Global Application Programming Interface (API) Banking Market Size and Growth Trends
The global application programming interface (API) banking market is experiencing rapid growth, with a projected CAGR of 20.5% during the forecast period. This growth is driven by the adoption of open banking, which allows financial data and services to be shared with third parties through APIs. This innovative approach is revolutionizing the banking industry, providing new opportunities for consumers and businesses alike.
Open banking has the potential to expand market access for consumers and businesses, as highlighted by the Consumer Financial Protection Bureau (CFPB) and Open Banking reports. With the use of APIs, new digital banking technologies are creating a more interconnected and efficient financial ecosystem. This evolution is supported by the development of standards that enable open banking to adapt to emerging technologies and data security challenges.
One of the key drivers of the API banking market is the increasing adoption of open banking technologies by consumers and businesses. In the UK, for example, over 1 in 9 British consumers are active users of open banking, making an average of $574 transactions per month. This trend is further supported by partnerships between industry leaders like Mastercard, WorldPay from FIS, and Zip, who are leveraging open banking technology to enhance payment experiences and empower consumer lending.
The API banking market is segmented by application, deployment, component, and enterprise size, offering a comprehensive view of the industry landscape. Major players in the market include Citibank, Deutsche Bank, Google LLC, IBM Corporation, and Salesforce, Inc., among others. These companies are driving innovation and shaping the future of banking through their use of APIs and open banking technologies.
For those interested in learning more about the API banking market, a full report is available for purchase from Orion Market Research. With over 15 major industries covered and analysis from more than 120 countries, this report provides valuable insights for investors, stakeholders, and industry professionals. Additionally, the expert research analysts at Orion Market Research are available to answer any questions and provide support before and after purchasing the report.
In conclusion, the API banking market is poised for significant growth in the coming years, driven by the adoption of open banking and the increasing demand for innovative financial services. As technology continues to evolve, the opportunities for API banking will only continue to expand, creating a more interconnected and efficient financial ecosystem for consumers and businesses worldwide.