Digital Banking Market size was estimated at $7.9 trillion in 2021 and is growing at a CAGR of 40.50% during the forecast period of 2022 to 2032.
Banking is transitioning online or digitally from the traditional banking program services and activities that were previously only available to consumers when they were physically present in a bank branch. Digital banking is a simple, convenient, and fast way of technology that enables individuals or businesses to manage and control their daily finances. For example, to transfer payments, pay bills, and check balances, the consumer merely needs to log in with any internet-connected device. Nowadays, most banks offer digital banking solutions, though the features and advantages vary by bank.
During the ongoing COVID-19 pandemic, online banking services have gained market traction. Numerous private sector initiatives aimed at optimizing banking operations and increasing cost efficiency via digital media in the aftermath of COVID-19 are functioning as spurs for the growth of the digital banking industry.
While neo-banks remain a niche market, they are growing faster in market share and can serve customers for about one-third the cost of regular banks. Fintechs are focusing their efforts on profitable value chain areas. Large technology companies offer a significant danger, and a few incumbents are spending aggressively in innovation, eclipsing laggards. Yet, issues like integrating online banking platforms with legacy applications, network outages, and security concerns can result in significant losses for banks, hence impeding the markets growth.
As a result of the COVID-19 issue, online banking activity has increased, including more digital transactions, while branch visits have decreased. Individual individuals and businesses that previously rejected online banking have been forced to adopt online banking apps as their default option due to the present pandemic. The pandemic may result in improved consumer convenience, which may raise demand in the longer term. On the vendor side, the bulk of suppliers have been focusing their efforts on client acquisition by delivering services that are in high demand during these trying times.
Digital Banking Market Growth and Trend
The primary drivers of the digital banking industry are predicted to be cost-effectiveness and simplicity of use advantages of digital banking over traditional banking systems, increasing adoption of electronic gadgets, and easy access to high-speed internet services. However, the growing threat of data breaches and cyber-attacks on banking servers may cloud the outlook for the digital banking market. Additionally, technical breakthroughs such as blockchain integration are bolstering the worldwide digital banking market. Consumers increased reliance on digital banking services for most of their day-to-day financial transactions is predicted to drive market growth. As a result, banks are investing in digitizing their financial assistance to differentiate themselves from finance start-ups and other tech companies.
Cloud computing has fundamentally altered how firms operate across a range of end-user industries, owing to cost economies of scale in production. Globally increasing adoption of cloud computing is driving growth in cloud traffic.
By Banking Type (Retail Banking, Corporate Banking, and Investment Banking), By Solution (Payments, Processing Services, Customer and Channel Management, and Risk Management), By Organization Size (Large Enterprises and Small and Medium-Sized Enterprises), By Technology (BaaS (Banking as a Service), BaaP (Banking as a Platform), Cloud-Based, White Label Banking, and Chatbots), and By Payment Vertical (Banking Cards, Unstructured Supplementary Service Data (USSD), Uniform Payment Interface (UPI), Mobile Wallets, Point of Sale (POS), Mobile Banking, Internet Banking, and Micro ATMs)
Digital Banking Market Segmentation
The digital banking market is segmented by banking type, solution, organization size, technology, and payment vertical. Based on banking type, the market consists of retail banking, corporate banking, and investment banking. Based on solution, the market consists of payments, processing services, customer and channel management, and risk management. By organization size, the market is divided into small and medium enterprises (SME) and large enterprises. Based on technology, the market is segmented into (BaaS (Banking as a Service), BaaP (Banking as a Platform), cloud-based, white label banking, and chatbots. Based on payment vertical, the market is divided into banking cards, Unstructured Supplementary Service Data (USSD), Uniform Payment Interface (UPI), mobile wallets, Point of Sale (POS), mobile banking, internet banking, and micro ATMs.
Digital Banking Market Country Analysis
Throughout the projected period, North America is expected to lead the market. The goal of the majority of financial institutions is to retain a customer for life. As a result, big American banks such as Bank of America and others are implementing critical growth strategies such as product releases to preserve their customer base and customer data to engage existing customers and increase their sales. Global digital banking is mainly driven by growing Asia-Pacific economies such as China, India, and Japan. The potential for digital banking in these various Asia-Pacific countries results from increasing smartphone penetration and measures such as consumer education programs and media advertisements for mobile banking.
Digital Banking Market Share and Competition
The major players operating in the global digital banking market are ACI Worldwide, Ally Financial Inc., Backbase, Capital Banking Solution, CR2, Digiliti Money, Inc., Fiserv, Inc., Infosys Ltd., Innofis, JPMorgan Chase & Co., Kony, Inc., Microsoft Corporation, Oracle, Tata Consultancy Services, Technisys, Temenos Headquarters SA, TRG Mobilearth Inc., and Urban FT.
• Historical data available (as per request)
• Estimation/projections/forecast for revenue and unit sales (2022 – 2032)
• Data breakdown for every market segment (2022 – 2032)
• Gross margin and profitability analysis of companies
• Price analysis of each product type
• Business trend and expansion analysis
• Import and export analysis
• Competition analysis/market share
• Supply chain analysis
• Client list and case studies
• Market entry strategy
Industry Segmentation and Revenue Breakdown
Banking Type Analysis (Revenue, USD Million, 2022 – 2032)
• Retail Banking
• Corporate Banking
• Investment Banking
Organization Size Analysis (Revenue, USD Million, 2022 – 2032)
• Small- and Medium-Sized Enterprises
• Large-Sized Enterprises
Solution Analysis (Revenue, USD Million, 2022 – 2032)
• Processing Services
• Customer and Channel Management
• Risk Management
Technology Analysis (Revenue, USD Million, 2022 – 2032)
• BaaS (Banking as a Service)
• BaaP (Banking as a Platform)
• White Label Banking
Payment Vertical Analysis (Revenue, USD Million, 2022 – 2032)
• Banking Cards
• Unstructured Supplementary Service Data (USSD)
• Uniform Payment Interface (UPI)
• Mobile Wallets
• Point of Sale (POS)
• Mobile Banking
• Internet Banking
• Micro ATMs
Region Analysis (Revenue, USD Million, 2022 – 2032)
• North America
• United States
• South America
• United Kingdom
• Asia Pacific
• South Korea
• Middle East
• GCC C ountries
• South Korea
• South Africa
• Rest of World
Digital Banking Market Companies
• ACI Worldwide
• Ally Financial Inc.
• Capital Banking Solution
• Digiliti Money, Inc.
• Fiserv, Inc.
• Infosys Ltd.
• JPMorgan Chase & Co.
• Kony, Inc.
• Microsoft Corporation
• Tata Consultancy Services
• Temenos Headquarters SA
• TRG Mobilearth Inc.
• Urban FT.
• United States Digital Banking Industry Research Report
• Europe Digital Banking Industry Research Report
• Asia Pacific Digital Banking Industry Research Report
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