Open Banking
Open Banking
November 9, 2021
8 Min

Open Banking to Exceed $116 Billion in 2026


Until 2020, Open Banking has grown at a consistent rate globally. However, the global pandemic, innovation in the payments industry, increased trust in Open Banking technology, and new regulatory initiatives have all contributed to a significant acceleration in the speed of adoption worldwide. According to a 2021 study by Juniper Research, the value of global payment transactions facilitated by Open Banking will exceed $116 billion by 2026. This projected value represents a 2,800% growth rate in the next 5 years—2021 is projected to generate $4 billion.

What is Open Banking?

Open Banking is a secure way for banks to share financial data and services with third-party providers (TPPs) through the use of application programming interfaces (APIs). Central to the development and evolution of Open Banking is the idea of putting consumers in control of their financial data and empowering them to access better services and products from financial providers.

For more information on all things Open Banking and to better understand the state of Open Banking around the world, check out our eBook: Open Banking: Who, What, When, Where, and Why.

Governmental Support for Open Banking in the US

A huge part of the anticipated growth for the next couple of years can be attributed to support from the United States government. The American government supports the healthy competition that is being created in the current Open Banking movement and wants to take a more active role in fostering this. However, the complex nature of the US financial landscape has slowed Open Banking’s growth in comparison to Europe and other regions.

Still, earlier this year President Biden issued an Executive Order aimed at tackling monopolization across various industries. An important section on Banking and Consumer Finance includes language to increase the difficulty of bank mergers and allow customers to regain control of their financial data from banks. This represents a small but pivotal step to encourage the growth of Open Banking, which ultimately puts the consumer in control of their financial data.

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