Open Banking Market Update

DATE: February 2024

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Our latest thematic report provides an overview of the wide applications of Open Banking technologies across various verticals, as financial services providers and Fintechs seek to leverage access to clients’ account data to offer existing products with less friction and develop inherently novel solutions.

Key Highlights:

✓ Landscape & Trends: We present a stratified landscape of +90 Open Banking platforms, categorised by their focus vertical, end-user segment, and underlying infrastructure capabilities. We also explore structural tailwinds of the sector, including the evolving global regulatory landscape, as well as commonly perceived risks of Open Banking technologies. Lastly, we delve deeper into key differentiating factors for companies to avoid commoditisation in the rapidly growing Open Banking space.

✓ Private Markets: Given the continued rise in innovative applications of APIs across Fintech verticals, there has been significant funding activity in Open Banking companies in recent years. Notable financing rounds in 2023 include Abound's $601m fundraise (mix of debt and equity), Brite Payments' $60m Series A and Volt.io's $60m Series B. 
Although M&A activity has been limited to date, with investors focused on supporting earlier-stage companies to reach platform maturity and scale, Visa's acquisition of Tink for $2.1bn (Jun-21) and Mastercard's acquisition of Finicity, a Mastercard Company for an initial consideration of $825m (Jun-20), stand out as two sizeable M&A transactions in recent years.

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