Open Banking 2021 – Thematic Research

Powered by

All the vital news, analysis, and commentary curated by our industry experts.

Open Banking Market Overview

Open banking creates a multidimensional view on what the core value in banking is. No longer just interest-bearing products, but data, technology; and not just to end users, but to businesses, new entrants, and other banks. The ability to disaggregate component pieces of value, and to distribute them in multiple forms, becomes a core competency in the open banking era. Financial services regulators around the world are increasingly concerned with promoting competition and innovation in banking, reducing barriers to entry, and empowering consumers. The provision of banking services in most developed markets has traditionally been dominated by a few large incumbents, leading to a landscape characterized by inertia and a lack of dynamism. New entrants have found it difficult to break into the banking market, and therefore, competition has been limited, leading to sub-optimal outcomes for consumers. In response to this situation, financial services regulators around the world have tried various initiatives to boost competition and consumer choice.

Open banking seems too significant and far-reaching strategy. Here, consumers have the power to share their account and transaction data with chosen third parties. The favored method for sharing banking data is through APIs, which are simply sets of instructions that allow an IT system (such as one belonging to a bank) to communicate with another IT system (such as one belonging to a fintech provider). In order to minimize compatibility issues, APIs are typically designed around common standards governing the security, formatting, transmission, and accessibility of data.

What are the market dynamics in open banking sector?

Technological trends: Cloud migration to enable secure openness, unbundling of the value chain drives ‘platformification’, AI-driven analytics, payment initiation service providers (PISPs) are few of the technological trends in the open banking. Open banking offers clear opportunities for enhanced personalization across all elements of consumer interaction by giving algorithms more data to limit bias and enhance predictive power. Due to COVID-19, the volume of fraudulent activity has significantly increased. To help protect data, a growing number of companies store their data on cloud platforms and implement machine learning to take a more proactive approach to threat detection and identify a wider variety of attack vectors across their network and platform.

Macroeconomic trends: Open banking initiatives the world over lower barriers to entry, around access to bank data and in allowing niche players to partner to ‘re-bundle’ banking and represent a more viable alternative to incumbent full-service providers. Research from the Open Banking Implementation Entity (OBIE) and Ipsos MORI showed that 50% of SMEs surveyed had begun using open banking since the start of the pandemic. 

Regulatory trends: A transition to an open data economy will require that banks invest in advanced analytics tools that enable them to aggregate external datasets and customer-mapped data. Perhaps even more importantly, banks will need to drive a culture of data-sharing and data-driven decision-making across the business, making use of machine learning and artificial intelligence to enrich insights.

What are the segments in the open banking value chain?

D2C: D2C includes a wide range of existing bank products and services but enhanced by personalization and improved security and UX (on account of API use instead of screen-scraping or client-side aggregation). These include but are not limited to credit decisioning/profiles, payments, onboarding, aggregation, and spending insight.

As a service: Within BaaS, there are pure-play BaaS banks (Solaris) and providers that also have a D2C model (Fidor, BBVA, etc.). Typically, these players use D2C as a proof of concept for the B2B proposition. Within B2B BaaS, we split into two categories: those offering the banking license and those focusing on the underlying technology capabilities. Within the banking license BaaS provision, providers typically focus on plugging providers into local infrastructure to support domestic/international payments, card networks, bond markets, equity markets, and Treasury.

B2B/B2B2C: B2B services typically include various types of open banking-enabled data sold in aggregated, anonymized form to third parties to support commercial objectives. It can also include developer portals, where third parties have access to bank data in a sandbox environment to develop new and innovative services for the bank’s customers or as a standalone proposition to be sold by that new entrant or startup. In terms of bank capabilities, this creates a series of channel management and UX priorities around APIs as apply for any other channel (mobile, online, etc.).

Marketplace/platform: ‘Marketplace’ and/or ‘platforms’ are heavily overused, nebulous terms within financial services. Here, we refer to any bank proposition that includes third party distributors for product or service. These can be marketplaces of loans from banks but also non-bank providers.

Open banking sector, by segments

Open banking sector, by segments

For more segment insights, download a free report sample

Which are the key players in the open banking sector?

Backbase, Finastra, Mambu, Thought Machine are few of the players in various product areas of open banking sector.

Open banking sector, by key players

Open banking sector, by key players

To know more about key players, download a free report sample

Market report scope

Segments in the value chain D2C, As a service, B2B/B2B2C, and Marketplace
key players Backbase, Finastra, Mambu, and Thought Machine

Scope:

  • The UK has the highest number of open banking licenses issued to payment initiation service providers (PISPs), which enable users to withdraw money directly from their accounts; same for account information service providers (AISPs), which let users see all their payment account information from different bank accounts in one place (i.e., aggregation).
  • Globally, 70% of 75+ customers do not want third-party access to accounts regardless of what the service benefit may be (insight, credit, etc.), with that number falling to 20% for younger customers.
  • Where customers do want open banking, it’s primarily for heightened security, such as more secure online payments through PISPs for online purchases.

Reasons to Buy

  • Understand key technology, macroeconomic, and regulatory trends characterizing open banking.
  • Access the latest consumer survey data on evolving channel behavior, provider preferences, and product holdings.
  • Identify the leading digital transformation efforts based on cost income and customer satisfaction metrics.
  • Access firm-level/case study insights on leading players within the open banking theme.

Amazon
Google
Facebook
Apple
Alphabet
Tinkoff Bank
AIB
Capital One
MyBank
Monzo
NatWest/RBS
Danske Bank
DBS
TSB
BBVA
Citibank
mBank
Revolut
Credit Agricole
Barclays
CreditLadder
NovaCredit
Experian
Equifax
TransUnion
Tink
Bud
Plaid
TrueLayer

Table of Contents

| Contents

Executive Summary

Players

Thematic briefing

Trends

Industry analysis

Value chain

Companies

Sector scorecards

Glossary

Further reading

| Our thematic research methodology

| About GlobalData

| Contact Us

Frequently asked questions

Open Banking 2021 – Thematic Research thematic reports
Currency USD
$995

Can be used by individual purchaser only

$1,995

Can be shared globally by unlimited users within the purchasing corporation e.g. all employees of a single company


Undecided about purchasing this report?

Enquire Before Buying Request a Free Sample

Get in touch to find out about multi-purchase discounts

reportstore@globaldata.com
Tel +44 20 7947 2745

Every customer’s requirement is unique. With over 220,000 construction projects tracked, we can create a tailored dataset for you based on the types of projects you are looking for. Please get in touch with your specific requirements and we can send you a quote.

Sample Report

Open Banking 2021 – Thematic Research was curated by the best experts in the industry and we are confident about its unique quality. However, we want you to make the most beneficial decision for your business, so we offer free sample pages to help you:

  • Assess the relevance of the report
  • Evaluate the quality of the report
  • Justify the cost

Download your copy of the sample report and make an informed decision about whether the full report will provide you with the insights and information you need.

Below is a sample report to understand what you are buying

See what our customers are saying
testimonial-image
testimonial-image
testimonial-image
testimonial-image
testimonial-image
testimonial-image
testimonial-image

“The GlobalData platform is our go-to tool for intelligence services. GlobalData provides an easy way to access comprehensive intelligence data around multiple sectors, which essentially makes it a one-for-all intelligence platform, for tendering and approaching customers.

GlobalData is very customer orientated, with a high degree of personalised services, which benefits everyday use. The highly detailed project intelligence and forecast reports can be utilised across multiple departments and workflow scopes, from operational to strategic level, and often support strategic decisions. GlobalData Analytics and visualisation solutions has contributed positively when preparing management presentations and strategic papers.”

Business Intelligence & Marketing Manager, SAL Heavy Lift

“COVID-19 has caused significant interference to our business and the COVID-19 intelligence from GlobalData has helped us reach better decisions around strategy. These two highlights have helped enormously to understand the projections into the future concerning our business units, we also utilise the project database to source new projects for Liebherr-Werk to use as an additional source to pitch for new business.”

Market Analyst & Management, Liebherr-Werk

Your daily news has saved me a lot of time and keeps me up-to-date with what is happening in the market, I like that you almost always have a link to the source origin. We also use your market data in our Strategic Business Process to support our business decisions. By having everything in one place on the Intelligence Center it has saved me a lot of time versus looking on different sources, the alert function also helps with this.

Head of Key Accounts, Saab AB

Having used several other market research companies, I find that GlobalData manages to provide that ‘difficult-to-get’ market data that others can’t, as well as very diverse and complete consumer surveys.

Marketing Intelligence Manager, Portugal Foods

Our experience with GlobalData has been very good, from the platform itself to the people. I find that the analysts and the account team have a high level of customer focus and responsiveness and therefore I can always rely on. The platform is more holistic than other providers. It is convenient and almost like a one stop shop. The pricing suite is highly competitive and value for our organisation.

I like reports that inform new segments such as the analysis on generation Z, millennials, the impact of COVID 19 to our banking customers and their new channel habits. Secondly the specialist insight on affluent sector significantly increases our understanding about this group of customers. The combination of those give us depth and breadth of the evolving market.

I’m in the business of answering and helping people make decisions so with the intelligence center I can do that, effectively and efficiently. I can share quickly key insights that answer and satisfy our country stakeholders by giving them many quality studies and primary research about competitive landscape beyond the outlook of our bank. It helps me be seen as an advisory partner and that makes a big difference. A big benefit of our subscription is that no one holds the whole data and because it allows so many people, so many different parts of our organisation have access, it enables all teams to have the same level of knowledge and decision support.

Head of Customer Insight and Research, Standard Chartered

“I know that I can always rely on Globaldata’s work when I’m searching for the right consumer and market insights. I use Globaldata insights to understand the changing market & consumer landscape and help create better taste & wellbeing solutions for our customers in food, beverage and healthcare industries.

Globaldata has the right data and the reports are of very high quality compared to your competitors. Globaldata not only has overall market sizes & consumer insights on food & beverages but also provides insights at the ingredient & flavour level. That is key for B2B companies like Givaudan. This way we understand our customers’ business and also gain insight to our unique industry”

Head of Consumer Sensory Insights, Givaudan

GlobalData provides a great range of information and reports on various sectors that is highly relevant, timely, easy to access and utilise.  The reports and data dashboards help engagement with clients; they provide valuable industry and market insights that can enrich client conversations and can help in the shaping of value propositions. Moreover, using GlobalData products has helped increase my knowledge of the finance sector, the players within it, and the general threats and opportunities.

I find the consumer surveys that are carried out to be extremely beneficial and not something I have seen anywhere else. They provided an insightful view of why and which consumers take (or don’t) particular financial products. This can help shape conversations with clients to ensure they make the right strategic decisions for their business.

One of the challenges I have found is that data in the payments space is often piecemeal. With GD all of the data I need is in one place, but it also comes with additional market reports that provide useful extra context and information. Having the ability to set-up alerts on relevant movements in the industry, be it competitors or customers, and have them emailed directly to me, ensures I get early sight of industry activity and don’t have to search for news.

Senior Account Manager, TSYS
Financial Services
New
Peru Insurance Industry - Key Trends and Opportunities to 2028
$1,450 | May 2024
Financial Services
New
Apple Pay - Competitor Profile
$350 | June 2024
Financial Services
New
Luxembourg PESTLE Insights - A Macroeconomic Outlook Report
$500 | June 2024
Go even deeper with GlobalData Intelligence Center

Every Company Report we produce is powered by the GlobalData Intelligence Center.

Subscribing to our intelligence platform means you can monitor developments at Open Banking 2021 – Thematic Research in real time.

  • Access a live Open Banking 2021 – Thematic Research dashboard for 12 months, with up-to-the-minute insights.
  • Fuel your decision making with real-time deal coverage and media activity.
  • Turn insights on financials, deals, products and pipelines into powerful agents of commercial advantage.