Index - Open Banking Excellence

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The largest Open Finance dataset

The Global Open Finance Index leverages insights gained from more than 400 Open Banking and Open Finance experts across 23 markets and is backed up by more than 150 secondary datapoints from partners including the World Bank, the IMF and Dealroom

"...required reading..."

Our thanks to those who have supported us along the way:

The University of Oxford, Accenture, NatWest, the Department for International Trade, Innovate Finance, the World Bank and many more.

“The capacity of this report to bring into focus the pace of change across the world is why it should be considered required reading for anyone with an interest in the space.”

Andrew Bowie MP

Minister for Exports, UK Government

Our Findings

The UK is leading the world with both implementation and adoption of Open Banking, but there is fast-moving group of countries not far behind.

3 drivers of adoption

Awareness and adoption are closely linked but are driven by other market characteristics

Breadth and ambition of regulation

Mandates drive adoption
Regulation works to diversify use cases
Public digital infrastructure acts as an accelerant

Ecosytem and collaboration

Prescriptive standards aid collaboration
Collaboration between fintech and institutions is key to at-scale adoption
Quality of collaboration is closely linked to increased fintech investment

Trust and security

Markets with high adoption see collaboration outside of mandated regulatory scopes
Open Banking and Open Finance have to find a way to thrive beyond the mandate for many key use cases

Government support alters market characteristics

Markets studied fell into one of three categories. Neutral governments offered no support to the ecosytem. Supportive governments mandated data access and / or invested in public digital infrastructure. Mandated governments mandated the use of specific standards

51.2 – The average adoption score (out of 100) for markets with neutral government positions
54.9 – The average score of Government supported markets
63.3 – The average score of government mandated markets

Use cases diverge by geography and market maturity

Our survey asked respondents about the use cases that they expected to see gain wide spread adoption in 2023.

29%

Said PFM (personal finance management) would be the driver

17%

Cited income and affordability checks as the key use case for their market

9%

Thought account to account top-up payments would be the main driver

Personal Finance Management is not the answer

Early-stage markets tended to have a high degree of concentration around one or two use cases, personal finance management (PFM) is particularly prevalent in this group.

More mature ecosytems saw a broader diversity of use-cases, most commonly with lending related use cases coming to the fore.

Leaders, Movers, Planners, Watchers

Data from our survey allowed us to understand the market posture of the countries we analysed. Markets with similar characteristics were grouped together to create 4 key groups.

Leaders – Markets where mature ecosystems were driving diverse use-cases and significant consumer uptake.

Movers – Markets with significant momentum behind a shift to API driven data sharing wither regulatory or market driven.

Planners – Markets with progressed regulatory structures and very early stage ecosystems.

Watchers – Markets with early stage regulatory structures but with little infrastructure in place.

Personal Finance Management is not the answer

Early-stage markets tended to have a high degree of concentration around one or two use cases, personal finance management (PFM) is particularly prevalent in this group.

More mature ecosytems saw a broader diversity of use-cases, most commonly with lending related use cases coming to the fore.

Mandates drive adoption

Despite a strong outlier in the case of the US, there is an otherwise strong correlation between markets with mandated adoption of prescriptive standards and the consumer impact of Open Banking.

7 out of the top 10 markets for adoption have taken a mandated approach with 2 of the remaining showing widespread, (voluntary) adoption of similar standards.

Investment in public digital infrastructure also showed a correlation with adoption, particularly around digital ID programs. This will be an area to watch as we progress as much of the digital infrastructure covered in the survey is comparatively early-stage.

Market characteristics are inter-dependent

The index methodology is based on tracking market progress against 4 main pillars.

Regulatory environment – covers data around the extent and maturity of the regulation governing Open Banking

Consumer environment – covers data around the state of adoption for digital finance products in market

Ecosystem – Covers the development of a flourishing fintech sector necessary for propagating Open Banking adoption

Entrepreneurial environment – Covers the availability of key components for growing Open Banking businesses (e.g talent, capital, ease of doing business etc…)

We found that, with a relatively small deviation, there was a strong correlation between all 4 categories, with the strongest being between the regulation and consumer pillars.