Digital Banking Market Outlook 2031
The Digital Banking Market was USD 25.06 Billion in 2022 and is likely to reach USD 134.23 Billion by 2031, expanding at a CAGR of 20.5% during 2023 – 2031. Digital banking refers to the mechanization of banking transitions and other financial services. Users can avail the financial services offered by banks using an online platform and carry out all their activities digitally, avoiding hassle.
Digitization of activities has resulted in constant availability of banking operations, thereby substituting the bank’s physical presence. The development of digital banking as a service to the bank’s customers has revolutionized the banking and finance industry. This development has resulted in the integration of digital finance such that the daily transactions can be carried out electronically between banks.
Digital Banking Market Trends, Drivers, Restraints, and Opportunities
- Cost efficiency and the elimination of requirement for physical hardware is primarily driving the market.
- Increased utilization of smartphones has prompted users to carry out their day-to-day financial activities through the Internet, which further propels the market growth.
- Rising penetration of Internet in rural areas and rising global industrialization result have increased number of online banking transactions, which is spurring the market growth.
- High risk of security on online banking platforms and data breaches can hamper the market growth.
- Growing influence of social media that encourages people to engage in online shopping and the use of digital banking for payments is estimated to offer lucrative opportunities for the market development.
- Various government initiatives toward promoting cashless transactions and incentives offered on digital banking platforms have resulted in the growth of the market.
Scope of Digital Banking Market report
The report on the global digital banking market includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.
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Attributes
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Details
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Report Title
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Digital Banking Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016 & 2021
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Forecast Period
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2023–2031
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Segmentation
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Types (Corporate Banking, Retail Banking, and Investment Banking), Services (Transactional [Loans, Fund Transfers, Auto-debit/Auto-credit Services, and Cash Deposits & Withdrawals] and Non-transactional [Stock Advisory, Information Security, Financial Planning, and Risk Management])
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Regional Scope
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Asia Pacific, North America, Europe, Latin America, and Middle East & Africa
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Report Coverage
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Market scope, analysis, share, competitive analysis, growth facts, restraints, opportunities, and revenue forecast
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Digital Banking Market Segment Insights
Increasing profit margins drive the corporate banking segment
Based on types, the digital market can be segmented into corporate banking, retail banking, and investment banking. The corporate banking segment is projected to generate significant revenue during the forecast period owing to increasing investments and financial operations carried out by large scale organizations and corporations.
Corporate banking is a separate branch of banking that involves financial services offered by banking institutions to business enterprises. Digital banking services provided to corporations generate significant revenue for the digital banking market due to the convenience of cashless transactions. The retail banking segment is expected to grow at a robust growth owing to the increasing use of online payment options by consumers, in their usual transactions. Digitization of services has influenced retailers to offer cashless transactions to their customers through online payment portals such as QR codes and payment applications.
High convenience and efficiency has resulted in robust growth of the transactional segment
On the basis of services, the market can be bifurcated into transactional and non-transactional services. The transactional services segment can further be classified as loans, fund transfers, auto-debit/credit-credit services, and cash deposits & withdrawals. Whereas, the non-transactional services segment can be categorized as stock advisory, information security, financial planning, and risk management.
The transactional segment registered a major market share in 2020 and is expected to gain momentum during the forecast period. Transactional services facilitate cashless transfer of funds from one party to another through an online platform. Transactions such as cash deposits, fund transfers, and loans can be carried out using the banking services offered by the aid of the Internet.
The easier facilitation of cash withdrawals and deposits through digital banking platforms aided by enhanced security also influences the market growth. The non-transactional segment is estimated to expand at a robust growth rate owing to the rise of information security services. Information security helps in the protection of sensitive information that has been stored on various deployment modes such as the cloud technology.
Increasing use of smartphones and the era of digitization to influence the market in Asia Pacific
In terms of regions, the global digital banking market can be split into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Asia Pacific is projected to generate a robust revenue for the market owing to rising prevalence of banking technology and the adoption of smartphones in urban areas.
Technological developments in developing countries such as India, China, and Japan is anticipated to positively influence the digital banking market. Government support toward facilitation of cashless transactions and increasing investments towards banking is also propelling the market growth in the region. Moreover, collaborations between traditional banking institutions and financial technology players has resulted in developments in digital banking that adheres to consumer preference and user interface.
Segments
By Types
- Corporate Banking
- Retail Banking
- Investment Banking
By Services
- Transactional
- Loans
- Fund Transfers
- Auto-debit/Auto-credit Services
- Cash Deposits & Withdrawals
- Non-transactional
- Stock Advisory
- Information Security
- Financial Planning
- Risk Management
By Regions
- North America
- Europe
- Latin America
- Asia Pacific
- Middle East & Africa
By Key Players
- Oracle Corporation
- Fidor Solutions AG
- Appway AG
- Bank of New York Mellon Corporation
- CREALOGIX AG
- Etronika
- Finastra
- Halcom.com
- ieDigital
- Infosys Limited
- Intellect Design Arena Limited
- Kony
- NETinfo Plc
- Technisys S.A.
- NF Innova
- SAP SE
- Sopra Steria
- Tata Consultancy Services Limited
- Temenos AG
- SAB
- Worldline
Competitive Landscape
Key players in the global digital banking market include Oracle Corporation; Fidor Solutions AG; Appway AG; Bank of New York Mellon Corporation; CREALOGIX AG; Etronika; Finastra; Halcom.com; ieDigital; Infosys Limited; Intellect Design Arena Limited; Kony; NETinfo Plc; Technisys S.A.; NF Innova; SAP SE; Sopra Steria; Tata Consultancy Services Limited; Temenos AG; SAB; and Worldline. These players engage in mergers & acquisitions, collaborations, agreements, and partnerships to strengthen their geographical presence.
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