Open finance is transforming the way individuals and businesses interact with money, extending the promise of open banking to every corner of the financial ecosystem. As data sharing extends beyond payments into savings, investments, insurance and pensions, we stand on the brink of a new era of innovation, inclusion and choice.
Expanding the Financial Ecosystem
Open finance builds on the foundations of open banking, but takes integration much further. By connecting banks, insurers, asset managers, pension providers and more via secure APIs, it unlocks a secure, interoperable open finance ecosystem that benefits all stakeholders.
- Standardized, secure APIs across product categories
- Customer consent and data portability as legal and technical cornerstones
- Third-party innovators delivering tailored services
- Embedded finance powering seamless experiences
Market Growth on the Horizon
The numbers are staggering: the API banking market is projected to swell from USD 37 billion in 2025 to USD 217.3 billion by 2032, while embedded finance is on track to reach USD 7.2 trillion by 2030. These shifts will reshape revenue models and competitive landscapes.
By 2030, embedded finance and open finance applications could drive a 30% rise in banking revenues and add up to 5% of GDP across forward-looking economies.
Shaping Customer Expectations
Consumers now expect real-time payments and instant payouts as a baseline, and demand holistic, personalized financial experiences that anticipate their needs. Younger, mobile-first generations are leading the way, embracing account-to-account (A2A) transfers, digital wallets and in-app financial tools.
Security remains paramount. Clear consent workflows, strong authentication and transparent data usage build trust and fuel adoption. As users become more sophisticated, providers that deliver frictionless onboarding and robust protection will win loyalty.
Regulatory Landscape and Policy Shifts
Policy frameworks are evolving to support open finance. In the UK, the Financial Conduct Authority’s Strategy 2025 places open finance at the heart of its agenda, while the EU’s upcoming FiDA proposal seeks to extend data access beyond payments to all financial products.
- UK and EU: moving from open banking to open finance under “smart data” initiatives
- U.S. and Canada: market-driven adoption expected to accelerate in 2026
- Emerging markets like Brazil and India: real-time rails and account aggregators boosting inclusion
Regulators face the challenge of balancing innovation with consumer protection. Standardized frameworks, clear liabilities and robust oversight will be key to sustainable growth.
Technological Foundations and Innovation
The backbone of open finance lies in technology. Financial institutions now manage hundreds to thousands of APIs, adhering to standards like BIAN and FAPI to ensure interoperability and security.
Cloud-native architectures, event-driven data pipelines and AI-driven analytics enable platforms to deliver predictive insights and automated advice. As data volumes swell, advanced data governance and privacy-preserving computation will become critical.
Real-time payments infrastructure—from Europe’s SEPA Instant to India’s UPI—demonstrates the power of standardized API and data models combined with instant settlement, unlocking new use cases in lending, insurance and wealth management.
Embracing the Future: Strategies for Success
Organizations that aim to thrive in the open finance era should focus on building ecosystems rather than isolated products. Collaboration between incumbents and fintechs, underpinned by robust APIs, will drive value for customers and partners alike.
- Invest in developer-friendly platforms and sandbox environments
- Prioritize user-centric consent management and privacy controls
- Leverage data analytics for personalized product recommendations
- Foster partnerships that combine traditional trust with fintech agility
By championing platforms that foster continuous innovation, forward-looking firms can create ecosystems where new services emerge organically, meeting evolving needs and unlocking untapped revenue streams.
The road ahead for open finance is one of boundless potential. As data sharing permeates every segment of the financial landscape, a new generation of accessible, inclusive and tailored services will emerge. Stakeholders who embrace collaboration, invest in secure infrastructure and keep the customer at the center will lead this transformation, forging a future where finance truly serves everyone.
