Digital Banking Market size is set to surpass USD 10 trillion by 2027, according to a new research report by Global Market Insights Inc.
Rapid strides taken by the global fintech industry as it has gained significant momentum is likely to boost the digital banking demand. An estimated fintech investment of USD 98 billion was made in H1 2021 compared to USD 121.5 billion globally in 2020. Acknowledging the rise of fintech players, banks are looking to increase their investments in technology while some banks have started partnering or investing in them. Fintech companies have started delivering more banking functions, thus supporting the market growth.
Increased consumer spending in retail digital banking
The retail digital banking market held over 75% of the revenue share in 2020, which is majorly driven by retail stability, allowing large banks to offset the volatility of risky 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 & stable, thus contributing to market stability. Digital banking services are proving to be a profitable avenue for growth as the banking industry is experiencing a renewed interest in retail banking.
Mobile apps have become an ever more popular way to bank worldwide. Between 2015 to 2020, customer activity on banking apps spiked by 354%, which proliferated the demand for digital banking infrastructure. Furthermore, the strong focus imparted on digital fund transfers amid the COVID-19 pandemic has created new market opportunities.
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Browse key industry insights spread across 325 pages with 410 market data tables and 39 figures & charts from the report, “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, 2021 – 2027”, in detail along with the table of contents:
Increasing affinity of digital banking users toward digital lending
Digital banking transactional services captured a market share of around 60% in 2020 as companies in the ecosystem continue to invest in digital instruments to compel new and current customers to make fast & easy payments, securely transfer money, and safely store their funds. The fintech industry’s efforts to innovate daily consumer transactions while addressing consumer pain points is the primary factor driving the adoption of digital banking transactional services.
Under the transactional service segment, loans acquire more than 15% of the digital banking market share in 2020. The growing demand for minimal documentation and hassle-less & faster loan approvals is augmenting the market expansion. Mobile manufacturers, Internet Service Providers (ISPs), telecom operators, and e-commerce players are entering the digital lending platform industry.
Widespread internet penetration and developments in financial technologies across North America
North America is anticipated to generate a revenue of nearly USD 700 billion by 2027 with transactional volume exceeding USD 60 trillion. Financial establishments in the region are focusing on improving their customer experience and providing a personalized experience to their customers. There is a steady rise in the number of North American consumers using mobile banking to manage their account information and to make transactions.
Focus on fueling fintech capabilities by key industry players
The global digital banking market has witnessed several banks undertaking various initiatives to accelerate growth in the fintech landscape and boost their competitive advantage. For instance, BBVA established a USD 250 million fintech fund and acquired financial technology companies, such as Simple (an American online-only bank), for USD 117 million, and Holvi, a digital bank from Finland, for an undisclosed amount. Traditional banks are trying to gain access to the technology of fintech start-ups as a part of their market expansion strategy.
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.