Digital Banking Market Size By Type (Retail Banking, Corporate Banking, Investment Banking), By Service (Transactional [Cash Deposits & Withdrawals, Fund Transfers, Auto-Debit/Auto-Credit Services, Loans], Non-Transactional [Information Security, Risk Management, Financial Planning, Stock Advisory]), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026

Published Date: Oct 2020  |  Report ID: GMI2651  |  Authors: Preeti Wadhwani, Sachin Kasnale

Report Format: PDF   |   Pages: 325   |   Base Year: 2019




Summary Table of Contents Industry Coverage Methodology

Industry Trends

Digital Banking Market size estimated to be nearly USD 8 trillion in 2019 and is poised to register gains at over 6% CAGR from 2020 to 2026. Total global digital payment transactions exceeded 750 billion in volume, with the value accounting for over USD 700 trillion.
 

The increasing shift of consumers toward digital banking services to perform many of their day-to-day financial tasks is expected to drive the market growth. Consequently, banks are investing in the digitalization of their financial offerings to create a distinction from financial start-ups and other technology players.
 

Digital Banking Market
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Digital banking services have increasingly gained market traction amid the ongoing COVID-19 pandemic. Several private sector initiatives to optimize banking operations and improve cost efficiencies through the digital medium amid the economic slump caused by COVID-19 are acting as catalysts for digital banking industry growth.
 

Digital Banking Market Report Coverage
Report Coverage Details
Base Year: 2019 Market Size in 2019: 8 Trillion (USD)
Historical Data for: 2015 to 2018 Forecast Period: 2020 to 2026
Forecast Period 2020 to 2026 CAGR: 6% 2026 Value Projection: 12 Trillion (USD)
Pages: 325 Tables, Charts & Figures: 428
Geographies covered (21): U.S., Canada, UK, Germany, France, Italy, Spain, Netherlands, Russia, China, India, Japan, South Korea, Australia, Singapore, Brazil, Mexico, Argentina, UAE, Saudi Arabia, South Africa
Segments covered: Type, Services, and Region
Companies covered (22): Appway AG, Bank of New York Mellon Corporation, CREALOGIX AG, ebankIT, Etronika, Fidor Solutions AG, Finastra, Halcom.com, ieDigital, Infosys Limited, Intellect Design Arena Limited, Kony, NETinfo Plc, NF Innova, Oracle Corporation, SAB, SAP SE, Sopra Steria, Tata Consultancy Services Limited, Technisys S.A., Temenos AG, and Worldline
Growth Drivers:
  • Changing customer behavior
  • Increasing investment in Fintech
  • Supportive government policies
  • Growth of the ecommerce industry
Pitfalls & Challenges:
  • Lack for clear regulatory framework
  • Rising cybersecurity issues

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Increasing investments in fintech to fuel market revenue

The digital banking market is witnessing hefty investments to accelerate the pace of digital innovations. The fintech industry has been gaining significant momentum over the last five years. An estimated fintech investment of USD 135.7 billion was made across 2,693 deals globally in 2019. Acknowledging the rise of fintech players, banks are looking to boost their investments in digital banking technology while some banks have even begun partnering or investing in them, creating new avenues for market expansion.
 

For instance, corporations expect banks to offer services through APIs, where they are able to manage a number of activities from within their organization, reducing interactions, waiting times, and the need to visit the bank.
 

Increased consumer spending to spur the German retail banking market

In Germany, the retail banking segment held over 70% digital banking market share in 2019 driven majorly by the retail stability, allowing large banks to offset the volatility of riskier business lines such as trading and other capital-market-related activities. Retail banking is fundamentally a consumer-based business and grows as long as consumer spending remains strong and stable. Digital banking services are proving to be a profitable avenue for market growth as the banking industry is experiencing a renewed interest in retail banking.
 

Mobile apps have become an ever more popular way to bank in Germany. Between 2015 to 2019, customer activity on banking apps spiked by 354%, which has proliferated the market demand for digital banking infrastructure. Furthermore, the strong focus being imparted on digital fund transfers amid the COVID-19 pandemic has created new market opportunities.
 

Increasing use of mobile payment apps to drive transactional services in India

India Digital Banking Market Size

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In India, the transactional services set to attain a market share of more than 90% by 2026 as the rising penetration of smartphones and increasing uses of mobile payment apps are driving digital banking services into mainstream. For instance, as per the data reported by Reserve Bank of India (RBI), India witnessed over 1.1 billion transactions in the month of September 2019, amounting to USD 64.05 billion. A major portion of these transactions were fund transfers from mobile banking apps.
 

The Indian non-transactional digital banking services segment is set to attain20% CAGR 20% through 2026 propelled by the increased affinity toward digital technologies among younger generations. With the increasing stress on data-backed decisions by customers, digital banking enterprises are increasingly adopting AI and machine learning to analyze and predict the stock market movement. Fintech companies such as Stockal and Drivewealth allow individuals to leverage the money they can send abroad for investing in shares of foreign companies, triggering the market growth.
 

Changing customer behavior to augment industry growth in Europe

Europe Digital Banking Market Share

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Europe digital banking market held around 15% share in 2019. The regional market is characterized by changing customer behavior toward the adoption of new technologies and the digitization of the business. Online banking is becoming one of the most popular payment methods in Europe. Additionally, several nations including the Nordics, Austria, and Germany have witnessed significant reduction in physical cash transactions, accentuating the market revenue.
 

Acquisition of fintech startups the primary strategy among online banking market players

Several multinational companies and banking institutes in the global market are acquiring fintech start-ups to develop their own omnichannel digital banking products to serve their customers and reduce the churn rate. For instance, the second half of June 2020 witnessed Square, a payments company, acquire Verse, a European peer-to-peer payments startup; Mastercard acquire Finicity, an API provider; and Credit Sesame acquire Stack, a Canadian challenger bank.
 

Some of the key players operating in the digital banking market are Appway AG, Bank of New York Mellon Corporation, CREALOGIX AG, ebankIT, Etronika, Fidor Solutions AG, Finastra, Halcom.com, ieDigital, Infosys Limited, Intellect Design Arena Limited, Kony, NETinfo Plc, NF Innova, Oracle Corporation, SAB, SAP SE, Sopra Steria, Tata Consultancy Services Limited, Technisys S.A., Temenos AG, and Worldline.
 

This market research report on digital banking includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2015 to 2026 for the following segments:

Market, By Type:

  • Retail Banking
  • Corporate Banking
  • Investment Banking

Market, By Service:

  • Transactional Services:
    • Cash deposits and withdrawals
    • Fund transfers
    • Auto-debit/auto-credit services
    • Loans
  • Non-Transactional Services:
    • Information security
    • Risk management
    • Financial planning
    • Stock advisory

The above information has been provided for the following regions and countries:

  • North America:
    • U.S.
    • Canada
  • Europe:
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Netherlands
    • Russia
  • Asia Pacific:
    • China
    • India
    • Japan
    • South Korea
    • Australia
    • Singapore
  • Latin America:
    • Brazil
    • Mexico
    • Argentina
  • Middle East & Africa:
    • UAE
    • Saudi Arabia
    • South Africa

 

Frequently Asked Questions (FAQ) :

This business is anticipated to be highly lucrative, given that the global digital banking market size, in 2019, stood at USD 8 trillion, & may record 6% CAGR through 2026.
In Germany, the year 2019 witnessed retail banking segment holding 70% market share, mainly due to increasing retail stability.
The transactional services segment may record over 90% of India digital banking industry share, owing to the increasing penetration of smartphones and rising deployment of mobile payment apps.
The India non-transactional banking market share may register 20% CAGR through 2026, owing to rising affinity pertaining to digital technologies among the youth.
Europe digital banking market accounted for 15% revenue share in 2019 and may perform very well, owing to adoption of new technologies as well as the digitization of businesses.

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Premium Report Details

  • Published Date: Oct 2020
  • Pages: 325
  • Tables: 408
  • Charts / Figures: 20
  • Companies covered: 22
  • Countries covered: 21

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