UK Open Banking Market

UK Open Banking Market Overview:

The UK open banking market size reached USD 0.99 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 3.95 Billion by ​2033​, exhibiting a growth rate (CAGR) of 16.60% during 2025-2033. The market is driven by increasing support from industry associations and networks, rising investments in technology, and improving financial literacy among consumers. Additionally, the growing integration of third-party applications, the personalization of financial services, and the development of new payment solutions are favoring UK open banking market share.

UK Open Banking Market Trends:

Rapid technological advancements

Advances in technology, including API development and security measures as well as data analytics, drive the technical infrastructure necessary for open banking, thereby fueling UK open banking market growth. Moreover, fintech innovation will be influenced by continued technological advancement, with the advantage of easy integration using the APIs with banking systems to provide a safe and efficient communication link between financial institutions. Furthermore, the use of data analytics by fintech companies would enable large amounts of financial data to be mined and such findings implemented into personalized financial services that would allow the better experiences enjoyed by customers. By the use of the power of data analytics, fintech companies are therefore enabled to serve each customer differently according to his or her preferences. In addition, the rapid integration of artificial intelligence and machine learning algorithms promotes the capabilities of fintech platforms, enabling them to learn and enhance their services over time. As a result, these technological advancements contribute to a more efficient financial ecosystem, changing the way individuals manage their finances in the UK. On 4^th June 2024, a partnership with Mastercard was formed by Bunq, Europe's second biggest neobank, which will allow 12.5 million users to provide insights into their spending across multiple accounts with open banking functionalities. Thanks to AI-powered financial management tools, nearly 40% of respondents reported increased time spent on the app within two weeks. It launched in the Netherlands, France, and Germany, but plans to roll out more across Europe, including the U.K.

Increasing consumer demand for transparency

Increased consumer demand for transparency is a significant factor in the UK open banking market outlook. As consumers become more knowledgeable about their financial options, they increasingly expect greater transparency from banks and financial institutions regarding fees, services, and terms. Traditional banking models have often been criticized for a lack of clarity in terms of hidden fees, complex terms, and limited access to data, which has led to growing frustration among consumers. Open banking provides a solution by enabling consumers to have full visibility of their financial data and allowing them to share this information with third-party providers. This transparency empowers consumers to make informed decisions about their finances, compare products and services, and select the best options that suit their needs. Furthermore, the demand for transparency is fostering the development of innovative financial products. On 3^rd November 2024, the fintech company Affirm launched its pay-over-time financial solutions in the UK, expanding its network to 50 million consumers and 300,000 merchants. Unlike around 25% of BNPL providers in the UK that charge late fees in 2023, Affirm makes its interest-free and fixed-rate payment options clear. Having processed more than USD 75 billion in transactions across the United States and Canada, Affirm is now working with partners in the United Kingdom including Alternative Airlines and Fexco. Besides this, the shift toward transparency is also enhancing trust between consumers and financial institutions. As open banking promotes openness in the use of financial data, it reduces information asymmetry, ensuring that consumers are fully aware of how their data is being used.

UK Open Banking Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on services, deployment, distribution channel.

Service Insights:

• Banking and Capital Markets
• Payments
• Digital Currencies
• Value Added Services

The report has provided a detailed breakup and analysis of the market based on the service. This includes banking and capital markets, payments, digital currencies, and value added services.

Deployment Insights:

• Cloud-based
• On-premises

A detailed breakup and analysis of the market based on the deployment have also been provided in the report. This includes cloud-based and on-premises.

Distribution Channel Insights:

• Bank Channels
• App Markets
• Distributors
• Aggregators

The report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes bank channels, app markets, distributors, and aggregators.

Regional Insights:

• London
• South East
• North West
• East of England
• South West
• Scotland
• West Midlands
• Yorkshire and The Humber
• East Midlands
• Others

The report has also provided a comprehensive analysis of all the major regional markets, which include London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

UK Open Banking Market News:

• July 31, 2024: Open Banking Expo UK & Europe announced the launch of the "Rise, created by Barclays" zone at their 2024 event. This new space will provide fintech startups with the opportunity to showcase their innovations and network with leaders from various industries. Qualifying fintechs will benefit from discounted exhibition stands, giving them access to over 1,200 attendees and the latest trends in open banking, finance, and smart data.
• March 5, 2024: Lloyds Banking Group officially joined the Open Property Data Association (OPDA), a trade body focused on establishing Open Data standards for the homebuying and selling process. As a member, Lloyds will play a key role in promoting widespread data sharing across the property sector. The lender will also lead efforts to enhance consumer awareness and understanding of digital property data, helping to drive the adoption of these standards within the industry.

UK Open Banking Market Report Coverage:

Key Questions Answered in This Report:

• How has the UK open banking market performed so far and how will it perform in the coming years?
• What is the breakup of the UK open banking market on the basis of service?
• What is the breakup of the UK open banking market on the basis of deployment?
• What is the breakup of the UK open banking market on the basis of distribution channel?
• What is the breakup of the UK open banking market on the basis of region?
• What are the various stages in the value chain of the UK open banking market? 
• What are the key driving factors and challenges in the UK open banking market?
• What is the structure of the UK open banking market and who are the key players?
• What is the degree of competition in the UK open banking market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the UK open banking market from 2019-2033​.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the UK open banking market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the UK open banking industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.