Digital Banking Market size worth over $12 Tn by 2026
Published Date: October 12, 2020 Authors: Preeti Wadhwani, Sachin Kasnale
Digital Banking Market size is set to surpass USD 12 trillion by 2026, according to a new research report by Global Market Insights, Inc.
Increasing demand to facilitate banking transactions in an efficient and user-friendly process will fuel the digital banking industry demand. The growing penetration of mobile devices, such as smartphones & tablets, and rapidly expanding internet connectivity are expected to support the rising adoption of digital banking solutions through 2026.
Governments in several emerging economies have directed their focus on credit seekers to increase financial inclusion of people, supporting the regional market growth. Rising participation of customers from these markets in the digital ecosystem will facilitate the digital banking market growth.
Growing interest in mobile banking services will boost the online banking market statistics
The advent of interactive services with fewer clicks and customized product offerings have led to a rise in mobile banking. Certain mobile applications and websites save customer data and offer real-time personalized services in response to changing customer habits. Furthermore, decreasing prices of mobile internet have led to a sharp increase in the uptake of digital banking services as opposed to conventional banking.
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Amid the ongoing COVID-19 pandemic, customers are preferring online/remote services for their banking applications instead of personal visits for routine banking services. Fluctuating banking interest rates and slowdown of investment activities will play a vital role in determining how digital banking vendors and customers mitigate the risk that this virus presents to businesses. However, rising preference of consumers toward internet-based banking and the surging use of digital payment wallets are expected to lead to a positive market outlook.
Browse key industry insights spread across 325 pages with 408 market data tables and 38 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, 2020 – 2026” in detail along with the table of contents:
Growing adoption of modern analytics technology by investment banks to support digital banking market growth
Digital investment solutions are enabling robot-advisory platforms to improve the customer experience in direct-to-consumer offerings and business-to-business offerings. Digital advice support platforms have the potential to expedite the onboarding process for clients, particularly the less affluent clients, where the advisor cannot afford to take as much time to work with the client directly. The technology assists a wide array of applications ranging from risk profiling to efficiently handling the administrative tasks of account opening.
Increasing popularity of technology solution for assessing credit risk profiles
The increasing digitalization is aiding faster and accurate lending process. Digital lending platforms are partnering with credit rating firms to access the credit risk information and offer credit accordingly to the borrower through partner financial institutions. The growing demand for least documentation and hassle-less & faster loan approvals is proliferating the digital banking market growth. Digital solutions also ensure a consistent credit approval process for their existing customers and newly acquired members. The technology provides a good first experience to new customers while interacting with the digital lending process.
Integration of advanced technologies such as AI and blockchain to fuel the North America market growth
The North America digital banking market is expected to register steady gains at a CAGR of nearly 4% through 2026 due to the growing focus on integrating advanced technologies into banking platforms to improve the overall efficiency. The emergence of advanced technologies, such as AI and blockchain, aids market players to innovate new operating models to offer credits to several individuals and businesses. The data-driven AI digital lending platform is expected to speed up the online lending process. The rising need to generate actionable insights to reduce operational costs, identify potential defaulters, improve customer engagement, and better decision making is driving the deployment of AI technology in regional digital banking platforms.
Development of innovative digital solutions is the key strategy adopted by leading market players
The major market players are investing significantly in R&D to commercialize innovative product offerings in the market to gain a competitive advantage in the rapidly evolving marketplace. For instance, in July 2020, the U.S. Bank launched the U.S. Bank Smart Assistant, a banking by voice service, over its mobile banking application. The service features AI-backed voice commands to make a transaction through the mobile banking application.
Major digital banking market players are Bank of New York Mellon Corporation, Appway AG, CREALOGIX AG, Fidor Solutions AG, ebankIT, Etronika, Infosys Limited, Finastra, Halcom.com, ieDigital, Intellect Design Arena Limited, Kony, NETinfo Plc, NF Innova, Tata Consultancy Services Limited, Oracle Corporation, SAB, SAP SE, Sopra Steria, Technisys S.A., Temenos AG, and Worldline.