Digital Banking Market Size By Type (Retail Banking, Corporate Banking, Investment Banking), By Service (Transactional Services, Non-Transactional Services), & By Geographic Scope and Forecast

Digital Banking Market Size And Forecast

Digital Banking Market size is valued at USD 9833.57 Million in 2024 and is anticipated to reach USD 23643.58 Million by 2031, growing at a CAGR of 11.59% from 2024 to 2031.

• Digital Banking is a type of online banking, where people use banking services with the help of the internet.
• Digital Banking enables the user to utilize all types of banking products and services over the Internet. It is a user-friendly technology that saves time and enables you to take the benefits of banking services all over the region.
• This technology reduces the constant need to visit banks. Digital Banking provides every financial service in their banking applications, people can use these applications through their laptops, taps, mobile phones, etc.
• There are many benefits of using Digital Banking such as time-saving, efficiency, security, and accuracy. New technological development has made this Digital Banking more secure and user-friendly like by using their id and password people can access their bank account anywhere.

Digital Banking Market Dynamics

The key market dynamics that are shaping the global digital banking market include

Key Market Drivers

• Rapid Technological AdvancementsContinuous advancements in digital technology, including mobile banking apps, artificial intelligence (AI), blockchain, and biometric authentication, are driving the evolution of digital banking services, enhancing convenience, accessibility, and security for consumers.
• Changing Consumer BehaviorIncreasing consumer preference for digital channels, fueled by the convenience of anytime, anywhere banking, is driving the adoption of digital banking services, including online account management, mobile payments, and digital wallets.
• Cost Efficiency for BanksDigital banking offers cost-saving opportunities for financial institutions through reduced overhead costs associated with physical branches, tellers, and paper-based transactions, driving the adoption of digital-first strategies among banks.
• Regulatory Support and ComplianceRegulatory initiatives promoting open banking, data security, and consumer protection are driving innovation and competition in the digital banking market, fostering collaboration between banks, fintech firms, and regulatory authorities.
• Market Competition and DisruptionThe emergence of fintech startups, digital-only banks, and tech giants entering the financial services sector is intensifying competition and driving innovation in digital banking, leading to enhanced customer experiences, product offerings, and pricing models.

Key Challenges

• Cybersecurity RisksThe increasing frequency and sophistication of cyber threats, including data breaches, phishing attacks, and malware, pose significant challenges to the security and integrity of digital banking systems, requiring robust cybersecurity measures and investments.
• Digital DivideSocioeconomic factors such as income levels, education, and access to technology contribute to a digital divide, limiting the adoption of digital banking services among certain demographic groups, including the elderly, rural populations, and individuals with limited internet access.
• Data Privacy ConcernsGrowing concerns over data privacy, consent, and unauthorized use of personal information by banks and third-party providers pose challenges to the adoption of digital banking services, requiring transparent data governance practices and compliance with privacy regulations.
• Legacy Systems IntegrationThe integration of digital banking systems with legacy infrastructure and core banking platforms poses technical challenges for traditional banks, requiring complex IT modernization efforts and investments to deliver seamless omnichannel experiences.
• Regulatory Compliance ComplexityCompliance with evolving regulatory requirements, including anti-money laundering (AML), know your customer (KYC), and data protection regulations, adds complexity and operational costs to digital banking operations, requiring ongoing compliance monitoring and risk management.

Key Trends

• Personalized Banking ExperiencesThe adoption of AI and big data analytics enables banks to deliver personalized banking experiences tailored to individual preferences, behaviors, and financial goals, driving customer engagement and loyalty.
• Expansion of Open Banking EcosystemsOpen banking initiatives and application programming interfaces (APIs) enable banks to collaborate with third-party developers and fintech firms to offer innovative products and services, fostering ecosystem growth and customer value propositions.
• Contactless Payments and Digital WalletsThe proliferation of contactless payment technologies, including near-field communication (NFC) and mobile wallets, is driving the shift towards cashless transactions and digital payments, enhancing convenience and security for consumers.
• Embedded Finance and Platform BankingIntegration of financial services into non-financial platforms, such as e-commerce, ride-sharing, and social media platforms, enables banks to reach customers in their everyday digital interactions, creating new revenue streams and customer touchpoints.
• Focus on Financial InclusionInitiatives to promote financial inclusion, such as digital literacy programs, low-cost banking services, and mobile-based financial solutions, are driving efforts to reach underserved populations and expand access to banking services globally.

Digital Banking Market Regional Analysis

Here is a more detailed regional analysis of the global digital banking market

Asia Pacific

• Asia Pacific is experiencing rapid digitalization, driven by increasing internet penetration, smartphone adoption, and tech-savvy demographics. This trend is fueling the demand for digital banking services across the region.
• With a significant portion of the population accessing the internet primarily through smartphones, digital banking in Asia Pacific often adopts a mobile-first approach, offering convenient and user-friendly mobile banking apps and services.
• Fintech InnovationAsia Pacific is a hotbed for fintech innovation, with numerous startups and tech companies disrupting the traditional banking landscape. These fintech firms are driving the development of innovative digital banking solutions, including mobile payments, digital wallets, and peer-to-peer lending platforms.

North America

• North America has a highly tech-savvy population with widespread access to high-speed internet and smartphones. This tech-savvy demographic drives the adoption of digital banking services, leading to a strong digital banking market in the region.
• The digital banking market in North America is highly competitive, with traditional banks, fintech startups, and tech giants vying for market share. This competition drives innovation and the development of new digital banking solutions and features.
• North America has a well-established regulatory framework governing the financial services industry. Regulatory compliance is a key consideration for digital banking providers, influencing the development and rollout of digital banking services and features.

Digital Banking MarketSegmentation Analysis

The Global Digital Banking Market is segmented on the basis of Type, Service, And Geography

Digital Banking Market, By Type

• Retail Banking
• Corporate Banking
• Investment Banking

Based on Type, the market is segmented into Retail Banking, Corporate Banking, and Investment Banking. Investment Banking dominated the market in 2022 and is expected to account for USD 8,812.23 Million by 2030 as it has high earning potential. It also offers valuable benefit packages. It provides financial assistance on a variety of complex financial issues. Investment bankers assist their clients in saving time on new project financial management. Thus, the demand for Investment Banking services is growing amongst customers around the world.

Digital Banking Market, By Service

• Transactional Services
• Non-Transactional Services

Based on Service, the market is segmented into Transactional Services and Non-Transactional Services. Transactional Services accounted for the largest market share in 2022 and are expected to account for the highest share by 2030. This is due to the increasing prevalence of the internet and the increased usage of cell phones. The market is divided into transactional and non-transactional services based on the service.

Digital Banking Market, By Geography

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• Latin America

Based on Regional Analysis, the Global Digital Banking Market is classified into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America is the dominant market shareholder for the Digital Banking Market in 2022 and over the forecast period. The digital payments revolution continues to lead the way in the Asia Pacific.

Key Players

The “Digital Banking Market” study report will provide valuable insight with an emphasis on the global market. The major players in the market are Appway AG (FNZ), Bank of New York Mellon Corp., Oracle Corp., ieDigital, Infosys Limited, Finastra, ebankIT, Finserv, Inc., SAP SE, and Temenso AG.

Our market analysis also entails a section solely dedicated for such major players wherein our analysts provide an insight to the financial statements of all the major players, along with its product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share and market ranking analysis of the above-mentioned players globally.

Digital Banking Market Recent Developments

• In February 2023, Oracle unveiled Banking Cloud Services, a collection of six services designed to assist banks in modernizing their offerings. Banks can combine and employ the services as separate capabilities or integrate them into their current infrastructure.
• In October 2022, BNY Mellon announced that its Digital Asset Custody technology is now operational in the United States. With select clients being able to keep and transfer bitcoin and ether, BNY Mellon’s commitment to meeting client demand for a trusted supplier of both traditional and digital asset servicing is reinforced.
• In December 2021, FNZ announced the acquisition of Appway, the market leader in customer onboarding and client services for financial institutions. FNZ gains considerable technological experience in enterprise-grade low-code no-code workflow automation, as well as deep domain understanding throughout the full wealth management value chain, as a result of this strategic purchase.
• In October 2021, Wing Bank (Cambodia) Plc used financial services tools from the Oracle Banking suite to help it convert into a fully licensed, digital-first commercial bank. Wing Bank will be able to increase its service offerings, including commercial, retail, consumer, and loans and deposits, as a result of the shift.

Report Scope

Research Methodology of Market Research

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Reasons to Purchase this Report

• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors• Provision of market value (USD Billion) data for each segment and sub-segment• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled• Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players• The current as well as the future market outlook of the industry with respect to recent developments which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions• Includes in-depth analysis of the market from various perspectives through Porter’s five forces analysis• Provides insight into the market through Value Chain• Market dynamics scenario, along with growth opportunities of the market in the years to come• 6-month post-sales analyst support

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