Global Application Programming Interface (API) Banking Market 2023-2030

Global Application Programming Interface (API) Banking Market 2023-2030

Global Application Programming Interface (API) Banking Market Size, Share & Trends Analysis Report by Application (Personal Banking, Corporate Banking, Wealth Management, and Others), by Deployment (On-Premise and Cloud), by Component (Solution, and Service), and by Enterprise Size (Large Enterprises and Small and Mid-Sized Enterprises (SMEs)) Forecast Period (2023-2030)

The global application programming interface (API) banking market is anticipated to grow at a CAGR of 20.5% during the forecast period (2023-2030). A banking API is the software intermediary that allows a third-party app to connect with financial institutions and obtain the required financial data. Owing to this factors, the BFSI industry players are able to fulfill the growing demands for digital banking. The growing adoption of significant technological advancements such as cloud computing and big data analytics in the banking industry is another key factor supporting the market growth. According to Oracle, Use Oracle’s SaaS-based, packaged API solution to jump-start API banking with more than 1,800 ready-to-deploy business and foundational banking APIs. The cloud-native solution enables banks to comply with open banking regulations and accelerate innovation in a new digital ecosystem. For instance, in February 2023, Oracle launched Oracle banking cloud services of componentized, composable cloud-native services. by using this platform, the company provides services such as wide limits and collateral management, global payment processing for API management, retail onboarding and originations, and new self-service digital experience capabilities. The new services are built and running on the high performance, scalability, security, and compliance of Oracle Cloud Infrastructure, including OCI’s Oracle Kubernetes Engine.

Segmental Outlook

The global application programming interface (API) banking market is segmented on the application, deployment, component, and enterprise size. Based on the application, the market is sub-segmented into personal banking, corporate banking, wealth management, and others which includes customer, payment, and account information. Based on the deployment, the market is sub-segmented into on-premise and cloud. Based on the component, the market is sub-segmented into solution and service. Further, based on the enterprise size, the market is bifurcated into large enterprises and SMes. Among the applications, the personal banking sub-segment is anticipated to hold a considerable share of the market owing to the facilities provided by banks to the customers such as customer API, payment initiation API, and log-in with bank API.

Cloud Sub-Segment is Anticipated to Hold a Considerable Share of the Global Application Programming Interface (API) Banking Market

Among the deployment segment, cloud sub-segment is expected to hold a considerable share of the global API banking market. This is owing to the growing cloud native technology, through which banks can streamline the process of creating and managing APIs without the burden of managing the underlying infrastructure, while applying non-intrusive policy enforcement to the runtimes that support them. For instance, in June 2022, Atos and IBM supported European financial enterprises and institutions to build trust in the cloud and comply with EU regulations. that enable organizations, including operators of vital importance (OIV) and operators of essential services (OES) to go a step further in the adoption of cloud technology. Atos enables organizations using the IBM Cloud for Financial Services to benefit from its expertise in cloud security.

Regional Outlook

The global application programming interface (API) banking market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America). Among these, the Asia-Pacific region is anticipated to hold a prominent share of the market around the globe. Various government financial organizations such as Monetary Authority of Singapore (MAS) and the Reserve Bank of India (RBI), are increasingly focusing on promoting open banking, in turn encouraging utilization of API.

North America Region is Expected to Grow at a Significant CAGR in the Global Application Programming Interface (API) Banking

Among all the regions, North America is anticipated to grow at a considerable CAGR over the forecast period. Regional growth is attributed to the presence of major BFSI players, the early adoption of digital banking solutions, and government regulations promoting open banking. For instance, in October 2022, Bank of America expanded its cash payment API capability to over 350 payment types. The development comes as APIs continue to transform business-to-business (B2B) and business-to-consumer (B2C) transactions given the ability of APIs to provide real-time data, reduce costs and improve operational efficiencies. The capabilities of the enhanced CashPro Payment API spans is such as More than 350 payment types in 38 markets globally, 7 real-time payment schemes and services such as Zelle in the US and Pix in Brazil, Domestic and cross-border wires, and the Ability to execute payments in bundles, helping clients avoid or reduce backlogs in payment queues.

Market Players Outlook

The major companies serving the global application programming interface (API) banking market include Citibank, Deutsche Bank, Finastra, Google LLC, and IBM Corp., among others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in March 2022, Razorpay acquired izealiant technologies that pursue state-of-the-art payment banking technologies to meet evolving business requirements while tackling complex challenges of financial industry.

The Report Covers

Market value data analysis of 2022 and forecast to 2030.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global application programming interface (API) banking market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.