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Open Banking on the Rise: Study Predicts 580 Billion API Calls by 2027

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Open Banking usage is set to grow significantly over the next four years, according to a recent study by Juniper Research. The report found that API calls generated by Open Banking will increase by 470% by 2027, with the total number of calls reaching over 580 billion.

This growth is largely driven by the interest in new Open Banking-based services, such as Personal Financial Management tools and account access for underwriting loans and credit. Users are seeking better control of their finances across different accounts, especially given the impact of the cost-of-living crisis.

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Despite this growth, Open Banking still has low consumer awareness, and infrastructure vendors must work with the wider ecosystem to educate users and ensure they understand the benefits of data sharing.

Europe leads the way in Open Banking deployments, with Europe’s share of API calls predicted to be 70% of the global total in 2027. Europe has the best-established set of API connections, having deployed Open Banking rails as part of PSD2. Deployments are becoming more advanced, covering a greater number of banking services, such as credit cards and mortgages, creating significant opportunities for vendors.

Latin America represents a massive growth opportunity, with the number of API calls set to grow by over 1,270% between 2023 and 2027. Broader access to APIs and stronger consumer awareness will drive growth, as well as additional roll-outs, such as within Colombia. Vendors are recommended to get involved in the earliest stages of Open Banking roll-outs in new countries to maximize their early-mover advantage.

Overall, Open Banking offers a significant opportunity for the financial sector, and the growth predicted by Juniper Research underscores its potential. However, it is important for vendors and the wider ecosystem to work together to educate consumers and ensure the benefits of data sharing are clear. For the most part, Open Banking has the potential to revolutionize financial services, and it will be interesting to see how it develops in the coming years.

 

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