Digital Banking Platforms Market

Digital Banking Platforms Market Size (2022 – 2027)

The Global Digital Banking Platforms Market was worth US$ 8.2 billion in 2021, and it is estimated to reach a valuation of US$ 15.59 billion by the end of 2027, expanding at an annual growth rate of 11.3% between 2022 and 2027.

The Digital Banking Platform is the financial services that are provided 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 platform encourages cross-institutional services by connecting their services with other financial providers to offer customers complete digital banking services. But the core digital banking platforms are the customer and the user experience. In the fast and digital world, the digital banking platforms allow customers to potentially manage all of their finances with the help of their smartphones and other online channel which includes payments, investments, spending analytics etc. The digital banking platforms offers features and capabilities to customers and businesses includes checking & saving accounts, competitive interest rate 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 rate etc.

The digital banking platform is gaining popularity due to growing demand among banks for banking enhanced customer experience and increasing adoption of cloud based solutions by financial institutions, thus owing to the above features the demand of digital banking is increasing which further boosts the growth of the digital banking platform market.

MARKET DRIVERS

The rising demand of the customer centric solutions that enables banks to improve customer loyalty by providing enhanced services and fast solutions to customer queries propels the growth of the market.

Banking systems are becoming focused on adopting customer retention policies and attracting new customers by effectively communicating with them. A digital banking platform worked as channel that has capabilities that helps banks to facilitate personalized conversations across various channels, including the voice, web, and the mobile. It also offers banks to engage its customer at all touch points. Thus the 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.

MARKET RESTRAINTS

The lack of digital literacy in emerging countries around the globe which hinders the wide-scale adoption of online and mobile payment which in turn restricts the growth of Digital Banking Platform Market. Most of the countries of African continent have low digital literacy rate which lead to less number of digital transactions, therefore vendors in these regions are also hesitant to make investments, hence restricts the 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.

GLOBAL DIGITAL BANKING PLATFORMS MARKET REPORT COVERAGE:

Market Segmentation

Digital Banking Platforms Market - By Component:

• Platform
• Services

On the basis of component, the global digital banking platform market is segmented into platform and services. The platform segment is estimated to dominate the market during the forecast period as digital banking platform provides digitize banking operations, facilitating digital customer interactions and allowing banks to offer a host of digital financial products.

Digital Banking Platforms Market - By Banking Type:

• Retail Banking
• Corporate Banking
• Investment Banking

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 digital banking platform market over the forecast period. Retail banking has emerged as an important segment that requires digital banking platform in order to translate banking models across the globe. The digital revolution has significantly impacted marketplace with the changing behavior and expectation, 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.

Digital Banking Platforms Market - By Banking Mode:

• Online Banking
• Mobile Banking

On the basis of banking mode, the global digital banking platform market is segmented into Online Banking, Mobile Banking. Online banking is dominating the market because of high adoption rate and ease of doing transactions anytime. However, the mobile banking segment is going to boost the market growth over the forecast period due to increasing demand of e-transactions by mobile is fueling the growth of the market. The young crowd is making high use of mobile banking in its day to day life.

Digital Banking Platforms Market - By Deployment Mode:

• On-Premises
• Cloud

On the basis of banking mode, the global digital banking platform market is segmented into on-premises and cloud. Cloud type of deployment mode is anticipated to lead the market growth. Cloud based digital banking offer 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.

Digital Banking Platforms Market – By Region:

1. North America
2. Europe
3. Asia-Pacific
4. RoW (Rest of the World)

North America is accounted for the largest market share of digital banking platform market and is estimated to sustain its position in the coming years. In North America, United States is dominating the region due to 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 works towards the growth of the digital banking platform market. Mexico in North America region is estimated to have 359.7 million dollars market in 2027. 

Asia-Pacific region is estimated to witness highest CAGR during the forecast period. Asia-Pacific digital banking platform is estimated to have strong growth in the future due to constant rise in the technologies; there is a 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, Japan, 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 get 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 the responsible for the growth of digital banking platform market during the projected period.

In European region, Germany is dominating the European digital banking platform market due to the strong presence of the banking industry in the country.

Key Players

Some of the leading companies operating in the Global Digital Banking Platforms Market are:

• Alkami (US)
• Apiture (US)
• Appway (Switzerland)
• Backbase (Netherlands)
• BNY Mellon (US)
• CR2 (Ireland)
• EdgeVerve (India)
• ebankIT (England)
• Finastra (UK)
• Fiserv (US)

Recent Developments

• In December 2020, Tata Consultancy Services ( a leading global IT service, consulting, and business solution organization) has launched a new transformative Digital Bank Guarantee Platform. This platform is powered by the “Quartz Blockchain solution” as a part of the Banking Service Bureau which is operated by TCS for the digital banking industry in Israel.
• In March 2022, Finastra has announced that it has collaborated with Union of Arab Banks to help banks across Arab League member states. Through this collaboration, the Finstara’s Universal Banking Solution is combined with Arab Bank’s extensive ecosyatem of banks.