Vixio, a regulatory intelligence provider, has published a report on Open Banking to offer insights into current trends and future opportunities.
The report, titled 2024 Open Banking Outlook, aims to provide an in-depth analysis of Open Banking technology, covering its benefits, regulatory environment and the trends driving its adoption in the payments ecosystem.
John Gilda, Head of PaymentsCompliance at Vixio, commented: “Our 2024 Open Banking Outlook report equips businesses with the knowledge and foresight they need to navigate this evolving landscape and capitalise on the opportunities it presents.”
Open Banking enables third parties to access consumer banking information, transaction details and other financial data via APIs, improving the customer experience by offering greater control over personal information, as well as increased portability and flexibility.
These benefits have driven the adoption of the technology across the globe, with the report stating that 65% of countries have Open Banking initiatives.
While Open Banking is gaining traction globally, Europe is leading the charge, with PSD3 poised to unify the EEA market and potentially establish a globally adopted API standard.
The continent’s leadership in Open Banking is underscored by Statista data, which projects that 64 million Europeans will use Open Banking by the end of 2024, compared to only 28 million users in the Far East and China.
In terms of the UK, Open Banking has played an important role as of late. According to the report, 217 Third Party Providers (TPP) in operation in the EEA area were based in the UK at the end of 2023, which is nearly 40%.
This number is expected to rise after the General Election on 4 July, as both Conservative and Labour manifestos support Open Banking.
Over the pond, the Consumer Financial Protection Bureau (CFPB) outlined cross-sector standards for the US Open Banking scene earlier this month, which it is seeking to further develop.
The CFPB’s proposed open banking framework aims to decentralise the market further, mirroring the UK’s approach by mandating that banks offer APIs for easy data sharing.
Gilda concluded: “Open banking is no longer a buzzword, but a global movement reshaping the financial industry.”
