Digital Banking Market Overview
Digital Banking Market Size was estimated at USD 98.6 billion in 2023. The Digital Banking Industry is projected to grow from USD 107.67 billion in 2024 to USD 199.38 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.01% during the forecast period (2024 - 2032).
The growing need for safety and rising cloud-based solutions for essential and applicable data-driven decision-making are the key market drivers contributing to the market’s growth and expansion.
Figure 1: Digital Banking Market Size, 2024-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Digital Banking Market Trends
The growing need for safety and rising cloud-based solutions is driving market growth.
Market CAGR for digital banking is driven by the rising need for safety and increasing cloud-based solutions. The COVID scenario necessitates a high demand for digital services. Current regulations are likely to reduce the profits of various firms due to lockout or closure. These lockdowns have resulted in losses for important participants in the digital banking business. Various government initiatives and their fair judgments contribute to expanding the digital banking business. Following the recovery from COVID, several digital banking industry important businesses implemented new remote working rules, which aided in prohibiting the distribution of COVID-19 at various workplaces.
Additionally, throughout the market projection period, the Department of information technology, which serves many sectors internationally and regionally, will be heavily relied upon. Organizations have merged well-virtualized systems and spent much on marketplace infrastructure. A combined approach has gained market share in the digital banking sector. Banks may transition to digital ecosystems by implementing easily deployable and customized techniques for digital banking infrastructures. By improving customer service, engaging mobile banking apps and websites serve to increase client loyalty. Increasing phone demand is predicted to boost the number of digital banking users, resulting in a greater requirement for digital banking platform options shortly.
The emergence of the COVID-19 pandemic has increased online banking activity, driving both individual consumers and corporations who had previously rejected Internet banking to adopt digital banking as a standard practice. Aside from that, increased demand for electronic products such as mobile phones, laptops, and Computers is mostly due to technology improvements and customer preferences in established and developing economies. In today's world, customers routinely utilize gadgets to access a wide range of digital services. Many customers now manage their financial accounts using smartphone applications or mobile browsers. The epidemic compelled individual customers and organizations who previously opposed Internet banking to embrace digital banking applications as their new norm. The epidemic boosted consumer convenience, which may raise the need in the long term.
For instance, Visa recently made a USD 5.3 billion purchase of Plaid, a fintech firm that enables applications to quickly and immediately connect with users' bank accounts. Technological advancements have raised the need for cloud services in the electronic banking industry. Thus, it is anticipated that demand for Digital Banking will increase throughout the projection period due to the rising need for safety and growing cloud-based solutions. Thus, driving the Digital Banking market revenue.
Digital Banking Market Segment Insights
Digital Banking Services Insights
The Digital Banking market segmentation, based on Services, includes Non-Transactional Activities and Transactional. The transactional segment dominated the market, accounting for 71% of market revenue (USD 26.2 Billion) in 2022, as there is an increase in the necessity of digital adoption of transactions that can be done online through bank accounts.
Figure 2: Digital Banking Market, by Services, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Digital Banking Deployment Type Insights
The Digital Banking market segmentation, based on Deployment Type, includes On-Premises and On Cloud. The on cloud category generated the highest market revenue of about 57% (USD 51.47 billion) in 2022. Some technological innovations in the online banking business include an increase in the need for security and the spread of Technology based on the cloud and related services.
Digital Banking Technology Insights
The Digital Banking market segmentation, based on Technology, includes Internet Banking, Digital Payments, and Mobile Banking. The internet banking segment dominated the market, accounting for 47% of market revenue (USD 42.4 Billion) in 2022. With changing customer behavior and expectations, growing rivals, and breakthrough technologies, the digital age has disrupted the marketplace and use of Internet banking. Mobile Banking is expected to grow significantly during the projected timeframe, boosting the overall market growth.
Digital Banking Industries Insights
The Digital Banking market segmentation, based on Industries, includes Media & Entertainment, Manufacturing, Retail, Banking, and Healthcare. The banking segment dominated the market, accounting for 56% of market revenue (USD 50.6 Billion) in 2022. Digital banking has improved every aspect of the economic ecosystem, particularly banks, by allowing users to utilize banking goods and services through an electronic/online interface.
Digital Banking Regional Insights
By region, the research provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Digital Banking market will dominate during the projected timeframe, owing to an increase in many essential actors, boosting the market growth in the North American region.
Further, the major countries studied in the market report are the US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: Digital Banking Market Share by Region 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe region’s Digital Banking market accounts for the second-largest market share because of the expansion of digital banking possibilities. Further, the German Digital Banking market holds the largest market share, and the UK Digital Banking market is expected to grow and expand significantly in the European region during the projected timeframe.
The Asia-Pacific Digital Banking Market is expected to grow quickly during the projected timeframe. This is because of technological adaptation, particularly in developing countries which will boost overall market growth. Moreover, China’s Digital Banking market dominates the market share, and the Indian Digital Banking market is expected to expand and grow steadily in the Asia-Pacific region during the projected timeframe.
Digital Banking Key Market Players & Competitive Insights
Leading market players invested heavily in research and Development (R&D) to scale up their manufacturing units and develop technologically advanced solutions, which will help the Digital Banking market grow worldwide. Market participants are also undertaking various organic or inorganic strategic approaches to strengthen and expand their footprint, with significant market developments including new product portfolios, contractual deals, mergers and acquisitions, capital expenditure, higher investments, and strategic alliances with other organizations. Businesses are also coming up with marketing strategies such as digital marketing, social media influencing, and content marketing to increase their scope of profit earnings. The Digital Banking industry must offer cost-effective and sustainable options to survive in a highly fragmented and dynamic market climate.
Manufacturing locally to minimize operational expenses and offer aftermarket services to customers is one of the critical business strategies organizations use in the Digital Banking industry to benefit customers and capture untapped market share and revenue. The Digital Banking industry has recently offered significant advantages to the banking and technology industry. Moreover, more industry participants are utilizing and adopting cutting-edge Technology has grown substantially. Major players in the Digital Banking market, including SAP, Misys, Q2, Kony, Infosys, Urban FT, Backbase, and Technisys, are attempting to expand market share and demand by investing in R&D operations to produce sustainable and affordable solutions.
Oracle Corp. provides solutions and services covering every business IT environment area. Lawrence j. Ellison, Robert N. Miner, and Edward A. Oates started the corporation on June 16, 1977, and it is located in Redwood City, California. It operates in three divisions: cloud and licensing, hardware, and services. Oracle introduced Banking Cloud Services in February 2023, a set of six solutions to help banks modernize their product lines. Banks can mix and use the offerings separately or incorporate them into their infrastructure.
Wells Fargo is a worldwide financial services corporation based in San Francisco, California. Henry Wells & William G. Fargo founded the initial corporation. It is a significant financial services and banking corporation in the United States that was previously active in express transportation. The corporation is present in thirty-five nations and services more than 70 million clients ly. It offers investment, banking, loan services & goods, retail & commercial financing through over 7,200 spots, 13,000 ATMs, a website, and smartphone and tablet banking, to assist customers doing business in the economy. Wells Fargo launched a one-stop online banking facility for its business lending and commercial finance clients in December 2022. With this launch, the business hopes to use machine learning and artificial intelligence to offer organizations customized business and industrial banking services according to their specific requirements.
Key Companies in the Digital Banking market include
Digital Banking Industry Developments
February 2023: Oracle introduced Banking Cloud Services in February 2023, a set of six solutions to help banks modernize their product lines. Banks can mix and use the offerings separately or incorporate them into their infrastructure.
December 2022: Wells Fargo launched a one-stop online banking facility for its business lending and commercial finance clients in December 2022. With this launch, the business hopes to use machine learning and artificial intelligence to offer organizations customized business and industrial banking services according to their specific requirements.
July 2022:Revolut announced that it would shortly be making its app available for simpler usage in Sri Lanka, Azerbaijan, Chile, Ecuador, and Oman in 2022. This will allow users to transfer money to over 50 nations in over 30 denominations. Users who send funds to other Revolut members will not be paid a fee; however, transfers to non-Revolut wallets will incur a 1% fee.
Digital Banking Market Segmentation
Digital Banking Services Outlook
Digital Banking Deployment Type Outlook
Digital Banking Deployment Technology Outlook
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Internet Banking
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Digital Payments
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Mobile Banking
Digital Banking Deployment Industries Outlook
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Media & Entertainment
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Manufacturing
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Retail
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Banking
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Healthcare
Digital Banking Regional Outlook
- North America
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
- Rest of the World
- Middle East
- Africa
- Latin America
| Report Attribute/Metric |
Details |
| Market Size 2023 |
USD 98.6 Billion |
| Market Size 2024 |
USD 107.67 Billion |
| Market Size 2032 |
USD 199.38 Billion |
| Compound Annual Growth Rate (CAGR) |
8.01% (2024-2032) |
| Base Year |
2023 |
| Market Forecast Period |
2024-2032 |
| Historical Data |
2018- 2022 |
| Market Forecast Units |
Value (USD Billion) |
| Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Services, Deployment Type, Technology, Industries, and Region |
| Geographies Covered |
North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered |
The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled |
SAP, Misys, Q2, Kony, Infosys, Urban FT, Backbase, and Technisys |
| Key Market Opportunities |
Higher infrastructure investment |
| Key Market Dynamics |
Growing need for safety and rising cloud-based solutions for essential and applicable data-driven decision making |
Frequently Asked Questions (FAQ) :
The Digital Banking market size was valued at USD 98.6 Billion in 2023.
The market is projected to grow at a CAGR of 8.01% during the forecast period, 2024-2032.
North America had the largest share of the market
The key players in the market are SAP, Misys, Q2, Kony, Infosys, Urban FT, Backbase, and Technisys.
The Transactional category dominated the market in 2023.
The On Cloud had the largest share in the market.
