Issue link: https://go.axway.com/i/1321495
34 Open Banking APIs State of the Market Report 2020 As open banking matures, new ways to measure whether open banking API are generating measurable improvements in individual and household consumer financial health should be an essential part of the ecosystem fabric. Our Open Banking APIs State of the Market 2020 Report aggregates only those fintech that are known to be busing open banking APIs. This is a fairly small subsection of all new digital finance products. We calculate these fintech by reviewing: \ Known regulatory registers of fintech that are accredited to use open banking APIs, such as those listed in the EUCLID European register and the UK's FCA register \ Fintech highlighted on bank developer portals as example case studies that are consuming the bank's APIs \ Fintech partners in key industry-led networks such as those participating in Open Banking Nigeria and Financial Data Exchange, both of which are building open banking API standards. Looking at only these fintech known to be using open banking APIs gives us a clearer idea of how consumers are benefiting from new open banking products. At present, without the ability to measure validated improvements in financial health, we can look at what sort of products and services are being made available to see whether they are assisting in financial health improvements. SOLE TRADERS One-third (35%) of all fintech using open banking APIs focus on creating products primarily targeting sole traders and the self- employed. Sole trader/self-employed and SME markets are assumed to be of greater interest to fintech for a number of reasons: \ There is less regulatory oversight than when providing products direct to consumers \ There are more opportunities to build stable, consistent revenue streams from business customers who are more willing and less volatile when paying monthly subscription fees \ The value chain is less complex than for individual consumer- based products \ There is less need to consider niche, personalized customer segments: marketing can speak more broadly to groups of customers.