Mobile Banking Market Size, Share & Growth | Forecast [2031]

Report Description

The global mobile banking market was USD 1.13 billion in 2022 and is likely to reach USD 3.19 billion by 2031, expanding at a CAGR of 12.2% during 2023 – 2031. The growth of the market is attributed to the increasing adoption of mobile banking service owing to the user-friendly interface and convenience.

Mobile banking is a service offered by bank or financial institutions to provide financial transactions remotely with the help of mobile devices such as smartphone and tablet. It provides software application to offer mobile banking service. The participants of mobile banking system include telecom operators, financial institutions, money transfer agents and regulators, platform providers of mobile money, and payment processors.

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The banking service assists in easy recording and analysis of financial transactions made by consumers or users. However, such banking service has to completely rely on the availability of the Internet on the mobile device.

In general, users have to download the banking application on their devices and submit their banking details using the application. Using the app on devices, customers can easily access to several services such as transfer funds to different third-party accounts, obtain information about the account transaction history at the instant, and check account balance.

Mobile banking eliminates the cost of handling transactions, reducing the requirement for customers to visit a bank for non-cash withdrawal and deposit transactions. Mobile banking does not handle transactions that involves cash. Several apps now provide remote deposit option, in which a customer can deposit the check to their financial institution in digital form by using device camera.

Some apps also allow copies of statements to get downloaded on the mobile device. A mobile banking app improves the flexibility, speed, ease of use, and security of financial transaction, as it integrates with the user in-built mobile device security mechanisms.

Market Trends, Drivers, Restraints, and Opportunities

• Increasing adoption of smartphone devices for accessing banking is projected to fuel the market growth during the forecast period.

• Ongoing technological developments in the banking industry to provide personalized customer service can boost the growth of market.

• Lack of appropriate connectivity and unavailability of robust network infrastructure in developing countries present major challenges that can restrain the market growth.

• Mobile applications are offering streamlined customer experience while reducing the chance of financial fraud by integrating advanced technology. This is expected to fuel the market expansion.

• Wide adoption of technology such as chatbots, wireless application protocol, and block chain to increase the efficiency of financial transaction process or services are anticipated to create lucrative opportunities for the market expansion during the forecast period.

Scope of the Mobile Banking Market Report

The report on the global mobile banking market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Global Mobile Banking Market Segment Insights

Consumer-to-business segment is expected to account for a large share

Based on transactions, the global mobile banking market is bifurcated into consumer-to-consumer and consumer-to-business. The consumer-to-business segment is expected to account for a large share of the market in the coming years owing to the rising awareness of the banking service among consumers and rising preference for easy payment services.

Moreover, the increasing use of online payment methods due to rapid establishment of e-commerce platforms as well as digital transformation of various financial services present major factors boosting the segment growth.

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Android segment is projected to exhibit a robust CAGR

Based on platforms, the market is divided into Android, iOS, and others. The Android segment is projected to exhibit a robust CAGR during the forecast period owing to the rising number of Android-based smartphones.

Availability of low-cost phone and existing wide number of smartphone manufacturing companies in this platform are major drivers that help boost the segment growth. However, the iOS segment is expected to constitute a major market share in the coming years due to increasing use of iPhone and rapid introduction of new technology in the variant.

Asia Pacific is anticipated to hold a major share

In terms of regions, the global mobile banking market is categorized into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is anticipated to hold a major share during the forecast period owing to rising establishment of manufacturing units in the region and favorable regulations from government bodies pertaining to the manufacturing consumer electronic items.

On the other hand, the market in Middle East & Africa is anticipated to expand at a significant rate owing to rising demand for the mobile service due to lack of proper or full-fledged banking services in the region. Presence of under-served or under-banked population in the region acts another key driving factor for the regional market expansion.

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