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Digital Banking Market size worth over $13.5 Tn by 2032

  • Published Date: December 27, 2022

Digital Banking Market size is anticipated to reach USD 13.5 trillion by 2032, according to a new research report by Global Market Insights Inc.

A rise in the number of new fintech players will offer significant momentum to digital banking industry growth. Fintech companies these days offer a wide range of digital banking functions on their platforms that focus on categories like money transfers, payments, investments, insurance, lending, and asset management, among others. Customers that are digitally savvy, hyper-connected, and choice conscious mostly prefer using these platforms. These customers are also accustomed to the digital experiences offered by online retailers and expect the same user experience from banks.

However, unlike traditional banks, fintech companies lack clear regulatory requirements addressing the laws they must follow. For instance, every fintech company has a distinct and dynamic business model that operates on the principles of innovation. Since innovation brings about constant change, managing these companies becomes challenging. Additionally, while some fintech firms may function like banks, they might not provide all of the services that banks do.

Asia Pacific Digital Banking Market Share, By Country

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Wide-ranging benefits of corporate digital banking services

The digital banking market revenue from the corporate banking segment is expected to record USD 2.30 trillion by 2032. In corporate banking, large clients (wholesale clients and large corporations, and other institutions such as pension funds and government and public entities) are offered financial services. Compared to retail banking, which is focused on households and SMEs, corporate banking is a highly profitable division for banks. The advantages of digital corporate banking for banks include easier and quicker customer acquisition, improved customer experiences (and subsequently increased customer loyalty), and a quicker time to market for new and cutting-edge goods and services.

Changing consumer perspective to accelerate the use of non-transactional services

The non-transactional service segment is projected to witness around 9.8% CAGR from 2023 to 2032. The non-transactional service includes several different services, including customer support, asset management, account services, consulting, stock advisory, financial planning, and SMS services. Consumers are using mobile and digital media more frequently to search and buy goods and services as well as discuss their experiences after making a purchase. The technology is being used by digital banking services to better understand client pain points and give them a responsive, sympathetic, approachable, and connected service.

Browse key industry insights spread across 270 pages with 412  market data tables and 42 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]), COVID-19 Impact Analysis, Growth Potential, Regional Outlook, Competitive Market Share & Forecast, 2023 – 2032”, in detail along with the table of contents:

Growing use of advanced cash deposits and withdrawal services

The cash deposits and withdrawal segment held approximately 26% of the digital banking market share in 2022. Digital banking services are gaining substantial acceptance owing to improvements in cash deposits and withdrawal services. The convenience and ease of depositing and withdrawing cash have helped digital banking consumers to avoid visits to the bank branch. The majority of digital banks provide their customers the option to create a cash withdrawal voucher through their mobile banking app, which may then be used for cash withdrawals at any ATM without the need for a card.

Changing customer behavior to fuel Europe market

Europe digital banking market was worth more than USD 1.62 trillion in 2022. The financial services sector in Europe is undergoing significant changes due to changing consumer behavior, rising expectations, channel proliferation, disruption, inventive use of new technology, and company digitization. Online banking, which enables customers of banks or other financial institutions to conduct a wide range of financial transactions through websites, is quickly becoming one of the most well-liked payment methods in Europe.

Strategic expansion efforts to boost business expansion

Appway AG, CREALOGIX AG, Etronika, ebankIT, Fidor Solutions AG, Halcom.com, Finastra, ieDigital, Intellect Design Arena Limited, Infosys Limited, Kony, NF Innova, NETinfo Plc, Oracle Corporation, SAP SE, SAB, Sopra Steria, Technisys S.A., and Tata Consultancy Services Limited are some of the key participants in the digital banking market. These key players are focusing on innovative techniques to grow their product and service portfolio.

Authors: Preeti Wadhwani