The business of open banking
Key Takeaways
Monetise your assets
Open banking offers you a unique opportunity to market APIs as products to deliver customer value in context. Find out how it enables your products to be discovered, evaluated and purchased where and when they are most needed.
Jumpstart innovation
Most customer journeys begin online or using a mobile device. Open banking creates the opportunity to open up a new market for your products, including:
- Near real-time decisions for personal lending
- Mortgages - positioned earlier in the customer journey
- Initiating payments - as part of a seamless customer experience
Develop new pricing and revenue models
Explore API pricing models in other markets and get started on the road to new revenue.
Open Banking Monetization: Key FAQs
What are the most common API pricing models in open banking?
The most common API pricing models in open banking include free (freemium), subscription, pay-per-use, pay-per-transaction, revenue share, and premium service tiers. Each model balances adoption incentives with revenue predictability.
Freemium models encourage ecosystem growth but may limit direct revenue. Subscription models offer predictable income but can deter experimentation. Revenue sharing aligns partner incentives but requires more complex governance. The optimal model depends on target partners, API maturity, and strategic goals.
For a comparative breakdown of advantages and disadvantages, refer to the downloadable Thought Leadership.
What are the key risks and strategic considerations in open banking?
The key risks in open banking include revenue cannibalization, data security exposure, unclear legal responsibilities, and ecosystem dependency. However, avoiding participation is often a greater risk than engagement.
Banks must assess technical readiness (legacy systems, real-time capabilities), business case viability, regulatory exposure, and partner governance. Clear API versioning, data licensing, and developer ecosystem management are critical success factors. Institutions that proactively define their role - manufacturer, distributor, or platform orchestrator- are better positioned to compete.
The full paper provides a structured checklist for getting started.
How should banks design an API pricing model that drives adoption and revenue?
Banks should design an API pricing model that balances low-barrier adoption with scalable revenue generation. The most effective approach starts with a free or sandbox tier to encourage developer onboarding, followed by tiered pricing based on usage volume, performance level (e.g., real-time vs. batch), or business value delivered.
Pricing should reflect measurable outcomes - such as transaction volume, lending conversions, or data enrichment impact - rather than just API calls. Clear governance, transparent billing, and predictable cost structures are essential to avoid deterring enterprise partners. A well-structured API pricing strategy aligns ecosystem incentives with long-term growth.
The full Thought Leadership provides a detailed framework for evaluating pricing trade-offs and commercialization readiness.
