Open Banking is Going Global With 87% Of Countries Having Open APIs
More than 87% of countries have already established some form of Open APIs in the banking industry. According to LearnBonds, there are over 10,000 financial institutions around the world with open banking implementations.
Online Banking is a global trend that banks and institutions are currently following to improve the current connections across digital services. In addition to it, Open Banking is the representation of a next-generation business model in an open data economy.
With Open APIs, banks can be easily linked to financial technology companies using affiliated services from a single dashboard using specific applications on a smartphone.
The leading jurisdictions in Open Banking include the United Kingdom (UK), Australia and the European Union (EU).
About it, LearnBonds explained: “The United Kingdom leading the way in Open Banking explains why so many UK-based challenger banks and tech startups like Revolut, Monzo, Starling and Curve are thriving in the banking sector.”
Countries such as the United States or New Zealand are considered ‘Beginners.’ These are countries and jurisdictions with small or no progress on regulation or standards.
Meanwhile, Switzerland, India or China are considered ‘Risers’ because the whole market is unregulated but they are registering Open APIs and evolving standards.
To understand which countries are currently at the forefront of Open Banking, the report takes into account four different factors that include the spread of Open APIs, regulatory requirements, standardization initiatives and the presence of a central TPP regulatory body.