The Global State of Open Banking and Open Finance (Cambridge Centre for Alternative Finance)

Summary

• Open Banking and Open Finance have been made available by 95 jurisdictions.p.9
• Governance approaches are regulation-led in 54 jurisdictions and market-driven in 28 jurisdictions.p.9
• Among the 54 regulation-led jurisdictions, 32 are led by central banks and 19 by financial services authorities.p.9
• Of the 44 jurisdictions with a competition-enhancing objective, 23 are led by central banks.p.9
• For most jurisdictions it takes approximately two years from legislation or regulations to products going live in the market.p.9
• Taking a regulation-led approach can be around 22% faster than market-driven approaches.p.6
• A governance approach and sub-approach were assigned to 82 jurisdictions.p.10

Key insights

1. 18 jurisdictions on the market-driven end of the spectrum have regulators taking the lead in implementation.p.9
2. The study examines Open Banking and Open Finance developments across 95 jurisdictions with support of the UK FCDO.p.5
3. EMDEs are leading the way on Open Finance implementation.p.6
4. Open Finance extends the data-sharing and action initiation principles of Open Banking to a wider range of financial products.p.13
5. Where both Open Banking and Open Finance rules have been enacted, they were typically enacted within the same year.p.9