Open Banking: Europe Leads, Latin America Accelerates

Since implementing the PSD2 (Payment Services Directive) in 2018, Open Banking has gained significant traction across Europe.

By 2020, approximately 12.2 million Europeans had already used Open Banking services—nearly half of global users.

In 2023, the European Open Banking market generated around $9.28 billion in revenue. Projections show that this figure could climb to $44.9 billion by 2030, reflecting a compound annual growth rate (CAGR) of 25.3% between 2024 and 2030.

While the UK remains the undisputed leader in Open Banking adoption, other regions in Europe are also making significant progress:

• Nordic Countries – Denmark, Norway, and Sweden stand out thanks to their advanced digital infrastructure and consumer readiness, positioning them as Open Banking benchmarks.

• Germany and France – These countries are strengthening their API standards and regulatory frameworks to support ecosystem growth.

• Emerging Markets – Lithuania and the Netherlands are steadily advancing, focusing on increasing consumer awareness and improving regulations.

Europe is set for sustained growth, with estimates forecasting a 470% increase in API requests by 2027, reaching 580 billion globally. Europe alone is expected to account for nearly 70% of this, consolidating its leadership in Open Banking innovation.

Open Banking in Action: Value Across the Ecosystem

Open Banking delivers real, high-impact value to consumers, businesses, and financial institutions.

For consumers, it means greater control over financial data, personalized product offerings, better rates, and a smoother banking experience. Open APIs allow users to connect their accounts to personal finance apps, receive savings recommendations based on actual behavior, and access fairer lending, even with limited credit history.

Open Banking enables faster and more accurate identity and income verification for businesses, streamlining onboarding, risk assessment, and automated collections. This reduces operating costs, speeds up decisions, and improves user experience.

Open Banking is a strategic opportunity for financial institutions to innovate without overhauling their entire tech stack. It enables collaboration with fintechs, expands digital channels, and enhances the value proposition through third-party services—all while maintaining regulatory compliance.

Additionally, Open Banking is paving the way for more advanced models like Open Finance and Banking-as-a-Service (BaaS). These approaches allow banks and other businesses to embed financial services within broader digital ecosystems—e-commerce platforms, ERPs, mobility apps, and more.

The true value of Open Banking lies not only in the technology itself but in its ability to reshape the financial industry around transparency, interoperability, and user-centricity.

As regulatory frameworks evolve and consumer awareness grows, Open Banking is set to keep transforming the financial services landscape—driving transparency, competition, and better customer solutions.

Latin America: An Emerging Open Banking Ecosystem

While Europe consolidates its leadership, Latin America is rapidly adopting Open Banking and Open Finance models:

• Brazil – Leading the region with over 15 million users and 4.8 billion successful API calls in 2023, boosted by integration with its instant payment system, Pix.

• Mexico – A regional pioneer with its 2018 Fintech Law, which established the foundation for secure financial data sharing through APIs.

• Colombia – Incorporating Open Finance and financial portability into its National Development Plan.

• Chile – Moving forward with a new fintech law with Open Finance regulation.

• Argentina and Peru – Implementing initiatives to promote digitalization and lay the groundwork for solid Open Banking frameworks.

The region’s fintech ecosystem has grown exponentially—from 703 companies in 2017 to over 3,000 in 2023.

Given the significant challenge of financial inclusion in Latin America, Open Banking represents a technological leap and a real opportunity to democratize access to financial services.

Our Experience at WAU: Secure Integration, Decoupling, and Digital Transformation for the Financial Sector

At WAU, we understand that transitioning to Open Banking and Open Finance models involves more than meeting new regulations. It requires transforming the core architecture of traditional financial systems.

Our extensive experience includes:

✅ Custom development for banks and fintechs

✅ API-fication of systems – Secure and scalable API design and exposure

✅ Decoupling monolithic architectures – Enabling agile and microservices-based integration

✅ Secure integration with internal and external systems – Fully aligned with top data protection and compliance standards

We believe the future of financial services lies in collaboration, and that secure, efficient integration is the foundation for scaling successful Open Banking models.

If your institution is exploring strategies to prepare, expand, or strengthen its Open Finance ecosystem, WAU can help you design and execute the right plan for your organization.

Juan Carlos Garavito