USD 25.18 Billion
Digital Banking Platform Market Size, Share, Growth Analysis, By Deployment(On-Premise, and Cloud), By Type(Retail Banking, Corporate Banking, and Investment Banking), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45A2134 |
Region:
Global |
Published Date: March, 2024
Pages:
197
|Tables:
62
|Figures:
75
Digital Banking Platform Market Insights
Global Digital Banking Platform Market size was valued at USD 9.35 Billion in 2022 and is poised to grow from USD 10.53 Billion in 2023 to USD 28.40 Billion by 2031, at a CAGR of 13.2% during the forecast period (2024-2031).
One of the major drivers of the global digital banking platform market is the rapidly increasing adoption of the same services by financial institutions. On the other hand, raising demand for convenience and security in the banking experience drives the market from the consumer side. The digital banking platform aim to transform the traditional process and service associated with banking through the power of technology and digital channels. It improves customer experience, enhance operational efficiency of any financial institution, and offer frictionless, safe banking across all digital touchpoint. Digital banking platforms help banks adjust to evolving customer expectations and remain competitive in the digital space through self-service capabilities, personalized interactions, and advanced analytics.
The global digital banking platform market dynamics are heavily influenced by the younger generation, more precisely by Gen Z or Digital Natives. The surge in mobile banking adoption—20.7 million in 2020 to 47.8 million by 2026—is induced by their preferences towards managing finances through digital channels. Banks are shifting their offerings as much as possible to favor this generation's needs, putting the user at the heart of product designing and seamless experience to win and retain customers across generations. The fact that, globally, everyone now has access to at least one smartphone and an internet connection has caused democratic access to banking services and has fueled the growth of digital banking platforms.
The active online banking users have followed a steep growth curve and are further expected to increase by 16.2 percent in the period 2022 through 2024. The growth of mobile banking has been exponential, and lately, it was reported that 89 percent of all customers use their smartphones to execute banking operations, which clearly states that smartphones are acting as the principal driver of demand for digital banking platforms.
US Digital Banking Platform Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
On-Premise
Fastest Growth
Cloud
Growth Rate
20.9% CAGR
Global Digital Banking Platform Market ($ Bn)
Country Share for Asia Pacific Region (%)
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Digital Banking Platform Market Segmental Analysis
The global digital banking platform market is segmented into Type, Deployment and Region. Based on Type, the market is segmented into Retail Banking, Corporate Banking, and Investment Banking. Based on Deployment, the market is segmented into On-premises, and Cloud. Based on Region, the market is segmented into North America, Europe, Asia-Pacific, Middle East and Africa, and Latin America.
Analysis by Type
Based on type, the market is segmented into retail banking, corporate banking, and investment banking.
In 2023, the retail banking segment emerged as a significant player in the digital banking platform market, capturing a revenue share of approx. 50%. This segment is projected to witness a robust CAGR of 13.9% during the forecast period. This dominance is underscored by the profound shift towards digital channels for various financial transactions and services. The retail banking industry is undergoing a transformative phase, driven by the rise of digital banking, advancements in technology, the convergence of industrial ecosystems, and a growing emphasis on innovation. Customers are increasingly turning to digital platforms and fintech solutions, which has led to the fragmentation of traditional banking relationships for services like deposits, loans, payments, and investments.
The investment banking segment dominated the market in 2023, holding a revenue share of USD 16.70 billion in 2023. This segment is expected to showcase a highest CAGR of 14.3% in the forecast period. Following the reopening of international markets and government-led economic stimulus measures to mitigate the impacts of the COVID-19 pandemic, the investment banking sector has witnessed a significant surge in activity. Many investment banks have resumed operations from office locations and started scheduling limited in-person client meetings. To adapt to the changing landscape and reshape deal origination strategies, investment banks have begun leveraging hybrid conference approaches and incorporating the latest technologies.
Analysis by Deployment
Based on deployment, the market is segmented into on-premises, and cloud.
The global digital banking platform market is undergoing a drastic change of cloud-based deployments, and it is estimated it would continue its dominance with an estimated market share of over 74% and is expected to hold market share of approx. 91% by 2031. Amongst all drivers of cloud deployment, our analysis has been able to find the principal driver of adoption in cost efficiency. Cloud-based platforms provide banks with pay-as-you-go and scalable pricing models that enable them to bypass huge upfront infrastructure investments and correlate their costs to actual usage. Essentially, the trend being noticed by most banks is the subscription-based mode of payment. For example, a UK-based company called Finastra is already shifting its core banking platform to subscription-based offering. This demonstrate demand for scalable and cost-effective solution in digital banking, thereby fitting with institutional goal of adapting to evolving market dynamic and customer preference.
The cloud segment also exhibits the highest CAGR of 16.1% throughout the forecast period making it the fastest growing segment as well. Cloud and SaaS adoption are part of inclusive banking. Inclusive banking looks specifically at sections of society underserved by traditional banking services, and Cloud and SaaS bring considerable advantages in this space. Indeed, the adoption of these technologies becomes even more critical in the aftermath of the COVID-19 crisis, which has made people feel more financially insecure. Cloud and SaaS technologies not only empower inclusive banking in unserved communities but also find appeal in the developed world due to their flexibility and convenience.
Global Digital Banking Platform Market By Deployment
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Digital Banking Platform Market Regional Insights
In 2023, Asia Pacific emerged as the dominant region in the global digital banking platform market, with the highest CAGR of 14.0%. With India and Japan emerged as the dominating countries with revenue share of USD 1.78 billion and USD 8.50 billion respectively. This region is on the edge of explosive growth, with new digital market players entering the market and disrupting the industry every day as it reinvents the banking system for consumers and businesses. The expansion is powered by the new demand for mobile and online banking alternatives. The opportunities for existing players and new entrants alike look particularly bright, with regulators doling out licenses and setting standards for a new generation of banking. Most notably, this is a potential that an India-based digital banking platform startup, WeRize, has been able to successfully tap into. WeRize has delivered over 1,000 financial products to small cities. In the most recent funding round, WeRize declared USD 8 million to put forward the appetite for fresh and innovative digital banking solutions in this region.
North America, the second-largest regional market in 2023. The region is expected to demonstrate a healthy CAGR of 13.6% during the forecast period. One of the major trends in the North American market is an increased adoption across industries of cloud-based solutions, which extends to the banking and financial sector. Banks are actively embracing cloud-based solutions for a digital banking platform, and this trend is most likely to go in this direction. What works in its favor is low start-up costs, with the added advantages of quick updates and enhancements that help financial institutions be agile in a fast-changing market. US stands as the dominating country, standing growing with a CAGR of 13.8% closely followed by Canada with a CAGR of 12.3% during the forecasted period in this region.
Global Digital Banking Platform Market By Region
- Largest
- Fastest
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Digital Banking Platform Market Dynamics
Digital Banking Platform Market Drivers
Adoption of Digital Banking Services Drives the Market Expansion
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Across the globe, customers are fast moving towards digital banking services because of the conveniences and accessibility and other customized experiences this channel offers. The banks try to give broad, all-inclusive digital banking platforms that would help customers carry out wide scope financial activities online or through a mobile app. For example, JPMorgan Chase is one of the biggest banks in the United States, which posted a tremendous increase in the adoption of digital banking. Accordingly, in 2022, about 75% of their customers were actively using digital banking services.
Enhancing Operational Efficiency
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Banks are under pressure to manage their costs while giving flawless customer experience. Here's how digital banking platforms prove helpful: they automate most of the processes, reducing manual interventions and enabling efficient data management and analytics. This will hone not only the speed and accuracy of transactions but also help banks gain valuable insights from customers' behaviors and preferences. For example, BBVA (a Spanish multinational banking group) realized that a digital banking platform would allow the bank to reduce operational cost overheads, mainly achieved by pulling together a raft of different legacy systems into a single, streamlined infrastructure.
Restraints
Security and Privacy Concerns Can Affect the Digital Banking Adoption
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Together with the wide acceptance of digital banking platforms comes strong concerns related to cybersecurity and data privacy. Banks are under pressure to make a worthy investment in robust security measures to meet the strict regulatory requirements concerning customer information against Cyber-attacks. In case of any breach of security or privacy, a severe reduction in customer trust is related to a reputation loss and financial loss for banks. Therefore, these concerns are of prime importance to be addressed so that the growth of the market of digital banking platforms remains sustainable.
Regulatory and Compliance Challenges Can Hinder for Banks and Other Financial Institutions
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The banking sector happens to be among the most heavily regulated, and banks always must meet compliance requirements by the multiple authorities concerned in their operations. To establish digital banking platforms, therefore, complex regulatory frameworks in place have to be followed. Furthermore, banks are supposed to comply with data protection legislation, financial anti-money laundering laws, and customer authentication policy for lawful and ethical operations. Against this background, the banks have to negotiate these regulatory landscapes and fully exploit digital banking platforms.
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Digital Banking Platform Market Competitive Landscape
The global digital banking platform market is among the very aggressive markets, inexhaustibly eyed by many parties. Companies in this space offer a broad spectrum of digital banking solutions and seek to equip financial institutions worldwide with new generation and customer-centric platforms. The competitive landscape encompasses fierce competitive pressures, technological advancement, strategic partnerships, and continuous product development. Most marketplace participants are focused on continuous innovation, investing in research and development, and extending their product portfolios to meet the changing needs of financial institutions in order to enhance their competitive edge. Across the market, strategic partnerships and collaborations with fintech firms and financial institutions can be witnessed, wherein the companies make full use of each other's strengths to strengthen their position.
Digital Banking Platform Market Top Player’s Company Profiles
- FIS (US)
- Oracle (US)
- Infosys (India)
- Appway (Switzerland)
- SAP SE (Germany)
- Tata Consultancy Services (India)
- Capgemini (France)
- IBM (US)
- Intellect Design Arena Ltd (India)
- Backbase (Netherlands)
- CREALOGIX (Switzerland)
- EdgeVerve Systems Ltd. (India)
- Avaloq (Switzerland)
- Profile Software (Greece)
- Technisys (US)
- ERI Bancaire (Switzerland)
- Mambu (Germany)
Digital Banking Platform Market Recent Developments
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In February 2024, Velmie launched its Business Banking Platform designed to help financial services providers and FinTechs broaden their product offerings. The platform enables these companies to cater to business client needs, including corporate payroll, automatization of payments, invoice factoring, cryptocurrency payments and business deposits.
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In February 2024, Puerto Rico-based Segura Bank International launched a new digital bank for mid to high-earners in Latin America, powered by Temenos’ cloud-native core banking platform. Temenos’ cloud-native platform will help Segura Bank International to launch banking products faster and scale efficiently as it expands across the continent.
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In December 2023, Alkami Technology, Inc. announced that Quontic Bank, the adaptive digital bank, partnered with the Alkami Digital Banking Platform, converting the bank's customer base to Alkami's single platform for online banking. As a purely digital bank, a best-in-class web and mobile presence is business-critical for Quontic Bank. The Bank's decision to leverage Alkami's Digital Banking Solution speaks to its commitment to delivering a seamless user experience for its retail customers.
Digital Banking Platform Key Market Trends
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Integration of Artificial Intelligence (AI) and Machine Learning (ML): AI and ML technologies can make up a high level in a digital banking platform—from personalization in customer experience to process automation, anti-fraud detection, and risk management optimization. For example, Bank of America uses AI-based virtual assistants to develop more intelligent relations with customers and customized advice. Through continued innovation and improvements in operational efficiency, AI and ML are likely to further transform the market for digital banking platforms.
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Growing Influence of Open Banking and API Integration: Digital banking platform markets are now being driven by open banking initiatives and a rise in integrations of Application Programming Interfaces (APIs). Open banking will allow banks to securely open customer data to third-party providers for the development of innovative financial services, hence creating collaboration between banks and FinTech companies. API integration will promote smooth exchange of data between the banking systems and shall help in the development of new products and services. This trend increases competitiveness, stimulates innovation, and improves the experience in a customer's life within the digital banking ecosystem.
Digital Banking Platform Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global digital banking platform market analysis, the market has a lot of protentional and has been going through extensive changes and demands. These include growing smartphone adoption, increasing demand from customers for faultless digital experiences, and the need for cost-effective banking solutions. The bank may provide its customers with these services preferably through such platforms: online account management, mobile payments, and transfers, and customized advice in the realm of finances. However, what remains on the other side of the coin includes concerns over insecurity and privacy of data, compliance with regulatory requirements, and building up appropriate infrastructure. Despite these challenges, though, market opportunities remain vast—for instance, the incorporation of AI and ML technologies, digital banking expanded across emerging economies, and open banking initiatives taking a seat. Some of the most important trends in this market include neobanks and fintech startups, shifting towards cloud-based platforms, and enhanced user experience due to intuitive interfaces and personalized services. The global digital banking platform market has enormous potential for financial institutions in re-designing their operations, meeting evolving customer demand, and maintaining competitiveness as the shift into the digital age intensifies.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 9.35 Billion |
| Market size value in 2031 | USD 28.40 Billion |
| Growth Rate | 13.2% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Digital Banking Platform Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Digital Banking Platform Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Digital Banking Platform Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Digital Banking Platform Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Digital Banking Platform Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Digital Banking Platform Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Digital Banking Platform Market Report Snapshots
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