The financial sector is undergoing a fundamental transformation from open banking to open finance. With this transition, the fragmented age of financial services is entering its twilight—one that should be fully realised by the end of this decade. In its place, a new era is emerging.
Our report “Open Finance: Genesis of a revolution” delves deeply into the forces shaping this evolution and the consequential opportunities, and challenges, that lie ahead for Europe’s financial services sector.
15%
Projected growth of digital wallets through 2027
Over 50%
of digital natives are willing to share their data and allow it to be sold to TPPs in exchange for more value.
54.4%
The number of API calls is projected to grow from 102 bn in 2023 to 580 bn in 2027, growing at a compound annual growth rate of 54.4%.
Embracing open finance:
- Open finance will herald a universally instant economy: We envision an open finance future for the payment industry, where real-time transactions are the norm, powered by advanced APIs.
- Open finance will create new revenue streams through data monetisation: Data monetisation will soon be a major revenue stream for banks, as they leverage customer data, with consent, for third parties. With their broad access to customer information, banks across Europe are well-positioned to capitalise on this trend.
- Open finance will create holistic advice and management solutions: data sharing through open finance will allow industry players to provide clients with an overall view of their investments, even if these are with different advisors and include products from various asset managers, offering real-time, optimised asset allocation advice and the best products suited to their allocations.
- Open finance will expand insurance distribution markets: Open finance will allow insurers to expand beyond traditional markets by partnering with FinTechs and insurtechs. These collaborations will enable seamless integration of insurance products with non-insurance offerings, creating a broader, unified customer experience.