Connect with us

Technology

Open Banking Market to Grow by USD 57.66 Billion (2024-2028) as Demand for Fast Seamless Payments Rises, AI-Driven Market Evolution Report – Technavio

Published

on

NEW YORK, Oct. 31, 2024 /PRNewswire/ — Report on how AI is driving market transformation – The global open banking market size is estimated to grow by USD 57.66 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  27.2%  during the forecast period. Increased demand for fast and seamless payments is driving market growth, with a trend towards integration of AI into open banking services. However, implementation of strict guidelines in handling personal financial data  poses a challenge.Key market players include Airwallex, American Express Co., Australia and New Zealand Banking Group Ltd, Banco Bilbao Vizcaya Argentaria SA, Bank of Ireland, Caixa Geral de Depósitos SA, Citigroup Inc., Credit Agricole SA, Finastra, HSBC Holdings Plc, ING Groep NV, Jack Henry and Associates Inc, Mambu BV, Nationwide Mutual Insurance Co., NCR Voyix Corp., Qwist GmbH, Revolut Ltd., Royal Bank of Scotland plc, Societe Generale SA, and Wise Payments Ltd..

AI-Powered Market Evolution Insights. Our comprehensive market report ready with the latest trends, growth opportunities, and strategic analysis- View your snapshot now

Forecast period

2024-2028

Base Year

2023

Historic Data

2018 – 2022

Segment Covered

Service (Banking and capital markets, Payments, and Digital currencies), Deployment (On premise and Cloud), and Geography (North America, Europe, APAC, South America, and Middle East and Africa)

Region Covered

North America, Europe, APAC, South America, and Middle East and Africa

Key companies profiled

Airwallex, American Express Co., Australia and New Zealand Banking Group Ltd, Banco Bilbao Vizcaya Argentaria SA, Bank of Ireland, Caixa Geral de Depósitos SA, Citigroup Inc., Credit Agricole SA, Finastra, HSBC Holdings Plc, ING Groep NV, Jack Henry and Associates Inc, Mambu BV, Nationwide Mutual Insurance Co., NCR Voyix Corp., Qwist GmbH, Revolut Ltd., Royal Bank of Scotland plc, Societe Generale SA, and Wise Payments Ltd.

Key Market Trends Fueling Growth

The open banking market is undergoing a major shift with the incorporation of artificial intelligence (AI) into its offerings. This trend is fueled by the demand for improved user experiences and sophisticated financial management tools. In June 2024, neobank bunq, Europe’s second-largest with 12.5 million users, partnered with Mastercard. This collaboration utilizes Mastercard’s open banking platform, enabling users to consolidate accounts from multiple banks into the bunq app. By integrating AI, bunq’s advanced money assistant, Finn, enhances these insights with transaction data from various sources. For instance, users can request a comprehensive summary of their travel expenses over the past year, and Finn will gather this information from both bunq and external accounts. In February 2024, Bud Financial (Bud) and Fintech Galaxy formed a strategic alliance to strengthen the open banking ecosystem. This partnership combines Bud’s data intelligence capabilities with Fintech Galaxy’s open Finance FINX Platform, employing AI-driven data enrichment techniques. This integration empowers financial institutions to deliver personalized financial experiences by offering in-depth insights into customer behavior and financial requirements. Both parties share a common goal to maximize the potential of open banking and data intelligence, fostering innovation and customer-focused solutions within the financial sector. The integration of AI in open banking is set to disrupt the industry by providing more customized, efficient, and insightful financial services. As more institutions adopt these technologies, the global open banking market is anticipated to experience heightened competition and innovation throughout the forecast period, ultimately benefiting consumers with more targeted and intelligent financial solutions. 

Open banking is revolutionizing the payment ecosystem by enabling secure access to financial data through APIs. Broadband connectivity and advanced technologies like AI and machine learning power big data analytics, enhancing personalized financial services. This trend is transforming traditional banking by providing real-time data for informed decisions and customer-centric services. E-commerce and venture capital are driving the adoption of open banking solutions. Security is paramount, with open API frameworks and security measures protecting sensitive customer data from online fraud. Open banking platforms offer innovative financial services, including insurance products and automated savings. Banks and financial institutions collaborate with third-party service providers to offer on-premise and cloud-based financial management tools. Open banking APIs facilitate seamless payment initiation and account information solutions, enhancing customer retention. Mobile banking benefits from these advancements, offering convenient and secure transactions. Despite these advantages, data security remains a concern. Open banking solutions must prioritize security measures to ensure trust and compliance with regulatory requirements. Retail and commercial banks are embracing open banking to stay competitive and meet evolving customer expectations. 

Insights on how AI is driving innovation, efficiency, and market growth- Request Sample!

Market Challenges

The global open banking market is confronting a major hurdle in implementing stringent guidelines for managing personal financial data. This challenge is accentuated by recent regulatory advancements geared towards ensuring data security and adherence. In September 2024, the Financial Data Exchange (FDX) petitioned the Consumer Financial Protection Bureau (CFPB) for recognition as an authorized standard-setting organization for financial firms offering open banking services. This recognition would bolster the credibility and influence of FDX’s standards, offering a benchmark for the industry. The CFPB has finalized a rule detailing the qualifications necessary for an organization to secure recognition as a standard-setting body. This rule is part of the broader Personal Financial Data Rights Rule, which aims to safeguard consumer financial data. The new rule stipulates the attributes that standard setters must adhere to for CFPB recognition, including transparency, inclusiveness, and the capacity to create consensus standards that can be widely adopted by the industry. Compliance with these guidelines poses significant challenges for financial institutions. First, meeting the new standards necessitates substantial investment in technology and processes. Financial institutions must modernize their systems to satisfy the rigorous data protection specifications, an undertaking that can be both time-consuming and expensive. Furthermore, the necessity for consensus among various stakeholders can slow down the standard-setting process, potentially delaying the implementation of new guidelines. Despite these challenges, the implementation of strict guidelines for handling personal financial data is crucial for the global open banking market. These guidelines are essential for safeguarding consumer data and fostering trust, but they also necessitate considerable effort and resources from financial institutions to achieve compliance.Open Banking is revolutionizing the financial industry by enabling banks and financial institutions to share customer data with third-party service providers through APIs. This trend is driving the development of personalized financial services, real-time data, and innovative solutions. However, challenges persist. Banks must choose between on-premise and cloud-based Open Banking platforms, ensuring customer-centric services, and maintaining security measures for sensitive customer data. Retail and commercial banks are embracing Open Banking Solutions for improved customer retention and digital transformation. Open Banking APIs facilitate the exchange of financial data, enabling informed financial decisions and the integration of insurance products. With the rise of mobile banking and payment initiation solutions, API management, identity verification, and authentication solutions are essential. Data sharing and data analytics are key to unlocking the full potential of Open Banking. Security measures remain a top priority to protect financial institutions and their customers.

Insights into how AI is reshaping industries and driving growth- Download a Sample Report

Segment Overview 

This open banking market report extensively covers market segmentation by

Service 1.1 Banking and capital markets1.2 Payments1.3 Digital currenciesDeployment 2.1 On premise2.2 CloudGeography 3.1 North America3.2 Europe3.3 APAC3.4 South America3.5 Middle East and Africa

1.1 Banking and capital markets-  Open Banking is a financial system that enables customers to securely share their financial data with third-party providers. This system allows for more efficient and convenient financial management. Banks provide access to customers’ account information through Application Programming Interfaces (APIs), enabling seamless data exchange. This innovation benefits consumers by offering personalized financial services and improved financial management tools. Additionally, it fosters competition among financial institutions and fintech companies, driving innovation and better services for customers.

Download complimentary Sample Report to gain insights into AI’s impact on market dynamics, emerging trends, and future opportunities- including forecast (2024-2028) and historic data (2018 – 2022) 

Research Analysis

Open banking is revolutionizing the payment ecosystem by enabling customers to share their financial data with third-party service providers through APIs. This innovative approach is transforming the way we manage our money and access financial services. With broadband connectivity becoming more widespread, open banking is making personalized financial services more accessible than ever before. Artificial intelligence and machine learning are key technologies driving the open banking revolution. They enable real-time data analysis, informed financial decisions, and automated savings. Big data analytics is used to identify trends and patterns in financial data, leading to the development of new insurance products and customer-centric services. Security is a top priority in open banking. Advanced encryption and multi-factor authentication are used to protect sensitive customer data from online fraud. Venture capital is pouring into the open banking market, fueling the development of new and innovative financial services. Banks and financial institutions are embracing open banking solutions to improve customer retention and stay competitive. Open Banking APIs provide access to real-time data, enabling e-commerce transactions and mobile banking services. Overall, open banking is transforming the financial industry, offering a more efficient, personalized, and secure way to manage money.

Market Research Overview

Open banking is a payment ecosystem that leverages Open API Frameworks to enable third-party service providers to access financial data from banks and financial institutions in real-time. This revolutionary approach to financial services is driven by broadband connectivity, artificial intelligence (AI), and machine learning, enabling personalized financial services, informed financial decisions, and customer-centric solutions. Open banking goes beyond traditional banking by offering innovative financial services, including payment initiation, account information, and API management solutions. E-commerce and venture capital industries benefit from open banking by streamlining transactions and enhancing customer experience. However, open banking also presents challenges such as online fraud and data security. Financial institutions must implement security measures to protect sensitive customer data. Open banking platforms offer identity verification and authentication solutions to mitigate risks. Open banking solutions encompass financial management tools, insurance products, and real-time data analytics. Cloud-based and on-premise solutions offer flexibility and scalability. Open Banking APIs provide access to financial data, enabling automated savings, mobile banking, and digital transformation. Open banking’s data-sharing capabilities enable financial institutions to offer more informed financial decisions and innovative services, enhancing customer retention and satisfaction. Security measures are essential to ensure trust and confidence in the open banking ecosystem. Retail and commercial banks, as well as financial institutions, are embracing open banking to stay competitive and meet evolving customer needs.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

ServiceBanking And Capital MarketsPaymentsDigital CurrenciesDeploymentOn PremiseCloudGeographyNorth AmericaEuropeAPACSouth AmericaMiddle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

View original content to download multimedia:https://www.prnewswire.com/news-releases/open-banking-market-to-grow-by-usd-57-66-billion-2024-2028-as-demand-for-fast-seamless-payments-rises-ai-driven-market-evolution-report—technavio-302292482.html

SOURCE Technavio

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Technology

PCS Software Appoints Danielle Villegas as Chief Product Officer

Published

on

By

HOUSTON, Nov. 1, 2024 /PRNewswire/ — PCS Software, a leading transportation management system (TMS) provider, today announced the appointment of Danielle Villegas as Chief Product Officer (CPO). In this role, Villegas will lead the company’s product strategy and roadmap, driving innovation and growth across its suite of TMS solutions.

PCS Software announced the appointment of Danielle Villegas as Chief Product Officer (CPO).

Villegas brings over 20 years of experience in software product management, with a proven track record of building and launching successful products across various industries. She possesses a deep understanding of the customer journey and a passion for leveraging data-driven insights to develop competitive solutions that address critical market needs.

“We’re thrilled to welcome Danielle to the PCS team,” said Mark Hill, CEO of PCS Software. “Having previously collaborated with Danielle at W Energy and Allegro, I’ve firsthand experience of her strategic vision, strong leadership, and ability to deliver results. Her strong analytical and customer-centric approach, will be instrumental in propelling our product development efforts and further solidifying our position as a leader in the TMS market.”

Prior to joining PCS, Villegas served as Vice President of Product at SkySpecs, where she implemented best-in-class product management processes and led the product roadmap for a multi-product SaaS/mobile app portfolio. Her experience also includes leadership roles at W Energy Software, 5, Cenergistic, and Allegro Development.

“I am excited to join PCS at such a pivotal time in the company’s growth,” said Villegas. “By listening to our customers’ needs and leveraging cutting-edge technology, we’ll deliver the tools and capabilities they need to succeed in today’s rapidly evolving marketplace.”

About PCS Software:

PCS Software is a leading provider of transportation management solutions, dedicated to empowering transportation and logistics companies to streamline their operations, improve efficiency, and maximize profitability. With a suite of advanced software tools, PCS supports shippers and carriers in managing their end-to-end transportation processes, from planning and execution to compliance and analytics. Committed to innovation and customer success, PCS continually enhances its product offerings to address the evolving needs of the industry. To learn more about PCS Software, visit www.pcssoft.com.

Media Contact:

Susan Collins

Media Relations Specialist

63rdandeliot@gmail.com

770-654-7054

View original content to download multimedia:https://www.prnewswire.com/news-releases/pcs-software-appoints-danielle-villegas-as-chief-product-officer-302291665.html

SOURCE PCS Software

Continue Reading

Technology

Race Communications Brings 10G Fiber Internet to Four New Markets in Central California

Published

on

By

SOUTH SAN FRANCISCO, Calif., Nov. 1, 2024 /PRNewswire/ — Today, Race Communications, California’s leading internet service provider, proudly announces the expansion of its fiber-optic network into four new communities across the state. The cities of Merced, Turlock, Porterville, and Atwater are just the latest to join the Race Communications’ coverage areas, gaining access to the fastest fiber internet in California. Construction is underway to bring service to 82,000 homes and businesses. Some residents will be able to get service in early 2025.

“This new expansion is one of our largest and most exciting yet,” Raul Alcaraz, CEO of Race Communications, said. “Our recent growth is extraordinary, allowing us to bring reliable, future-proof fiber internet to diverse communities, from vibrant college cities to more rural family-focused towns.”

Race offers customers everything they need to stay connected, including fast fiber internet speeds, reasonable rates, and California-based local customer support. Customers can expect exceptional internet performance, streamlining their communication and connection with the world. With its 100% fiber-optic network, super-fast streaming capabilities speeds up to 10 Gbps, and California-based local customer support, Race provides reliable, future-proof fiber internet with plans starting at just $35 a month.

Merced is just one of the communities excited about fiber internet coming to their city.

“The arrival of a new broadband provider is a tremendous win for our community. Expanding high-speed internet access to unserved and underserved areas will make a real difference for families, businesses, and students across Merced,” Mayor Matthew Serratto said. “With expanded connectivity options available to our residents, we can strengthen our local economy, improve education, and give every resident the opportunity to succeed in today’s digital age. This investment in our infrastructure is an important move toward a more connected, inclusive, and prosperous future for everyone in Merced.”

About Race Communications:
Race Communications is a leading provider of fiber-to-the-home (FTTH) services, committed to delivering reliable, high-speed internet to communities across California. Founded in 1994, Race has grown to serve hundreds of thousands of communities and continues to expand its network to reach underserved and rural areas. Race is dedicated to bridging the digital divide and providing cutting-edge technology to all Californians. To date, Race has leveraged public grants and private investments totaling more than $850M.

For more information, please visit the Race Communications website at race.com or call 877.722.3833

For media inquiries, please contact:

Marketing@race.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/race-communications-brings-10g-fiber-internet-to-four-new-markets-in-central-california-302293484.html

SOURCE Race Communications

Continue Reading

Technology

FireflySci Implements New Payment Policy to Ensure Business Stability Amid Economic Challenges

Published

on

By

FireflySci, a leading American provider of high-quality scientific laboratory equipment, has announced a crucial change in its payment policy, effective immediately. In response to escalating economic pressures and the challenges of increasing customer debt, the company will now require payments at the time of order.

NORTHPORT, N.Y., Nov. 1, 2024 /PRNewswire-PRWeb/ — FireflySci, renowned for its precision-engineered cuvette products used in spectroscopy, has been a trusted partner in the scientific community for years. However, the current economic climate, characterized by rising inflation and extensive customer requests for extended payment terms—some reaching up to Net 90 days—is posing significant cash flow challenges for this small business.

We are confident that this updated policy will allow us to strengthen our operations and continue to provide the best possible service and support to our customers.

“While we value the relationships we’ve built with our customers over the years, the current financial environment necessitates this change,” said Sim Woitovich, CEO of FireflySci. “The decision to require immediate payment wasn’t made lightly. It is a necessary step to ensure we continue providing the quality products our customers depend on.”

The demand for longer payment terms has become increasingly common, putting small businesses like FireflySci in a precarious financial position. This extended credit can lead to a strain on resources, making it difficult to reinvest in product development and maintain operational efficiencies. By implementing this policy, FireflySci aims to safeguard its ability to deliver exceptional service and maintain its reputation for excellence in the spectroscopy field.

Global inflation has compounded these challenges by increasing the costs of raw materials and operational expenses. This new payment policy is designed not only to secure the company’s financial health but also to ensure it can continue to innovate and support scientists worldwide.

“We are committed to finding balanced solutions that meet our clients’ needs without compromising our business stability,” continued Sim. “We are confident that this updated policy will allow us to strengthen our operations and continue to provide the best possible service and support to our customers.”

FireflySci is determined to make this transition smooth for its clientele. The company is reaching out directly to its partners to discuss the new terms and ensure a seamless adaptation. The goal is to maintain transparency and open lines of communication while reinforcing the trusted partnerships that FireflySci has cultivated over the years.

As FireflySci navigates these economic challenges, it remains dedicated to its mission of advancing scientific discovery through reliable, high-quality cuvette products. This payment policy change marks a significant step in preserving the company’s legacy of innovation and excellence.

About FireflySci

FireflySci is a small American business that is a premier provider of optical spectroscopy and calibration standards, specializing in the manufacturing of cuvettes for laboratories and research institutions. Committed to quality and precision, FireflySci supports scientists in achieving accurate and reliable research results worldwide.

Media Contact

Sim Woitovich, FireflySci, 347-441-4277, info@fireflysci.com, www.fireflysci.com 

View original content to download multimedia:https://www.prweb.com/releases/fireflysci-implements-new-payment-policy-to-ensure-business-stability-amid-economic-challenges-302293608.html

SOURCE FireflySci

Continue Reading

Trending