Luiz Zorzella shares an article on the growth of open banking, the factors that “repress” adoption, and possible solutions.
As you probably know, worldwide, Open Banking is one of the hottest trends in financial services.
Not only is it growing at a breakneck speed, but also its success is inspiring regulators and players in other sectors like finance and insurance who now wonder how to replicate the model.
This article is a high-level review of what is happening in Open Banking today.
As I said, Open Banking is growing. To understand how fast it grows, consider that the UK (the pioneer in adopting it) formally started this journey less than three years ago, followed by Hong Kong, the EU, South Korea and Singapore. In the US, the Consumer Financial Protection Bureau joined the race in 2019. Twenty other countries followed suit, including Canada, Australia, India, Japan, Israel and India.
As a result, high growth rates in each market are being compounded by the entry of new markets.
For example, in Europe, when a market opens, it has explosive growth, which tends to stabilize in the single digits range (per month) once it reaches ~8 API calls per inhabitants per month. But, as the UK “stabilizes”, new entrants like Italy, Germany and France push the averages up.
Key points include:
- Screen scraping solutions by Fintechs
- Emerging intermediaries
Read the full article, Open Banking Market Unleashed, on Amquant.com.