The global digital banking platforms market is expected to reach USD 10.16 billion in 2024 and USD 17.36 billion by 2029, growing at a CAGR of 11.3% during the forecast period.
The Digital Banking Platform provides financial services only online, where banking services are delivered over the Internet. The digital banking platforms are based on process automation, web-based services, and APIs to form fully digital banking services. Additionally, digital banking platforms encourage cross-institutional services by connecting their services with other financial providers to offer customers complete digital banking services. However, the core digital banking platforms are the customer and the user experience. In the fast and digital world, digital banking platforms allow customers to potentially manage all of their finances with the help of their smartphones and other online channels, which include payments, investments, spending analytics, etc. The digital banking platforms offer features and capabilities to customers and businesses, including checking & saving accounts, competitive interest rates compared with traditional banking, digital wallets, mobile apps, real-time transaction alerts, virtual cards & cardless payments, person-to-person payments, remote deposits, competitive FX rates or even zero rates, etc.
The digital banking platform is gaining popularity due to growing demand among banks for enhanced customer experience and increasing adoption of cloud-based solutions by financial institutions. Owing to the above features, the demand for digital banking is increasing, which further boosts the growth of the digital banking platform market.
Banking systems are becoming focused on adopting customer retention policies and attracting new customers by effectively communicating with them. A digital banking platform works as a channel that has capabilities that help banks facilitate personalized conversations across various channels, including voice, web, and mobile. It also offers banks the opportunity to engage with their customers at all touch points. Thus, banking and financial institutions are deploying digital banking platforms.
The growing use of online banking operation by customers and businesses is driving the demand of the digital banking platform. Financial institutions are adopting this platform in order to get connect to customer, faster and digital way which is utmost important to them, thus these institutions are adopting digital banking platform which drives the market growth.
Also digital banking platform helps banks in the saving on the costs incurred on procuring expensive legacy software and hardware and keep the system s up to date and also help banks to obtaining a 360 degree view of customers and ensuring better customer experience at a lower costs diving the growth of the market in the near future.
The significant investments by private/public holders are likely to develop sophisticated advanced and web-based service enterprises banking applications, custom-building banking services and mobile-friendly banking platform are some opportunities that drives the growth of the digital banking platform market.
The lack of digital literacy in emerging countries around the globe hinders the wide-scale adoption of online and mobile payment, which in turn restricts the growth of the Digital Banking Platform Market. Most of the countries on the African continent have low digital literacy rates, which leads to a lower number of digital transactions. Therefore, vendors in these regions are also hesitant to make investments, hence restricting market growth. With the increasing number of IoT enabled systems, the number of security and privacy issues has also arises such as brute force attack, distributed attacks, and social phishing etc is another factors that hampers the growth of the market.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2029 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2029 |
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CAGR |
11.3% |
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Segments Covered |
By Component, Deployment Model, Banking Type, Banking Mode, and Region |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
Alkami (US), Apiture (US), Appway (Switzerland), Backbase (Netherlands), BNY Mellon (US), CR2 (Ireland), EdgeVerve (India), ebankIT (England), Finastra (UK), Fiserv (US) and Others. |
The global digital banking platform market is segmented into platform and services based on component. The platform segment is estimated to dominate the market during the forecast period as it provides digitized banking operations, facilitates digital customer interactions, and allows banks to offer a host of digital financial products.
On the basis of banking type, the global digital banking platform market is segmented into Retail Banking, Corporate Banking, and Investment Banking. The Retail banking segment is expected to dominate the digital banking platform market over the forecast period. Retail banking has emerged as an important segment that requires a digital banking platform in order to translate banking models across the globe. The digital revolution has significantly impacted the marketplace with the changing behavior and expectations, innovative technologies, and high competition and entry of new competitors. Financial institutions are changing their operating process with the increasing number of channels and financial institutions in order to provide customers with premium services and improve their account segment.
On the basis of banking mode, the global digital banking platform market is segmented into Online Banking and Mobile Banking. Online banking is dominating the market because of the high adoption rate and ease of doing transactions anytime. However, the mobile banking segment will boost the market growth over the forecast period due to the increasing demand for e-transactions by mobile, which is fueling the market's growth. The young crowd is making high use of mobile banking in its day to day life.
The global digital banking platform market is segmented into on-premises and cloud based on banking mode. Cloud deployment mode is anticipated to lead to market growth. Cloud-based digital banking allows banks to improve customer insights, increase profits, expand their service portfolio, test their products, and deliver relevant and diverse offerings. Financial firms can gain a higher level of data protection, fault tolerance, and disaster recovery.
North America has accounted for the largest market share of the digital banking platform market and is estimated to sustain its position in the coming years. The United States is dominating the region due to the high rate of adoption of new technologies. The growing popularity of mobile-based banking applications and increasing digitization across the BFSI sector are some of the key contributing factors that significantly contribute to the growth of the digital banking platform market. Mexico in the North American region is estimated to have a 359.7 million dollar market in 2027.
Asia-Pacific region is estimated to witness the highest CAGR during the forecast period. Asia-Pacific digital banking platform is estimated to have strong growth in the future due to the constant rise in technologies; there is also significant growth in the volume of the services. The adoption rate of digital technologies is also high in this region, particularly in emerging economies such as Singapore, Australia, India, China, and Japan, which has made Asia-Pacific a profitable market in the IT industry. In this region, strong banking capabilities, such as digital offerings, strong financial positions, and digital structures, are some of the factors that are expected to propel the digital banking platform market growth. The major players in this region are going to benefit from the flexible financial conditions, industrialization, the globalization-motivated policies of the government, and the expanding digitization in the region. The entire above factor is responsible for the growth of the digital banking platform market during the projected period.
In the European region, Germany is dominating the European digital banking platform market due to its strong banking industry presence.
Some of the leading companies operating in the Global Digital Banking Platforms Market are:
By Component
By Banking Type
By Banking Mode
By Deployment Mode
By Region
Frequently Asked Questions
The primary drivers include the growing demand for convenient and accessible banking services, the proliferation of smartphones, advancements in AI and machine learning, and increased regulatory support for digital banking. Additionally, the COVID-19 pandemic accelerated the shift towards digital channels, further propelling market growth.
Features in high demand include mobile banking apps, AI-driven chatbots for customer service, personalized financial advice, seamless integration with other financial services, robust security features, and real-time transaction monitoring. Additionally, features that enhance user experience, such as intuitive interfaces and easy navigation, are also highly sought after.
AI is being utilized in digital banking platforms for various applications such as fraud detection, customer service automation through chatbots, personalized financial recommendations, predictive analytics, and risk management. AI enhances operational efficiency, improves customer experience, and provides deeper insights into customer behavior.
Customer experience is crucial for the success of digital banking platforms. A user-friendly interface, quick and secure transactions, responsive customer support, and personalized services significantly enhance customer satisfaction and loyalty. Banks that prioritize exceptional customer experiences are more likely to retain customers and attract new ones in the competitive digital landscape.
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