Digital Banking Market Size By Service (Transactional [Cash Deposits & Withdrawals, Fund Transfers, Auto-Debit/Auto-Credit Services, Loans], Non-Transactional [Information Security, Risk Management, Financial Planning, Stock Advisory]) and region (North America, Europe, Asia-Pacific, Middle East and Africa and South America).
The global Digital Banking Market size was estimated at USD 8341.2 Billion in 2023 and is projected to reach USD 11374.2 billion in 2030 at a CAGR of 4.1% during the forecast period 2023-2030.
The surge in the number of individuals utilizing the internet and the shift from conventional banking to online banking are the primary catalysts behind the expansion of the market. Additionally, the rise in the adoption of cloud-based platforms for attaining enhanced scalability further propels the market's growth. Nevertheless, the existence of security and compliance concerns within the digital lending platform poses obstacles to the expansion of the digital banking platform market. Moreover, the proliferation of machine learning and artificial intelligence within the digital banking platform, coupled with the increase in innovative banking services and the rise in corporate investors, is anticipated to present profitable opportunities for the market.
The retail banking sector is anticipated to experience the most substantial growth rate and is projected to possess a considerable market share throughout the anticipated period. This can be attributed to the considerable upsurge in the desire for digital banking platforms among individuals, as well as the increased investment by small and medium-sized enterprises in the nation's digital banking platform.
The occurrence of the COVID-19 pandemic has resulted in an increased utilization of banking elements as a consequence of the implementation of remote working and social distancing measures, which have facilitated the significant expansion of digital banking's customer base. Within North America, a notable 35% of individuals are presently employing online banking services to a greater extent than they were prior to the advent of the coronavirus. However, it is worth noting that individuals who exclusively utilize digital banking methods exhibit considerably lower levels of overall satisfaction when compared to their counterparts who rely on traditional branch-based banking services. Additionally, it is pertinent to mention that approximately 20% of the European banking sector consists of small and medium-sized banks, which are subject to direct oversight by their respective national authorities.
The digital banking system is gaining significant traction as it enables various banking transactions, such as fund transfers, loan payments, EMI payments, cash deposits and withdrawals, through the internet. This system ensures swift monetary transactions without the need to physically visit a bank, which is a key driver of the global market's revenue growth. Furthermore, the demand for digital banking is further boosted by the numerous benefits it offers, including internet banking, SMS banking, ATMs, mobile banking, e-cheques, and debit/credit cards. The adoption of online and mobile banking platforms, as well as the emergence of open banking and cloud-based platforms, are also contributing factors to the market's revenue growth.
The banking sector has experienced rapid modernization following the advent of Information Technology (IT) and the internet, benefiting both customers and banks alike. Banking services are no longer restricted to physical branches but have expanded to include handheld devices such as smartphones and tablets.
North America to Dominate the Market