Appway, Artificial intelligence, Artificial Intelligence (AI), Backbase, big data analytics, Blockchain, BNY Mellon, Crealogix, Daily news, Digital banking, Digital banking market, digital disruption, E-Money, ebanklT, EdgeVerve Systems, ETRONIKA, Fidor, Finastra, FinTech, Fiserv, Halcom, IE Digital, Intellect Design Arena, Kony, Mobile Banking, Mobile Remittance, Mobile Wallet, NETinfo, NF Innova, Open Banking, Oracle, P2P, SAB, SAP, Sopra, Tagit, TCS, Technisys, Temenos, Worldline -

Digital banking market to cross $9 trillion by 2024

The global digital banking market is set to grow from its current market value of more than $7 billion to over $9 trillion by 2024; according to a new research report by Global Market Insights.

The increasing venture capital investment in FinTech sector is propelling the digital banking market. Over the past five years, FinTech has emerged as the most lucrative sector and the venture capitalists are investing billions in the sector to make profits.

In 2017, approximately $16.5 billion investment was witnessed in the FinTech companies, increasing from $3.7 billion in 2013. Acknowledging the rise of FinTech players, banks are looking to boost their investments in technology. While some banks are collaborating, or investing in the FinTech companies to develop more customer-centric products, others are acquiring the FinTech players to acquire technical expertise and expand their product portfolio.

The supportive government initiatives & policies for the promotion of digital banking services is also driving the digital banking market. Governments across the globe are constantly working on accelerating the adoption of digital banking services. The demonetisation activities and digitisation policies adopted by the government are encouraging the adoption of digital payment solutions. Moreover, governments are also offering tax incentives and subsidies to the FinTech players to encourage the adoption of digital solutions.

 Digital Banking Market

Corporate banking held over 13% share in the digital banking market in 2017. The emergence of the FinTech players is the primary factor accelerating the adoption of digitisation among the corporate banks. The corporate banks are experiencing tough competition from the FinTech companies that are offering standalone products at low costs.

This is encouraging corporate banks to embrace the technologies to provide a better experience to their customers. Moreover, the integration of the advanced technologies into the banking platforms, such as artificial intelligence, blockchain, big data analytics, is also augmenting the demand for digital solutions among the corporate banking sector to analyse the customer behaviour and meet their requirements.

US Digital Banking Market Revenue, By Type, 2017 & 2024Non-transaction services in the digital banking market are anticipated to grow at a CAGR of 14% during the projected timeline. The increasing need to provide enhanced customer experience is driving the adoption of non-transaction digital services among the banking institutes.

The digital disruption and generational shift cause fundamental changes in customer behaviour that are rapidly influencing customer expectations from banks.

 

Over a third of the millennials (population aged between 16 to 34) believe they will be able to live a bank-free existence in the future. Customers, especially the younger population who are digitally savvy, hyper-connected, and choice conscious have an inclination toward tech-oriented services as their preferences are changing. These customers are accustomed to digital experiences offered by online retailers and expect the same or perhaps a richer experience from the banks.

The North American digital banking market is anticipated to grow at a CAGR of 2.5% during the forecast period. The market is driven by the early adoption of digital solutions among the banking institutes. The high penetration of internet and smartphone users is also augmenting the demand for digital banking solutions. Large volumes of credit card and debit card transactions in the region also promote the digital banking market.

The key players in the digital banking market space are Appway, Backbase, BNY Mellon, Crealogix, ebanklT, EdgeVerve Systems, ETRONIKA, Fidor, Finastra, Fiserv, Halcom, IE Digital, Intellect Design Arena, Kony, NETinfo, NF Innova, Oracle, SAB, SAP, Sopra, Tagit, TCS, Technisys, Temenos, Worldline.

The post Digital banking market to cross $9 trillion by 2024 appeared first on Payments Cards & Mobile.