networks, but there is the potential for this role to be eroded over time by ‘direct from account’ payments. The research recommended that card networks should offer Open Banking-enabled payment services to offset the risk of future disruption. 

Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.