In an era defined by digital transformation, financial services are undergoing a profound evolution. Open finance stands at the forefront of this revolution, transforming how businesses innovate, how consumers access services, and how economies grow.
By enabling seamless data sharing across banking, investments, insurance and beyond, open finance promises a future of tailored financial experiences and empowerment. As this movement scales globally, its potential to drive competition, inclusion and economic resilience has never been greater.
Across the globe, individuals and businesses are discovering new ways to manage their finances more proactively. From automated savings allocations to real-time credit decisions, open finance tools transform complex financial management into intuitive experiences, empowering users to achieve their goals with confidence.
Definitions and Scope
At its core, open banking pioneered the concept of sharing payment account and transaction data via APIs under regulatory frameworks such as PSD2 in Europe. Customers grant consent to third-party providers to access their current account data, unlocking services like payment initiation and account aggregation. Open finance extends this model to encompass the entire spectrum of financial data—savings, credit, mortgages, investments, pensions, insurance and even non-bank data such as utility payments.
The Bank for International Settlements describes open finance as policy, technology and market arrangements that empower customers to share a broader range of financial information with third parties. This shift from siloed products to interconnected ecosystems enables “smart data” applications that deliver insights, automate decision-making and foster innovation.
Several factors drive the rise of open finance: the maturation of open banking regulations (PSD2, the UK’s OBIE, Brazil’s phased approach and Australia’s Consumer Data Right), coupled with explosive digital payments growth. In 2024, 42% of adults globally made digital merchant payments, up from 35% in 2021, creating fertile ground for data-driven services and personalized financial management tools.
At its essence, open finance aligns with policy goals to promote competition, financial inclusion and consumer data rights, while giving rise to new business models that leverage customer-permissioned data to deliver seamless, value-driven solutions.
Global Adoption Landscape
By early 2025, the global open banking user base exceeded 470 million, while open finance platforms counted over 132 million active participants. Analysts project a trajectory toward 1 billion users by 2030 across 48 countries, reflecting unprecedented appetite for data-enabled financial services.
- 132 million active users of open finance platforms worldwide in 2025
- 470 million banking APIs accessed globally in 2025
- 78+ countries with open banking regulations implemented
- 40+ jurisdictions adopting full open finance frameworks
Participation by banks and fintechs underscores this momentum. In 2025, 87% of global Tier-1 banks had deployed open banking capabilities, 94% of European banks complied with PSD2, and 95% of UK banks joined the national open banking initiative. In the United States, 52% of banks provided data-sharing APIs, while regional institutions grew their offerings by 60% year-on-year.
Such widespread adoption fuels an ecosystem where data flows across institutions, powering applications that range from personal finance management to comparative lending marketplaces and automated investment advisors.
Regional Deep-Dives
The global numbers mask a tapestry of regional strategies, challenges and innovations. Diving into Europe, Latin America, Asia-Pacific and North America reveals how local conditions shape open finance adoption and impact end users.
Europe and the UK
Europe’s PSD2 and the UK’s dedicated open banking framework laid the foundation for a vibrant ecosystem of third-party providers (TPPs). By Q1 2025, Europe hosted 551 TPPs, generating 36.4% of global open banking revenue in 2024. The regulatory emphasis now shifts toward extending data sharing to pensions, investments and insurance within open finance.
In the UK, open banking adoption surged from 13.3 million active users in March 2025 to 15.16 million by July, representing roughly one-third of adults. One in five online account holders used open banking services monthly, driving 29.89 million payment transactions in July—a 70% increase year-on-year. Variable recurring payments accounted for 13% of these activities, signaling migration from traditional card rails to account-to-account models.
This growth catalyzed a wave of fintech innovation: digital mortgage advisors harness aggregated data to deliver personalized budgeting insights, cashflow forecasting tools provide real-time advice, and SME lending platforms tailor offers based on real-time transaction history. The result is a more competitive landscape, with established banks collaborating with agile challengers to meet evolving customer demands.
Latin America (Brazil)
Brazil stands as a flagship open finance market, bypassing a narrow open banking phase and moving directly to comprehensive data sharing. Backed by the PIX instant payment system—used by 92% of account holders—Brazil’s open finance ecosystem counted 29 million active monthly users in 2024 and processed 96 billion API calls per month in 2025. Over 80% of Brazilian banks supported payment initiation by 2025.
The social impact is profound: open finance drives financial inclusion and credit access for unbanked and underbanked populations. Micro-credit providers leverage alternative data sources to score borrowers, digital wallets integrate with agriculture cooperatives, and community banks extend lending to small enterprises based on payment histories. Digital-only banks, empowered by shared data, scale rapidly, reshaping the competitive landscape.
Asia-Pacific
Asia-Pacific’s open finance journey reflects a diverse blend of government-led and market-driven initiatives. Sixteen jurisdictions reported regulatory frameworks and regulator–fintech collaboration by 2025, yielding 44% growth in open banking accounts. Key markets showcase varying approaches:
India’s digital public infrastructure—Aadhaar, UPI and the Account Aggregator framework—is enabling coverage of over one billion accounts. These interoperable platforms underpin innovative credit scoring, investment recommendations and seamless payment experiences.
Singapore’s agile fintech ecosystem recorded an 80% surge in open API calls, as banks and fintechs co-developed solutions for cross-border payments and embedded insurance. Across the region, leading banks such as DBS and Standard Chartered published 20+ open APIs, illustrating a shift toward bank-led, platform-based models.
North America
In the United States and Canada, open finance unfolds through market-led standards and evolving regulatory expectations. By 2025, 52% of US banks offered data-sharing APIs, with community banks increasing participation by 31% year-on-year. Industry consortia like FDX promote interoperability standards, while federal rulemakings aim to enshrine consumer data rights. Canada’s modernization of the Payments Canada framework and Ontario’s open banking pilot signal growing momentum.
These developments empower consumers to consolidate accounts, compare lending options and access automated financial advice. Fintechs and aggregators compete with traditional institutions for data-driven consumer insights, leading to more competitive pricing and enriched offerings.
Market Growth Projections
The commercial potential of open finance is striking. In 2025, the global open banking market reached $38.86 billion, with a projected compound annual growth rate of 24.8%. By 2026, revenues are forecast to exceed $48 billion, approach $75 billion by 2028 and climb to $94.14 billion by 2029.
Europe dominated with 36.4% of revenues in 2024, followed by Asia-Pacific and North America. This trajectory underscores escalating investments in API platforms, cybersecurity measures and consumer-centric applications.
Risks and Governance Considerations
As open finance matures, stakeholders must navigate complexities around data privacy, security and ethical use. Harmonized regulations reduce fragmentation, but jurisdictions vary in their approach to liability and consumer protection. Ensuring robust API standards and certification processes is critical to prevent breaches and maintain trust.
Additional considerations include interoperability across platforms, clarity on data ownership, and mechanisms for redress in case of unauthorized data sharing. Regulators increasingly advocate for sandbox environments to test innovations, promote transparency and accountability, and refine frameworks based on real-world outcomes.
Conclusion
Open finance heralds a new financial paradigm, where data empowers consumers, fuels innovation and drives global economic resilience. The journey toward one billion users by 2030 illuminates both the scale of opportunity and the responsibility to build inclusive, secure and sustainable ecosystems.
By fostering collaboration among regulators, banks, fintechs and civil society, we can harness open finance to unlock economic growth and social benefits, democratize access to financial services and create a more competitive, dynamic landscape for all.
