USD 25.18 Billion
Global Digital Banking Platform Market Size, Share, Growth Analysis, By Deployment(On-Premise, and Cloud), By Type(Retail Banking, Corporate Banking) - Industry Forecast 2024-2031
Report ID:
SQMIG45A2134 |
Region:
Global |
Published Date: March, 2024
Pages:
197
|
Tables:
62 |
Figures:
75
Global Digital Banking Platform Market Insights
Global Digital Banking Platform Market size was valued at USD 25.18 Billion in 2022 and is poised to grow from USD 30.44 Billion in 2023 to USD 138.96 Billion by 2031, at a CAGR of 20.9% during the forecast period (2024-2031).
The global Digital banking platform market is driven by the increasing adoption of digital banking services by financial institutions and the growing demand for convenient and secure banking experiences by consumers. The purpose of the digital banking platform market is to revolutionize traditional banking processes and services by leveraging technology and digital channels. It aims to enhance customer experiences, improve operational efficiency for financial institutions, and provide a seamless and secure banking experience across various digital touchpoints. By offering self-service capabilities, personalized interactions, and advanced analytics, digital banking platforms enable banks to cater to evolving customer expectations and compete effectively in the digital era.
One of the primary driving factors in the digital banking platform market is the rising demand for enhanced customer experiences. Consumers increasingly expect seamless and user-friendly banking services accessible through multiple devices, anytime and anywhere. Digital banking platforms enable financial institutions to deliver personalized services, real-time access to accounts, and self-service options, meeting the evolving demands of tech-savvy customers. One of the main restraining factors in the market is the concern over data security and privacy. As digital banking platforms involve the storage and transmission of sensitive financial information, ensuring robust security measures is crucial. The potential risk of data breaches and cyber threats poses challenges for financial institutions and may hinder the adoption of digital banking platforms. Building trust and implementing stringent security measures are vital to overcome this restraining factor.
The digital banking platform market faces several challenges, including regulatory compliance, legacy system integration, and the need for skilled professionals. Adhering to evolving regulatory requirements and ensuring compliance with data protection and privacy laws can be complex and costly for financial institutions. Integrating digital banking platforms with existing legacy systems and infrastructure can also pose technical challenges. The digital banking platform market presents significant opportunities for innovation and growth. The increasing adoption of mobile devices, advancements in artificial intelligence and machine learning, and the emergence of open banking initiatives create avenues for financial institutions to enhance their digital offerings. The global digital banking platform market aims to transform traditional banking processes and deliver convenient, secure, and personalized banking experiences. The market is driven by the demand for enhanced customer experiences, while data security concerns act as a restraining factor. Challenges include regulatory compliance, legacy system integration, and the need for skilled professionals. However, the market offers opportunities for innovation and growth through mobile adoption, AI advancements, and open banking initiatives, enabling financial institutions to thrive in the digital age.
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 (%)
Global Digital Banking Platform Market By Deployment ($ Bn)
Global Digital Banking Platform Market By Deployment (%)
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Global Digital Banking Platform Market Segmental Analysis
The global digital banking platform market is segmented on the deployment, type and region. By deployment, the market is segmented into on-premise, cloud. By type, the market is segmented into retail banking, corporate banking, and investment banking. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Digital Banking Platform Market Analysis by Deployment
In 2022, the on-premise segment emerged as the dominant player in the digital banking platform market, holding a substantial revenue share of 71.2%. This segment is projected to maintain a strong growth trajectory with a promising compound annual growth rate (CAGR) of 20.4% during the forecast period. The on-premise model offers several advantages that appeal to users, including enhanced security compared to cloud-based software. With on-premise solutions, security and IT staff have direct access to the software, as it is installed and operated exclusively within the user's network. This provides a sense of control over the software's configuration, management, and security, instilling confidence in users.
The cloud segment captured the second-largest revenue share in 2022 and is anticipated to exhibit the highest CAGR of 20.7% throughout the forecast period. Cloud and Software-as-a-Service (SaaS) adoption play a crucial role in the success of inclusive banking. Inclusive banking aims to cater to communities with limited access to traditional financial services, and the benefits of Cloud and SaaS solutions greatly support this objective. The adoption of these technologies becomes even more significant in the aftermath of the COVID-19 crisis, where financial insecurity has impacted people globally. Cloud and SaaS technology not only enable inclusive banking in underserved communities but also find appeal in the developed world due to the flexibility and convenience they offer.
Digital Banking Platform Market Analysis by Type
In 2022, the retail banking segment emerged as a significant player in the digital banking platform market, capturing a revenue share of over 29.4%. This segment is projected to witness a robust CAGR of 20.8% during the forecast period. 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 2022, holding a revenue share of 35.8%. This segment is expected to showcase a CAGR of 20.4% 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.
Global Digital Banking Platform Market By Deployment, 2023 (%)
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Global Digital Banking Platform Market Regional Insights
In 2022, Asia Pacific emerged as the dominant region in the global digital banking platform market, holding a significant share of 30.5%. This region is poised for remarkable expansion as new digital firms disrupt the sector and reshape banking experiences for individuals and businesses. The increasing demand for mobile and online banking alternatives is driving this growth. The market presents exceptional opportunities for both existing players and new entrants, as regulators allocate licenses and define standards for a new era of banking. Notably, WeRize, an India-based digital banking platform startup, has successfully tapped into this potential by offering financial products to over 1,000 small cities. In a recent funding round, WeRize raised USD 8 million, showcasing the appetite for innovative digital banking solutions in the region.
North America, the second-largest regional market in 2022, accounted for a revenue share of 27.2%. The region is expected to demonstrate a healthy CAGR of 19.9% during the forecast period. One of the key trends in the North American market is the increasing adoption of cloud-based solutions across various industries, including banking and finance. Banks are actively embracing cloud-based digital banking platform solutions, and this trend is projected to continue. The appeal lies in the low startup costs and the ability to receive quick updates and enhancements, enabling financial institutions to stay agile in a rapidly evolving market.
Global Digital Banking Platform Market By Region, 2024-2031
- Largest
- Fastest
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Global Digital Banking Platform Market Dynamics
Digital Banking Platform Market Drivers
Adoption of Digital Banking Services
- Customers worldwide are increasingly embracing digital banking services for their convenience, accessibility, and personalized experiences. Banks are responding by offering comprehensive digital banking platforms that enable customers to perform a wide range of financial activities online or through mobile applications. For example, JPMorgan Chase, one of the largest banks in the United States, reported a significant increase in digital adoption, with approximately 75% of their customers actively using digital banking services in 2022.
Enhancing Operational Efficiency
- Banks are under pressure to streamline their operations and reduce costs while providing seamless customer experiences. Digital banking platforms play a crucial role in achieving these objectives by automating processes, reducing manual interventions, and enabling efficient data management and analytics. This not only improves the speed and accuracy of transactions but also allows banks to gain valuable insights into customer behavior and preferences. For instance, BBVA, a Spanish multinational banking group, implemented a digital banking platform that helped them reduce their operational costs by consolidating multiple legacy systems into a unified, streamlined infrastructure.
Digital Banking Platform Market Restraints
Security and Privacy Concerns
- The increasing reliance on digital banking platforms raises concerns about cybersecurity and data privacy. Banks need to invest in robust security measures and comply with stringent regulatory requirements to protect customer data and prevent cyber threats. Any breach of security or privacy can severely damage customer trust and lead to reputational and financial losses for banks. Addressing these concerns is essential for the sustainable growth of the digital banking platform market.
Regulatory and Compliance Challenges
- The banking industry is highly regulated, with strict compliance requirements imposed by various authorities. Implementing digital banking platforms necessitates adherence to complex regulatory frameworks, which can pose challenges for banks. Compliance with data protection regulations, anti-money laundering laws, and customer authentication protocols is essential to ensure legal and ethical operations. Banks must navigate these regulatory landscapes effectively to maximize the benefits of digital banking platforms.
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Global Digital Banking Platform Market Competitive Landscape
The global digital banking platform market is highly competitive and comprises several prominent players vying for market share. These companies offer a wide range of digital banking solutions and strive to provide innovative and customer-centric platforms to financial institutions worldwide. The competitive landscape is characterized by intense competition, technological advancements, strategic partnerships, and continuous product development. To gain a competitive edge, players in the market are focused on continuous innovation, investing in research and development, and expanding their product portfolios to address the evolving needs of financial institutions. Strategic partnerships and collaborations with fintech firms and financial institutions are also common in the market, allowing companies to leverage each other's strengths and enhance their market 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, Monex USA announced an integration with Q2’s Digital Banking Platform via the Q2 Partner Accelerator Program. This integration allows financial institutions to work directly with Monex USA and benefit from its global payments and risk-hedging solutions.
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In February 2024, Dvara Money, a leading fintech company, has announced a strategic partnership with Jana Small Finance Bank Limited (Jana SFB). This collaboration aims to harness the technological capabilities of Jana SFB and the innovative Spark Money platform by Dvara Money to set new standards in digital banking services.
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In February 2024, digital banking platform Freo, operated by Mwyn Tech, secured undisclosed debt funding from the Small Industries Development Bank of India (SIDBI). The investment also marks SIDBI’s first debt bet on a fintech business.
Global Digital Banking Platform Key Market Trends
- Artificial Intelligence (AI) and Machine Learning (ML):AI and ML technologies are playing an increasingly significant role in digital banking platforms. These technologies enable banks to provide personalized customer experiences, automate processes, detect fraud, and optimize risk management. For example, Bank of America uses AI-powered virtual assistants to enhance customer interactions and provide personalized recommendations. AI and ML are expected to continue transforming the digital banking platform market by driving innovation and improving operational efficiencies.
- Open Banking and API Integration: Open banking initiatives and the integration of Application Programming Interfaces (APIs) are gaining momentum in the digital banking platform market. Open banking allows banks to share customer data securely with third-party providers, enabling the development of innovative financial services and fostering collaboration between banks and fintech companies. API integration facilitates seamless data exchange between different banking systems and enables the creation of new products and services. This trend promotes competition, fosters innovation, and enhances customer experiences in the digital banking ecosystem.
Global 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 increasing adoption of smartphones, rising customer expectations for seamless digital experiences, and the need for cost-effective banking solutions are the key growth drivers. These platforms enable banks to offer services like online account management, mobile payments, fund transfers, and personalized financial advice. However, the market also faces challenges such as concerns over data security and privacy, regulatory compliance, and the need for infrastructure investment. Despite these challenges, the market presents significant opportunities for growth, including the integration of artificial intelligence (AI) and machine learning (ML) technologies, the expansion of digital banking in emerging economies, and the rise of open banking initiatives. The key trends in the market include the emergence of neobanks and fintech startups, the shift towards cloud-based platforms, and the focus on enhancing user experience through intuitive interfaces and personalized services. Overall, the global digital banking platform market offers immense potential for financial institutions to transform their operations, meet evolving customer demands, and stay competitive in the digital era.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 25.18 Billion |
| Market size value in 2031 | USD 138.96 Billion |
| Growth Rate | 20.9% |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| 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 |
|
| 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 Global 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 Global 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 Global 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 Global 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 Global 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 Global 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.
Global Digital Banking Platform Market Report Snapshots
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