USD 26.83 billion
Digital Banking Market Size, Share, Growth Analysis, By Component(Platforms, Solutions and Services (Professional services {consulting, implementation, support and maintenance}), By Banking type(Retail Banking, Corporate Banking, Investment Banking), By Mode(Online, and Mobile), By Deployment type(On-premises, and cloud), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG40A2007 |
Region:
Global |
Published Date: March, 2024
Pages:
207
|Tables:
59
|Figures:
77
Digital Banking Market Insights
Global Digital Banking Market size was valued at USD 26.83 billion in 2022 and is poised to grow from USD 32.22 billion in 2023 to USD 139.48 billion by 2031, growing at a CAGR of 20.10% during the forecast period (2024-2031).
The growth of the digital banking business will be significantly accelerated by an increase in new fintech players. These days, fintech companies provide a wide range of digital banking services on their platforms, focusing on areas like payments, investments, insurance, loans, and asset management, among others. These platforms are most frequently preferred by customers who are technologically astute, well connected, and selective. With fintech companies and outside apps, banks are working together more frequently. Both sides benefit from this since it gives customers more control over their money and improves user experience without necessitating a system-wide system redesign for the bank. These customers are accustomed to the digital experiences provided by online merchants and anticipate the same user experience from banks. The requirement for dependable infrastructure by the banks to efficiently carry out UPI transactions has increased as a result of the rising use of third-party real-time payment services like Whatsapp Pay and PhonePay. For instance, Plaid, a fintech business that enables applications to interact with clients' bank accounts quickly and instantly, was just acquired by Visa for USD 5.3 billion. These technological changes have raised demand for cloud infrastructure in the digital banking sector. Over 197 million Americans, or over 75% of the country's population, will have used digital banking by the year 2022. In the upcoming years, it's anticipated that the region's market growth will pick up due to the region's strong presence of major market players.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Solutions
Fastest Growth
Solutions
Growth Rate
20.10% CAGR
Digital Banking Platform Market ($ Bn)
Country Share for Asia Pacific Region (%)
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Digital Banking Market Segmental Analysis
Global digital banking market is segmented on the basis of banking type, component, mode, deployment type and region. By banking type, the market is segmented into retail banking, corporate banking, and investment banking. By component, the market is segmented into platforms, solutions and service. By mode the market is segmented into online and mobile. By deployment type, the market is segmented into on-premises and cloud. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Analysis by Component
The solution segment held the greatest market share and is anticipated to expand at a CAGR of 13% during the forecast period. The management of established communication between bank professionals and consumers, an increase in investment in solutions for quicker loan processing, and an increased focus on customer acquisition among bankers all contribute to the market's expansion. Additionally, lenders are reorienting their efforts to provide borrowers with a better experience as well as practical and affordable solutions for quick loan approvals. Additionally, extensive use of cutting-edge technologies like predictive analysis and others is one of the key drivers of the digital banking platform market growth.
The growing market is services. Support services serve as a support system for any organization since they assist with the deployment and integration of various digital banking systems in a business ecosystem. They are essential to digital banking because they help clients get what they need, such as quick loan processing and less paperwork. In order to ensure that platforms operate efficiently throughout the loan management process, end users are increasingly adopting services. It follows that increasing the use of digital banking systems will increase demand for these services.
Analysis by Banking type
The market's largest contributor, retail banking, is anticipated to expand at a CAGR of 14.4% over the course of the forecast period. Because consumers are placing a greater emphasis on managing their finances and turning to digital tools for direction and insight, the retail banking industry is growing at the fastest rate. Banks have also come to understand that Fintech is an opportunity rather than a threat to consumers. Inflation and rising interest rates are predicted to create new opportunities for profit in deposit, banking, and wealth accounts. Additionally, businesses that can launch new products quickly to attract new clients and spur quick client acquisition are in the best position to boost revenue and profit in this emerging online market.
The market is divided into online and mobile banking according to the corporate banking method. The market's largest contributor, internet banking, is anticipated to expand at a CAGR of 12.7% over the course of the projected period. Mobile banking, net banking, and omnichannel banking are terms that are frequently mixed up with online banking. Although the processes mentioned above are part of this type of banking, it also includes crowdfunding, peer-to-peer, peer-to-peer, peer-to-peer, cryptocurrency, IT support, and financial platforms, which online banking vendors offer to different banks. Additionally, the rise of Fintech, which are computer programmes, the preference for digitization and automation, and technologically supported financial services all contribute to the market's expansion
Digital Banking Platform Market By Type
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Digital Banking Market Regional Insights
North America contributed the most to revenue and is expected to expand at a CAGR of 12.7%. The digital transformation of North American countries' end-to-end credit journeys has greatly aided in providing a uniquely personalized and simple banking experience. It is clear that nations like the U.S. are already benefiting greatly from financial industry innovations and technical breakthroughs, such as digital lending. The greater creation of dynamic and user-friendly user interfaces for websites and applications brought about by information technology advancements has also changed consumers' preferences for financial services. Due to the presence of significant international businesses and a sizable youth population with strong product awareness, it has the most sophisticated online banking customer base.
The second largest region is Europe. By 2030, it is anticipated to reach USD 5175 million, growing at a 13.1% CAGR. In order to continuously improve contracting and disbursement criteria and covenants, European FinTech has implemented an automated digital process and an expanding number of precise data-driven, model-based decision-making tools. Furthermore, with the rise in app-based payments, smartphone-dependent European consumers have embraced mobile banking, fueling the market's expansion. The expansion is anticipated to be fueled by the increase in internet usage and the high proportion of young people who use mobile and online banking services.
Digital Banking Platform Market By Region
- Largest
- Fastest
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Digital Banking Market Dynamics
Digital Banking Market Drivers
Increasing Awareness of Cybersecurity Risks to Bolster Market Growth
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The banking industry is facing increasing competition from non-traditional players such as fintech companies, payment service providers, and technology giants. Digital banking services can help traditional banks to stay competitive by offering innovative and convenient banking services to customers.
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Cybersecurity is a major concern for customers and banks alike. Digital banking services offer enhanced security features and protection against fraud, driving the adoption of digital banking services by customers who are increasingly aware of the cybersecurity risks associated with traditional banking services.
Growing Smartphone Penetration
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The global proliferation of smartphones and internet access has significantly increased the user base of digital banking platforms, propelling the growth of the market. Convenient and easily accessible banking services via digital channels are becoming more necessary as more people get access to mobile devices.
Growing Customer Expectations for a Seamless Banking Experience
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Most customers want their banking to be easy to use, personalised, and seamless. With features like mobile payments, real-time account access, and personalised financial information, digital banking platforms are fulfilling evolving client expectations and propelling the business forward.
Financial Institutions' Cost Reduction
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By streamlining operations, automating procedures, and cutting overhead related to traditional brick-and-mortar branches, digital banking platforms enable financial institutions to cut costs. This encourages banks to invest in digital transformation, which drives market expansion.
Restraints
Lack of Awareness and Trust to hinder market growth
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A significant portion of the population, particularly in developing countries, is still unaware of digital banking services and lacks trust in digital banking providers. This limits the adoption of digital banking services in these regions.
Consumer Preference for Traditional Banking
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Despite the convenience and efficiency of digital banking, a significant restraint on the global market is consumer preference for traditional brick-and-mortar models. Many users, particularly older demographics, place high value on face-to-face interaction and the perceived security of physical branches. This ingrained trust can slow the adoption of digital tools, even for basic transactions. Overcoming this preference will require continued innovation in digital security and user experience to build confidence and encourage a shift towards online banking.
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Digital Banking Market Competitive Landscape
The competitive environment in the market for digital banking platforms is fragmented due to the presence of numerous regional and international market participants. Banks all across the world benefit from providing a good digital channel experience. A safe solution that gives a consistent user experience across channels and devices and provides the insights necessary for informed decision-making is required by banks. To maintain their competitiveness in the industry, the players are implementing measures like collaborations and others.
Digital Banking Market Top Player’s Company Profiles
- ACI Worldwide Inc. (US)
- Appway AG (Switzerland)
- Cachet Financial Solutions Inc. (US)
- Capital Banking Solutions (US)
- CR2 (Ireland)
- EdgeVerve Systems Limited (India)
- Fidelity National Information Services, Inc. (US)
- Fiserv, Inc. (US)
- Infosys Limited (India)
- Kony, Inc. (US)
- NETinfo Plc (Cyprus)
- Oracle Corporation (US)
- SAB Group (France)
- SAP SE (Germany)
- Sopra Banking Software (France)
- Tata Consultancy Services Limited (India)
- Temenos AG (Switzerland)
- The Bank of New York Mellon Corporation (US)
- Worldline (France)
- Wipro Limited (India)
Digital Banking Market Recent Developments
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In June 2024, to further its digital capabilities, First State Bank teamed up with financial technology solutions company Jack Henry. The bank increased efficiency and streamlined processes by implementing Jack Henry's core processing technology. It also embraced Jack Henry's digital banking platform, Banno, which integrates features including payments, card management, user identification, and customer support. The purpose of this calculated action was to improve the bank's competitive position by utilising more than 950 APIs from outside fintech partners.
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In May 2024, The London-based FinTech startup Revolut planned to grow throughout the Asia Pacific area, with a focus on areas like Singapore and New Zealand. Revolut has already made significant progress in Australia, where it now has 600,000 users (about half the population of Hawaii) and a significant increase in transaction volume.
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In January 2023, Axis Bank collaborated with OPEN to provide a fully native digital current account to its clients, who include SMEs, independent contractors, home-based business owners, influencers, and others. Through this partnership, the greater business community will have access to Axis Bank's extensive banking services and OPEN's end-to-end financial automation capabilities for business administration, including payments, accounting, payroll, compliance, expenditure management, and other services.
Digital Banking Key Market Trends
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Mobile banking is gaining popularity due to its convenience and emphasis on sustainability. Danske Bank introduced a feature in June 2024 to track sustainable investments, integrating sustainability criteria into digital banking services. The "buy now, pay later" trend has transformed consumer spending habits, appealing to millennials and Gen Z. Google Pay introduced features in May 2024 to enhance online shopping convenience and security, including viewing card benefits at checkout and expanding "buy now, pay later" options like Affirm and Zip. These changes highlight the growing demand for digital convenience and personalized financial solutions.
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Emergence of Fintech Startups and Partnerships: Innovation and market expansion are fueled by the rise of fintech startups that specialise in digital banking solutions as well as partnerships between technology companies and traditional financial institutions. Through collaboration, stakeholders can take advantage of cutting-edge digital capabilities, quicken the pace of product creation, and boost their competitiveness in the dynamic financial services market.
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Increasing Need for Contactless Banking Products and Services The need for contactless banking solutions has been fueled by shifting customer tastes and an increasing emphasis on safety and hygiene. As financial institutions place a premium on the development of contactless and remote banking capabilities in response to evolving customer demands, the market is expanding due to the safe and practical methods that digital banking platforms give users to conduct transactions, manage accounts, and access financial services without having to physically interact with financial institutions.
Digital Banking Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyzes the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to our analyses, the global digital banking market is expected to grow significantly in the coming years, driven by several factors such as the increasing adoption of smartphones and other mobile devices, rising internet penetration, and the growing demand for convenient banking services. The market is also being driven by the increasing need for cost-efficient and secure banking services, as well as the shift towards a cashless economy. The increasing competition is driving innovation in the market, with players focusing on developing advanced digital banking solutions that offer a range of features and functionalities. The global digital banking market presents significant growth opportunities for market players, driven by the increasing adoption of digital technologies and changing consumer preferences. The market is expected to witness strong growth in the coming years, with players focusing on innovation and the development of advanced digital banking solutions to meet the evolving needs of customers.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 26.83 billion |
| Market size value in 2031 | USD 139.48 billion |
| Growth Rate | 20.10% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Digital Banking Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Digital Banking Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Digital Banking Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Digital Banking Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Digital Banking Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Digital Banking Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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