Issue link: https://recursos.axway.com/i/1321495
5 Open Banking APIs State of the Market Report 2020 EXECUTIVE SUMMARY The Open Banking APIs State of the Market 2020 Report shows an increased pace of open banking activity. Open banking platforms are growing around the world. Globally, there was a 269% annual growth rate in open banking platforms with a massive upswing in open banking API products being made available. In most regions, banks with the highest ranking market capitalization have invested in creating open banking API platforms. Latin America, Russia and the Middle East and Africa are falling behind in opening APIs, although there is still expanded open banking in these regions, just not at the pace of other regions. Open banking API products do not yet reflect the full range of opportunities that open banking can foster. 2020 has seen dynamic, strategic leadership amongst card processing, payments providers, and API aggregator services to create vibrant, open finance ecosystems around their platforms. These platforms aim to make it easier for businesses and startups to build new financial services and products that meet consumer and business demand. They are focused on integrating financial services into existing customer value journeys. Open banking could similarly expose financial functionalities that enable these types of services to be created, but to do so requires banks to work in partnership with external partners, leveraging business models that share revenue amongst various stakeholders. While there are some banks moving in this direction, it is becoming a small subset of leadership banks rather than the industry as a whole. Encouragingly, there is greater use of the OpenAPI Specification, API standards, and API security technologies amongst banks when opening APIs. While banks are "not there yet" in terms of shifting to new business models and opening their functionality to third parties, they have been laying the digital rails that can allow partnerships in future. Banks that embrace an Open Banking API platform model are seeing direct revenue increases. Indirect benefits are also being generated, including increased customer account creation and increased transactional volumes. There are signs that banks can also strengthen their customer relationships by offering open APIs. Customers can integrate multiple external services to their bank account, reducing the likelihood a customer will switch banks. 423 OPEN BANKING PLATFORMS 2845 OPEN BANKING API PRODUCTS 269 % ANNUAL GROWTH RATE