Digital Banking Market Research Report- Global Forecast to 2027

Digital Banking Market, by Services (Non-Transactional Activities, Transactional), By Deployment Type (On-Premises, On Cloud), By Technology (Internet Banking, Digital Payments, Mobile Banking), By Industries (Media & Entertainment, Manufacturing, Retail, Banking, Healthcare) - Forecast till 2027

ID: MRFR/ICT/1454-HCR | February 2021 | Region: Global | 110 Pages         

Digital Banking Market

Digital Banking Market Estimated to Reach at USD 30751 Million with 19.1% CAGR by 2027

Segmentation

By Services Non Transactional Activities Transactional
By Deployment Type On Premises On Cloud
By Technology Internet Banking Digital Payments Mobile Banking
By Industries Media & Entertainment Manufacturing Retail Banking Healthcare

Key Players

  • SAP
  • Misys
  • Q2
  • Kony
  • Infosys
  • Urban FT
  • Backbase
  • Technisys

Drivers

  • Essential and relevant data-based decision making
  • Increasing demand for security and rising cloud-based solution
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Digital Banking Market Overview


The digital banking market is expected to grow at a CAGR of 13% during the forecast period 2016 to 2022. Digital banking assists the banks and its clients in carrying out end-to-end processing of the transaction so done, the day-to-day operations, and other daily activities so carried out without any hindrance. The modern and latest technology permitted several parts of the daily banking systems and the proliferation of the modernized smart devices have permitted the state bankers to change their past banking system to the modern system.


Fast availability and the peak utility and low cost are some of the important factors put forward for digital banking in the modernized environment. The maximum number of banks are adapting to fulfill the requirements of the individuals by arranging services like ATM, internet banking, mobile banking, SMS banking, and many more. In the modernized society, it has been found that the high usage of these digital devices is outspread in the market where smart devices are in extremely large use. The digital banking industry is in high demand due to the essential and efficient data-based decision making which is put forward by various industries.


COVID 19 ANALYSIS


The outbreak of COVID has affected the world and digital banking as well. For the safety of the nation and to combat the negative effects of the countries, nationwide lockdown and shutdown were imposed. COVID put forward several challenges for the digital banking sector. The hit of the pandemic has affected the production and manufacturing unit. Here, the process is applicable to fulfill the needs of various industries. Due to the COVID, people are not as active as earlier. Some of the strategic developments taking place. MNC is investing more funds in the digital marketing industry due to the rise of digital banking market growth. During this pandemic, the government has imposed certain guidelines for the safety of the people.


MARKET DYNAMICS


Drivers


The major requirement for digital services is due to the COVID situation. Present requirements are expected to minimize various revenues of different companies which owe to lockdown or shutdown. These lockdowns have led to detachment of losses to the digital banking market key players.  Various policies of the government and their fair perceptions help stimulate the digital banking market growth. Recovery after COVID led to the adoption of new remote working policies by various digital banking market key players which helped in forbidding the allocation of COVID 19at different workplaces.


Opportunities


Depending highly on the IT department which supports various industries globally and regionally during the market forecast period. Organizations have combined well-virtualized environments and invested a huge sum in the infrastructure of the market. The market share of the digital banking market is an integrated solution. There are several developing markets in the region of Asia Pacific which is followed after by Latin America.


Challenges


As per the in-depth analysis Digital Banking Market report by MRFR, it has been marked that the market occupies a CAGR of 13% during the assessment period. The companies are planning and try to execute the operations through new and modernized techniques. Factors affecting the digital banking market size are the video enterprise, modernization of global technology, and digital banking market revenue investment.


Cumulative Growth


The craze for online market growth increases the demand during the digital banking market forecast period. It has been expected to grow at a high speed during the forecast period. The support of the government and the interest of customers are increasing the online market growth. This rising demand contributes to little and medium undertakings or in various digital companies where most of the efforts are very much needed.


Restraints


Lack of availability of easy options and increase in convenience for accessing several services the digital banking market growth is being hindered. There are no other alternate options for carrying out online banking and the increase in operational costs of digital services hampers the digital banking market size. Using different software devices instead of using online banking hinders growth. The large and increase in complexity of data patterns of online banking personnel hinder the digital banking market size.


MARKET SEGMENTATION


By Type


Based on division segment, digital banking market is categorized into primary deployment, modernized technology, services provided by the bank, and the latest online banking industry. Based on deployment the digital banking market is divided into on-cloud and on-premises. The prime services include transactional and non-transactional activities. Modern technology is classified into digital payments which include mobile banking and internet banking. Based on the needs of various industries, it includes major retail, primary banking, media, manufacturing units, and entertainment. Based on application, the digital banking unit comprises researchers, traders, importers, and exporters. This digital concept is applied by various other key players in different regions. This helps in enhancing popularity and awareness. Based on the service, it has been marked that the market digitally is divided into North America, Europe, and several other countries of Asia Pacific. With the growth for harmonizing the country as per the technology, innovations are being made. Corporate Banking is said to be the most important bank as per the large scale divisions. The growth in various segments contributes to the rise in demand for Laing with fewer complexities for managing the services of the bank. This bank also gives high liquidity management to digital banks which ensures primary convenience along with controlling different bank processes.


By Technology


The rise in demand for security, and expansion of cloud-based technology and its services are some of the technological inventions of the digital banking industry. The advancement of technology led to the invention of some of the digital banking market trends. Technological innovation fulfilled the need for illiteracy among the majority of old ages. It also fulfilled the internet infrastructure in different regions of the country.


REGIONAL ANALYSIS


North America is expected to be the largest and most dominant region due to the presence of key players in large numbers. The presence of key players makes this region compete with other regions of Canada and the United States. Europe is said to be the second-largest region due to the rise in digital banking market opportunities whereas the Asia Pacific region has developed and is expected to gain importance as compared to the regions of China and India. Advanced technology has made this region to be one of the developing regions.


COMPETITIVE LANDSCAPE


Some of the market players operating in the digital banking market are the North American region, the United States region, Canadian region, Mexican region, European region, some regions of Germany, the United Kingdom, France, Spain, Italian region, China, Asia Pacific region and the rest of European region. It also includes some regions of Japan, Africa, South America, and some of the Middle East region. These market players adopt various strategies to attain a dominant position.


RECENT DEVELOPMENTS



  • TCS in September 2021, developed the TCS BaNCS cloud which permits the servicing of assets of all classes. Their launching is targeting custodians, dealers, brokers, etc.

  • Finastra merged with Salt Edge to increase the speed of compliance along with Payments Service Directive 2 and other global banks.

  • Finastra in July 2020, made a partnership with Microsoft for speeding up the digital reformation of bank services. They give integrated solutions to businesses, customers that are comfortable with the needs and lives of the people.

  • NCR in partnership with Google Cloud in April 2021, did the expansion of cloud availability of the digital banking software where the NCR channels for banking and payment processing.


REPORT OVERVIEW


From the report, you can summarise the market scenario of digital banking market. It gives highlights about the COVID analysis along with the recent developments as per the new market trends taking place. It gives detailed information about the market segmentation and the market dynamics. It gives a good analysis of the factors that help in driving the market, the most challenging factors that affect the industry, cumulative growth taking place in the market, and the restraining factors that affect digital banking market revenue.



Report Scope:
Report Attribute/Metric Details
  Market Size   2027: Significant Value
  CAGR   13% (2019-2026)
  Base Year   2019
  Forecast Period   2020-2027
  Historical Data   2018
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Services, Deployment Type, Technology and Industries
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   
  Key Market Opportunities   leads to increased investments in the infrastructure
  Key Market Drivers

  • essential and relevant data-based decision making
  • increasing demand for security and rising cloud-based solution


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    Frequently Asked Questions (FAQ) :

    Increasing investments in financial inclusion and digitization by governments are projected to boost expansion of digital banking market.

    By 2026, the digital banking market is poised to mark 13% CAGR.

    Easy availability and low cost are some of the advantages of digital banking.

    On the basis of services, the segments of the digital banking market are non-transactional activities and transactional.

    The segments of the digital banking market, by technology, are internet banking, mobile banking, and digital payments.