The global digital banking platform request size was valued at USD 20.8 billion in 2021 and is anticipated to expand at a CAGR of 20.5 between 2022 and 2030. Demand for digital banking is growing due to the increased penetration of smartphones, computers, and internet connectivity., IoT bias, and artificial intelligence( AI). There are several benefits to banks’ paradigm shift from traditional networks to digital and automated platforms, including increased productivity, reduced costs, and increased profit prospects. In addition, the recent growth of pall computing and storehouse has increased the significance of these technologies in the digital banking platform request.
The onset of the COVID-19 epidemic has led to an increase in online banking conditioning, egging both individual guests and businesses that were preliminarily opposed to online banking to switch to digital banking as their new standard practice. In addition, the growing demand for consumer electronics products similar to laptops, mobile phones, and computers is substantially a result of technological advancements and consumer tastes in both developed and developing countries. guests frequently use bias to pierce a range of digital services in the moment’s terrain. A significant number of consumers now use mobile apps or mobile cybersurfers to pierce their bank accounts.
Banks can move into digital ecosystems with easy- to- emplace and customized results for digital banking platforms. Interactive websites and mobile banking apps help increase customer fidelity by perfecting client service. The growing demand for smartphones is anticipated to increase the number of digital banking consumers, which in turn will soon increase the need for digital banking platform results.
Banks cooperate more frequently with fintech companies and external operations. This is a palm-palm situation as it enables flexible plutocrat operation for consumers and improves the stoner experience without the bank having to fully catch its system. In addition, it offers stability and an occasion for businesses to attract new guests, thereby contributing to the growth of the digital banking platform request.
Deployment Statistics
In terms of deployment, the digital platform banking request has been segmented into on-premise and pall. The on-premise member reckoned for the largest profit share of 71.2 in 2021 and is anticipated to parade a CAGR of 20.4 over the cast period. The on-premise model is popular with numerous druggies and is more secure than using pall software. In addition, security and IT labor force have direct access to the software because it’s installed and used simply on the stoner’s network. workers have full control over its configuration, operation, and security.
The pall member is reckoned for the alternate-largest profit share in 2021 and is anticipated to reveal the loftiest CAGR of 20.7 during the cast period. pall and SaaS relinquishment will be critical to the unborn success of inclusive banking. The geography of inclusive banking is grueling, but much of that’s neutralized by the benefits of pall and SaaS that feed underserved communities. The fiscal query caused by the COVID- 19 extremity has made Cloud and SaaS technologies seductive indeed to the advanced world.
Mode statistics
The online banking member dominated the digital banking platform request with a profit share of 80.7 in 2021 and is anticipated to continue to dominate with a CAGR of 20.1 during the cast period. The newest way of furnishing retail banking services is online banking. Online banking refers to colorful services similar to transfers between accounts, balanced reporting, and other common tasks of retail banking.
These services are used by guests with whom they can request information and use telecommunication networks to pay bills etc., without leaving their homes or places of business. The mobile banking member is anticipated to parade a CAGR of 22.1 during the cast period. crucial factors contributing to the success of mobile banking include lower service freights and adding smartphone penetration.
Element statistics
The platform member dominated the digital banking platform request and had a profit share of 59.6 in 2021. The services member is anticipated to register the loftiest CAGR of 20 during the cast period. Since the preface of fintech, when tech commercial titans began pushing reforms and developing new platforms for doing business, banks have continued to suffer digital metamorphosis. To meet customer requirements and proactively introduce new products, banks are embracing digital technologies and taking full advantage of these advances.
The move of fiscal services to the pall provides an occasion to develop and strengthen a client-centric strategy that lowers walls to entry in the sector and expands access to banking results. also, it opens up possibilities for entirely new service packages that can take advantage of scale, data, and technology. thus, it can be briskly and lightly to pierce data to ensure nonsupervisory reporting, alleviate threat and identify abnormalities in threat operation.
Service statistics
The professional services member dominated the request, holding a profit share of 63.0 in 2021. On the other hand, the managed services member is anticipated to register the loftiest CAGR of 21.7 over the cast period. Managed data center services can help optimize business operations in a cold-blooded IT armature by adding business robotization and strengthening business governance. As the frequency of cyber-attacks increases, the use of managed security services in end-use diligence is anticipated to grow.
Managed security services are frequently used in business operations to cover sensitive data. The need for and relinquishment of managed security services is driven by the enormous challenges that adding network complexity creates for effective data security operations. The demand for managed security services has increased as they help businesses automate compliance monitoring and also help them identify and alleviate pitfalls through security checkups.
While customer demands and competitive pressures are driving banks to completely embrace digitization, performance demands are forcing lenders to cut costs and maintain operating perimeters. Arising technologies similar to artificial intelligence and robotics are helping banks effectively address these limits as new nonsupervisory conditions and data protection legislation add further stress to formerly limited coffers.
Statistics type
The retail banking segment had a revenue share of over 29.4% in 2021 and is expected to exhibit a CAGR of 20.8% during the forecast period. Banking faces challenges and opportunities due to the rise of digital banking, the development of new technologies, the intermingling of industry ecosystems, and the increased emphasis on innovation. Customers are increasingly using digital platforms and fintech solutions, breaking the bonds that previously existed for basic financial services such as deposits, loans, payments, and investments. For example, according to Invest India, the Unified Payments Interface (UPI) in India has 323 participating banks as of May 2022 and recorded 5.9 billion monthly transactions totaling more than $130 billion.
Key companies and market share statistics
The digital banking platform market has a fragmented competitive landscape as it includes various regional and global market players. Providing a strong digital channel experience is an advantage for banks around the world. Banks require a secure solution that provides a unified user experience across channels and devices and offers the insights needed to make wise decisions. Players incorporate strategies like partnerships etc., to remain competitive in the market.
In June 2020, Summit Partners invested US$37 million in Appway to help it expand globally. The money is expected to be used to help and strengthen financial services in the new era of digital connectivity by accelerating international growth, product development, and technological innovation.
In July 2022, Revolut, a digital banking platform, said it would soon make its app easier to use in Sri Lanka, Azerbaijan, Ecuador, Chile, and Oman. This would allow users to send money to over 50 countries using over 30 different currencies. Customers who transfer money to other Revolut users will not be charged a fee, but transfers to non-Revolut accounts will incur a 1% fee.
In July 2019, Al Ahli Bank of Kuwait partnered with EdgeVerve Systems Limited to automate robotic processes. The business would be able to deploy Assist Edge robotic process automation.
Image Source: Research and Market
Also read: 2023 Digital Banking Trends and the Future of Banking
