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The digital banking platforms market size is forecast to increase by USD 25.58 billion, at a CAGR of 16.9% between 2023 and 2028. The market is experiencing significant growth due to the increasing use of smartphones, computers, and IoT devices for banking transactions. The convenience and accessibility offered by platforms have led to a rise in their adoption, particularly among younger generations. Additionally, the rise of artificial intelligence (AI) and machine learning technologies is enabling banks to offer more personalized services and improve customer experience. However, the market also faces challenges related to data privacy and security concerns, as well as the need for banks to adapt to evolving regulatory requirements. The implementation of blockchain as a service in banking, financial services, and insurance (BSFI) is another trend that is gaining traction, offering benefits such as increased security, transparency, and efficiency. Overall, the market is poised for continued growth as technology continues to transform the banking industry.
Digital banking platforms have revolutionized the financial industry, offering unprecedented convenience and accessibility to customers. These platforms enable banking services to be accessed via smartphones, computers, and IoT devices, making transactions faster and more efficient. The advent of these platforms has led to a significant shift from traditional banking methods. Banks are increasingly deploying automated platforms to enhance productivity and reduce costs, providing income prospects for the financial sector. Internet connectivity plays a pivotal role in the functioning. With the widespread availability of high-speed internet, banks can offer online banking services, mobile apps, and digital wallets, enabling customers to manage their finances from anywhere, at any time. Cloud computing and cloud storage have further boosted the adoption. Banks can store customer data securely in the cloud, ensuring easy accessibility and reducing the need for on-premise infrastructure. This not only reduces costs but also enhances the user experience. Artificial intelligence (AI) is another key technology driving the growth.
AI-powered chatbots and virtual assistants offer personalized services to customers, providing quick responses to queries and facilitating seamless transactions. Digital services offered include retail banking, inclusive banking, inter-account transfers, and telecommunication network bill payments. Fintech firms are also leveraging these platforms to offer innovative digital financial solutions. The deployment of platforms can be done through Software as a Service (SaaS) or on-premise models. SaaS offers the advantage of easy deployment and scalability, while on-premise models provide greater control and security. The use of digital banking platforms offers numerous benefits, including increased client loyalty, improved user experience, and cost savings. Banks can leverage these platforms to offer personalized services, streamline operations, and stay competitive in the digital age. In conclusion, digital banking platforms are transforming the financial industry by offering convenient, accessible, and efficient banking services. With the integration of IoT devices, AI, cloud computing, and other technologies, digital banking platforms are set to redefine the way we manage our finances.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The retail banking segment is estimated to witness significant growth during the forecast period. Digital banking platforms have increased in influence and become a preferred choice for retail customers due to their user experience. These platforms, which function as software solutions, enable transactions through smartphones, computers, and IoT devices with Internet connectivity. Retail banking customers appreciate the convenience of conducting financial transactions online, as it saves time.
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The retail banking segment was valued at USD 8.68 billion in 2018. Security is a crucial factor, and these platforms focus security measures to ensure user data is protected. A simple and quick login process, site availability, seamless integration of all services on the same platform, a clear and intuitive layout, and comprehensive information are attributes that retail users value. In summary, digital banking platforms have driven retail banking services into the future, offering a more efficient and convenient banking experience for customers.
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North America is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market in North America is poised for expansion due to the region's advanced consumer electronics market and high adoption of digital services. These platforms enable users to manage their finances, execute transactions, and monitor account activity in real-time. By integrating these apps with their digital banking platforms, these firms aim to enhance customer experience and foster client loyalty. The North American digital banking platforms market is expected to witness significant growth during the forecast period as technology continues to transform the financial services industry.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing use of digital payment solutions is notably driving market growth. Digital banking platforms are experiencing significant growth in the global banking sector. For instance, digital banking is projected to account for approximately 90% of total banking transactions in Canada by 2030. In response, numerous banking enterprises worldwide are introducing digital banking platforms to streamline daily operations and gain a competitive edge. For example, American Express Canada offers the American Express Payment platform, a digital banking solution, enabling businesses to replace physical cards with virtual account numbers for seamless payment and settlement of various corporate expenses.
The deployment of digital banking platforms, whether on-premise or Software-as-a-Service (SaaS), is crucial for inclusive banking and retail banking services. Telecommunication networks play a vital role in ensuring uninterrupted access to these platforms, making inter-account transfers and other digital banking services convenient and efficient. Thus, such factors are driving the growth of the market during the forecast period.
The rise of blockchain as a service in BSFI is the key trend in the market. Digital banking platforms have experienced significant growth due to the increasing usage of Online Payments and Remote Account Management. The technological infrastructure supporting these platforms is driven by high Internet Penetration Rates and the demand from Tech-Savvy Consumers. Blockchain as a Service (BaaS) is a prominent technology enabling the development of secure and efficient distributed ledger systems. Microsoft's Ethereum Blockchain as a Service (EBaaS) is a cloud-based solution that offers a developer environment for creating and managing blockchain applications.
This solution can be integrated with Microsoft Azure, a cloud computing platform, to build and manage distributed ledger technologies cost-effectively. IBM also provides cloud computing solutions for decentralized and distributed ledgers through the IBM Bluemix platform. These BaaS offerings cater to corporate and application software developers, offering a scalable and flexible platform for blockchain development. Thus, such trends will shape the growth of the market during the forecast period.
Issues related to data privacy and security is the major challenge that affects the growth of the market. Digital transformation in the banking industry has led to the increasing popularity of digital banking platforms, offering convenient and seamless banking experiences to customers. These platforms enable online transactions and personalized banking services, catering to evolving customer preferences. However, the adoption of digital banking platforms is not without challenges. Data privacy and security risks are major concerns for enterprises, as they grapple with the protection of their data in the IT infrastructure.
Cloud infrastructure, which forms the backbone of many digital banking platforms, is particularly vulnerable due to its open architecture and shared resources. Hackers can exploit loopholes and vulnerabilities in the system, putting sensitive financial data at risk. Despite these challenges, the benefits of digital banking platforms, such as increased efficiency and accessibility, continue to drive their adoption in the industry. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Cor Financial Solutions Ltd. - The company offers digital banking platform such as bitarisk, salerio, and SureVu.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Digital banking platforms have revolutionized the way people manage their finances, offering convenience and accessibility through software solutions on smartphones, computers, and IoT devices. Banks have embraced automated platforms, leveraging cloud computing and cloud storage for online banking services. This digital transformation has led to increased productivity and cost reductions for banks, while also presenting income prospects for fintech firms. Consumer electronics such as laptops, cell phones, and PCS have become essential tools for accessing digital services and mobile apps. The user experience of these platforms is crucial for customer loyalty, with seamless banking experiences and personalized services becoming the norm. Artificial intelligence (AI) is also playing a significant role in digital banking, enhancing the convenience of online transactions and remote account management.
The technological infrastructure of these platforms relies on high internet connectivity rates and reliable telecommunication networks. The deployment of digital banking platforms can be on-premise or through Software as a Service (SaaS), allowing for flexible and scalable solutions. The trend towards inclusive banking and retail banking has led to inter-account transfers and other innovative features, catering to diverse customer preferences. Digital platforms offer convenient banking experiences, enabling online payments and mobile banking, and providing a more efficient and accessible way to manage finances. The future of banking lies in the continued digital transformation, as tech-savvy consumers demand more advanced and personalized services.
Market Scope |
|
Report Coverage |
Details |
Page number |
135 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 16.9% |
Market Growth 2024-2028 |
USD 25.58 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
13.0 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 37% |
Key countries |
US, China, UK, Germany, and India |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alkami Technology Inc., Apiture, Backbase B.V., Cor Financial Solutions Ltd., ebankIT Omnichannel Innovation SA, Fidelity National Information Services Inc., Finastra, Fiserv Inc., FNZ Group Technologies Ltd., Infosys Ltd., Intellect Design Arena Ltd., nCino Inc., NCR Voyix Corp., Oracle Corp., SAP SE, SoFi Technologies Inc., Sopra Banking Software, Tata Sons Pvt. Ltd., Temenos AG, and VSoft Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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