Digital Banking Market Size
The global Digital Banking Market is estimated to grow from USD 8,892.4 Billion in 2019 to reach USD 14,789.4 Billion by 2027, at a CAGR of 6.6% during the forecast period from 2020-2027.
Digital Banking Market by Type (Retail, Corporate, Investment Banking); Services (Transactional [Cash deposits and withdrawals, Loans, Others], Non-Transactional [Information security, Others]) and by Region: Global Industry Analysis, 2020 – 2027
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Market Overview
Increasing adoption of mobile payment solutions along with changing customer behavior are expected to boost the market in the coming years. The shift of consumers towards digital banking services in order to perform various financial tasks on a daily basis is considered as one of the major factors for the high revenue of this market. Various banks are also currently investing into the digitalization of their financial offerings in order to create difference from their competitors.
Digital Banking Market by Type (Retail Banking, Corporate Banking and Investment Banking); by Services (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]) and by Region: Global Industry Trends, Dynamics, Competitive Insights and Forecast Analysis, 2020 – 2027
Market Drivers, Restraining, Opportunities
Drivers:
• Increasing adoption of electronic and mobile payment solutions
• Convenience and better rate of interest
• Increasing investment in Fintech
Restraints:
• Rising cybersecurity issues
• Lack for clear regulatory framework
Opportunities:
• Growth of the ecommerce industry and commerce industry
• Supportive government policies
Digital Banking Market Companies
• 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
• NETinfo Plc
• SAP SE
• Sopra Steria
• Technisys S.A.
• Temenos AG
• Others
The report provides key player analysis along with company revenue shares in order to give a broader overview of the market players in the Digital Banking Market. Some of the major players in market are as listed above.
COVID-19 Impact on Digital Banking market
COVID-19 pandemic has dramatically upsurged the rate of digital banking market thus impacting the market positively. It has forced various people who once resisted the online banking to adopt the digital banking technology as their new normal. Hence, in order to support and meet the financial needs of the consumers, various banks have developed digital banking apps and business models. According to the statistics,
— 35% of the customers have increased their online banking usage during COVID-19 and banks are experiencing all-time high numbers of check deposits and mobile logins
— VISA saw more than 13 million customers in Latin America make their first ever online transaction in the March quarter of 2020
— MasterCard reported more than 40% growth in contactless transactions globally during the pandemic
These statistics show the significant adoption of digital banking and thus is impelling the growth during the COVID-19 pandemic.
Segmentation Analysis
Based on Type
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Retail Banking segment accounted for the significant
share more than 70% of the global Digital Banking
market
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Amongst the banking types, Retail Banking held
72.62% share of the total digital banking industry in
2019. Retail banking involves consumer-based business and increases
as long as the consumer spending remains stable and strong. This is
majorly due to the retail stability in various developed countries
of Europe, thus allowing large banks to balance the volatility of
riskier business lines like trading and other capital related
activities.
Based on services
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The Transactional Services segment dominated the global
Digital Banking market by about 80% in 2019
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By services, the Transactional Services dominated the market with revenue share of 79.82% in 2019. The growing penetration of the smartphones and rising usage of different mobile payment apps is driving this segment majorly.
The non-transactional segment is expected to boost the market in the near future. It is estimated to grow with the fastest CAGR of approximately 7.9% during 2020 to 2027. The high growth of this segment is due to the growing affinity of young generation towards various digital technologies. Various digital banking technologies are widely adopting machine learning and AI to predict and analyze the market movements.
Regional Analysis
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North America acquired the maximum share of more than 48% of
the global Digital Banking market in 2019
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At regional level, North America dominated the digital banking market with 48.45% revenue share of global market in 2019. Europe was second leading regional market with revenue market share of 27.39% of the overall market. Online banking as a payment method is gaining huge popularity in the European countries.
Business digitization coupled with changing customer behavior in
adoption of latest technologies is contributing to the growth of
the European market. Various nations like Germany, Austria and
Sweden are significantly witnessing reduction in physical cash
transactions thus boosting the market size.
MARKET TRENDS
Driver: Increasing adoption of digital payment by Generation Y and Z to boost the overall market
Rising use of various digital payment gateways by millennials is driving the growth of this market. Generation Y (Born from 1980 to before 2000) is the first cohort to grow up with constant presence of computers and Generation Z (Born after 2000) from birth enjoys high access to technology and is thus naturally more inclined towards adoption of digitized services.
Online banking is the most prominent banking channel used by these both generations. These two generations are more likely to demand for ubiquitous access to digital services and products.
Also, enhanced user experience is driving the growth of this market. As the payment services get evolved, providing a better customer experience becomes more competitive. Also, government is increasingly providing reorienting facilities and making provisions for the products and services based on the technological needs of digitally-savvy generations.
Digital Banking Market Scope
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Attribute
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Details
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Market Size in 2019
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USD 8,892.4 Billion
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Market Size in 2027
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USD 14,789.4 Billion
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CAGR (%)
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6.6% from 2020 to 2027
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Historic Period
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2017 - 2018
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Base Year
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2019 |
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Forecast Period
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2020-2027
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Segments Covered
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Type, Services, Region |
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Regional Scope
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North America, Europe, Asia Pacific, Latin America, Middle East
& Africa
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Digital Banking Market Segmentation
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