Open Banking has been adopted by 68 countries globally, with the majority electing for a regulatory-led approach, according to new research.
The study by Open Finance technology and advisory services provider Konsentus, part of its ‘Global Open Banking and Open Finance Map’, revealed that with 68 countries where Open Banking is either live or in development, this is representative of 35% of the world.
Of those Open Banking initiatives, 64% have been mandated by legislation, while only four markets are pursuing a market-led approach.
According to Konsentus, 26% of Open Banking initiatives lack formal regulation, but have strong regulatory support and a centralised program approach.
It found that this “hybrid” approach is proving particularly popular in Asia.
The 14 countries comprising the Eastern Europe and Central Asian Network (EECAN) is “a key region to watch”, given that more than 50% of the network have a live or active Open Banking implementation.
Mike Woods, chief executive officer of Konsentus, said: “Given that Open Banking is in its infancy, the fact that 35% of the world is pursuing an Open Banking program is testament to its relevance and importance in the global financial digitisation agenda.
“We anticipate this number will continue to grow and that Open Banking testing and implementation will intensify in 2024.”
Konsentus’ map categorises countries based on whether their Open Banking implementation is live or in development and also reflects whether a market is focused on Open Banking, or has made the move to Open Finance.
Woods added: “Konsentus has become much more rigorous in its criteria for this important asset to reflect the real development on the ground. As such, we have introduced a hybrid category, as well as showcasing which markets are Open Banking versus Open Finance versus Open Data.
“The map will provide a valuable guide for the industry to track progress and spot new developments.”
The judges agreed that Konsentus has been “instrumental in establishing global Open Banking standards and championing the adoption of Open Finance globally”.
