Digital Banking Market
Digital banking is the digitization of the banking sector, where all the banking services and activities can be accessed by users over the internet. All the activities and programs offered by banks are usually available to the customers of a particular branch through designated representatives. However, with the advent and growth of digital banking, customers can now access their financial data and enjoy personalized banking services through their mobiles or desktops. Digital banking includes high levels of automation process and web-based services. It includes APIs (Application Programming Interface) that enables cross-institutional service composition for delivering banking products and performs transactions efficiently. They support businesses to transfer payments easily from one account to another.
The increasing use of digital devices in managing a business, rising demand for cloud-based solutions, and the growing number of smartphones are some major factors that are driving the market digital banking market. Technological advancements along with the advent of AI-based smart solutions have resulted in an increased number of companies opting for these digital solutions. It saves time and provides customers with new solutions at their comfort and discretion. However, the lack of organized internet infrastructure and several security issues may hamper the overall growth of the digital banking market over the forecast period. Change in technological solutions along with the higher emphasis on comfort through connected devices will provide new opportunities for the digital banking market globally.
On the basis of banking type, the market for digital banking is divided into retail, corporate, and investment banking. By solution, the market comprises payments, processing services, customer and channel management, and risk management. The organization sizes of this market include small- and medium-sized enterprises and large-sized enterprises. Based on technology, the digital banking market is divided into BaaS (banking as a service), BaaP (banking as a platform), cloud-based, white label banking, and chatbots. Banking cards, uniform payment interface (UPI), the point of sale (POS), mobile wallets, unstructured supplementary service data (USSD), mobile banking, internet banking, and micro ATMs form the payment vertical of the global digital banking market.
By region, North America holds the maximum share of the digital banking market and is likely to grow significantly over the forecast time period. Technological advancements and the increasing use of AI-based solutions across multiple business sectors are the major growth drivers of the digital banking market in the Asia Pacific region.
Some major players of the global digital banking market are ACI Worldwide, Ally Financial Inc., Backbase, Capital Banking Solutions, CR2, Digiliti Money, Inc., Fiserv, Inc., Infosys Ltd., Innofis, JPMorgan Chase & Co., Kony, Inc., Microsoft Corporation, Oracle, Tata Consultancy Services, Technisys, Temenos Headquarters SA, TRG Mobilearth Inc., and Urban FT.