Open Banking Market Regional Analysis

Europe dominated the open banking industry in 2024 with a market share of 36.9% because of its substantial focus on the enhancement of the security of online payments. Boosting demand for secure online transactions and expanding use of open financial platforms are the two major growth drivers for market expansion. Banks then would be mandated to open their APIs as government needs, specifically that of the European Union's Payment Services Directive (PSD2), promote innovation and collaboration around the financial industry. Furthermore, the market growth is facilitated by the fact that there are many respectable fintech companies, banks, and technology providers in Europe. During the later phases of evolution, open banking ecosystems will raise new possibilities for financial institutions to enhance the security of transactions and the overall customer experience throughout the region.

The North America open banking market will experience a significant compound annual growth rate (CAGR) of 27.9% from 2025 to 2032. The rapid growth in the North America open banking market will be primarily because of the rise in customer demand for seamless and personalized digital banking experiences. This will also witness area banks invest highly in APIs as they collaborate with fintech companies to expand the services they are offering. Banks, therefore, gain through such a venture as they would be able to innovate in such a tech-inclined financial world. The North American market continues to develop due to the use of open banking solutions, which also enables more effective payments, improved data security, and more financial inclusion.