Digital Banking Platforms Market worth $13.9 billion by 2026
According to a new market research report “Digital Banking Platforms Market: Global Forecast to 2026”, published by MarketsandMarketsTM, the size of the market is expected to grow USD 8.2 billion in 2021 to USD 13.9 billion by 2026, at a compound annual growth rate (CAGR) of 11.3% during the forecast period.
The digital banking platform market is gaining traction due to the increasing adoption of smartphones, which is contributing to its growth. Countries such as India, Indonesia, South Africa, and China have seen high growth in smartphone sales in the last few years. According to the GSM Association (GSMA) Mobile Economy 2020 report, there will be 7.1 billion smartphone connections by 2025, up from 5.2 billion in 2019. The adoption rate would increase from 65% to 80% by 2025.
The Banking segment is expected to grow at the highest CAGR during the forecast period Digital Banking Platforms
Among the banking type segment, corporate banking is expected to grow at the highest CAGR during the forecast period. Corporate banking solutions provide banks and corporations with a seamless, connected corporate banking experience and a 360° view of the business. This results in integrating payments, treasury, lending, trade, and supply chain finance, benefiting both customers and corporates. Several organizations are incorporating corporate suites that provide superior features to corporate banks.
The Banking segment is expected to grow at a higher CAGR during the forecast period
Mobile banking platforms offer an intuitive and secure mobile banking experience for retail and corporate banks. The platforms offer a responsive User Interface (UI) and support the bank customers’ entire banking journey, from onboarding to transactional banking requests, on their mobile devices. Banks are increasingly adopting the mobile banking platform due to changing customer preferences toward mobile banking across all segments. This helps drive the business growth of the mobile banking segment. This is substantiated by the 2018 Mobile Banking Study from Citi Bank. The study revealed that 46% of US consumers have increased their use of mobile banking in the past year. Furthermore, 91% preferred using apps over going to a branch, whereas 68% of millennials said they could see their smartphones replacing their physical wallets.
Asia Pacific (APAC) region to record the highest growth in the Digital Banking Platforms Market
The APAC countries have seen a rise in the number of fintech startups, which has led to disruptions in the digital banking platform ecosystem. However, to keep up with this rapid pace of advancement, traditional banking firms are undertaking digital transformation projects. There is a huge untapped market for the banking industry in India, China, Bangladesh, and several other countries in APAC; this has proven to be a driver for the growth of banking firms in the region. Hence, this motivates bankers to adopt strategies for the digitalization of their services. With the rise in the number of mobile device users, there is also an increasing use of digital banking technologies and online commerce. These factors, together, are expected to fuel the growth of the digital banking platform market in the region.
