Digital Banking Platform Market Research, 2032
The global digital banking platform market size was valued at $30.4 billion in 2023, and is projected to reach $168.3 billion by 2032, growing at a CAGR of 20.9% from 2024 to 2032. A digital banking platform is an online interface provided by financial institutions, allowing customers to manage accounts, conduct transactions, and access banking services through web or mobile applications, enhancing convenience, efficiency, and accessibility.
Market Introduction and Definition
A digital banking platform is defined as the automated delivery of conventional and new banking products and services directly to the end users through interactive communication channels. It usually acts as a virtual portal allowing users to manage their accounts, transfer payments, pay bills, and process loan applications. Account management, mobile deposits, digital wallets, budgeting tools, and customer assistance are typical functions provided by the platform through chatbot or messaging services.
Furthermore, digital banking systems facilitate banks to simplify business operations, curb costs, and innovate through integrating modern technologies, such as artificial intelligence and data analytics to tailor services and enhance the decision-making process. Moreover, these platforms have become increasingly important as customers demand more convenience and accessibility, and as banks seek to reduce costs and improve efficiency. They also provide enhanced data analytics capabilities, allowing banks to better understand customer behaviors and preferences, leading to more personalized services and improved customer satisfaction. In addition, numerous banks and financial institutions are providing digital banking platform for increasing their customers across the globe and providing better customer experience to enhance their digital banking platform market.
Key Takeaways
The digital banking platform market share study covers 20 countries. The research includes a segment analysis of each country in terms of value ($Billion) for the projected period 2023-2032.
More than 1,500 product literature, industry releases, annual reports, and other documents of major digital banking platform industry participants, along with authentic industry journals, trade associations' releases, and government websites, have been reviewed to generate high-value industry insights.
The study integrated high-quality data, professional opinions and analysis, and critical independent perspectives. The research approach is intended to provide a balanced view of global markets and to assist stakeholders in making educated decisions in order to achieve their most ambitious growth objectives.
Key Market Dynamics
The digital banking platform market growth driven by factors such as surge in the number of Internet users, growth in a shift from traditional banking to online banking and rise in demand for personalized banking services. However, security and compliance issues in digital banking platforms, lack of digital literacy in emerging countries, and technical concerns associated with new technology integration and legacy systems restrain the growth of the digital banking platform market. In addition, the growth in the usage of machine learning and artificial intelligence in digital banking platforms, increase in innovative banking services, and rise in corporate investors are expected to provide ample opportunities for the growth of digital banking platform market forecast period.
Increase in adoption of cloud-based platforms to obtain higher scalability and increase in focus on digitalizing financial services among organizations are expected to drive demand for the digital banking platform market. Digitization has been one of the most widely adopted strategies in financial services to improve core processing capabilities and offer better consumer services and insights. In addition, these banks have reportedly increased their sales percentage by focusing on the digitalization of their financial services. Thus, increase in focus of organizations on digitalizing their financial services to achieve business efficiency, and better outcomes drives the growth of the digital banking platform market.
In addition, the rise in collaborations with fintech firms allow banks to harness innovative technologies such as AI-driven digital banking experiences and blockchain-enabled digital banking security, creating lucrative growth opportunities in the digital banking platform industry for corporate banking users. Moreover, governments globally are constantly promoting companies that deliver digital banking solutions to improve financial inclusion, resulting in a significant growth prospect for the digital banking platform market industry.
Regulatory framework: Global Digital Banking Platform Market
The regulatory framework for the global digital banking platform market is a complex and evolving landscape, influenced by numerous international, regional, and national regulations. It often includes laws and guidelines proposed to ensure the security, privacy, and integrity of financial transactions and data.
Basel III: Established by the Basel Committee on Banking Supervision, Basel III sets forth international regulatory standards on bank capital adequacy, emphasize testing, and market liquidity risk. It further influences digital banking by ensuring financial institutions maintain sufficient capital and leverage ratios.
Financial Action Task Force (FATF) : These guidelines aim to prevent money laundering and terrorist financing. Digital banking platforms must comply with these guidelines to prevent illicit financial activities.
General Data Protection Regulation (GDPR) : In the European Union, GDPR imposes strict data protection and privacy requirements on organizations, including digital banks. It mandates clear consent for data processing, data subject rights, and stringent penalties for non-compliance.
The People's Bank of China (PBoC) regulates digital banking, with a robust focus on cybersecurity through laws such as the Cybersecurity Law and the more recent Personal Information Protection Law (PIPL) , which emulates some aspects of GDPR in terms of data privacy.
The regulatory framework for the global digital banking platform market is shaped by a multitude of international, regional, and national regulations aimed at operating effectively and gaining trust in a highly competitive and rapidly evolving digital banking platform market.
Digital Banking Platform Market Segmentation
The digital banking platform market outlook is segmented into component, deployment model, type, mode, and region. By component, the market is divided into solutions and services. On the basis of deployment model, it is bifurcated into on-premises and cloud. By type, the market is bifurcated into retail banking and corporate banking. On the basis of mode, the market is categorized into online banking and mobile banking. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Regional/Country Market Outlook
The U.S. emerged as the leading region in the global digital banking platform market in 2023. The U.S. has digitally transformed the end-to-end credit journeys, which in turn has greatly contributed to delivering exclusively personalized and intuitive banking experiences. With innovations and technological advancements in financial services such as digital banking, it is evident that the U.S. is gaining high revenue benefits and significant traction in the global digital banking market. Furthermore, constant advancements in information technology causing increased development of interactive and consumer-friendly user interfaces of the websites and applications have led to changes in the preference of consumers for banking services. This factor is expected to create a high growth potential for the digital banking platform market. The region has the most advanced online banking consumer base, fueled by the presence of major global players and a high youth population with high product awareness, continuing to hold a prominent share in the global digital banking platform market in the future.
Further, the demand for digital banking platform is significantly increasing across the region to deliver fast and secure banking is also supporting the growth of the digital banking platform market. According to research studies, in 2020, more than 76% of Americans used their primary bank’s mobile app for routine banking activities, such as viewing account balances and deposit checks. In addition, the growing online banking consumer base followed by rise in youth population with high product awareness is expected to promote the demand for the digital banking platform market during the forecast period.
In March 2024, Germany’s Solaris, a banking-as-a-service (BaaS) fintech firm, raised $96 million in a Series F funding round led by SBI Group and other previous investors. Solaris stated that the use of new funds to onboard the Allgemeiner Deutscher Automobil-Club (ADAC) credit card program and further invest in the resilience of its platform.
In October 2023, South Korea’s top four banks, including KB Kookmin, Shinhan, Woorl, and Hana, strengthened their overseas operations, particularly in the digital banking business, to increase their non-interest gains. Such strategic moves by KB Kookmin, Shinhan, Hana, and Woori aimed at Southeast Asian market, which has a reasonably young population and a high smartphone uptake rate, indicate a wealth of digital-friendly consumers.
Industry Trends
In January 2024, Banorte took a significant step in Mexico’s digital bank expansion with the of Bineo, its first fully digital banking platform. The new financial institution, which aims for a digital-native audience, provides numerous conventional and online services. Bineo clients have the ability to access correspondent banking through Banorte, their ATMs, conventional banking, or completely digital options.
In September 2023, Chennai-based public sector bank, Indian Bank, rolled out a series of digital initiatives targeted at serving its customers, including providing loans to micro, small, and medium enterprises. Under its Project WAVE initiative, the bank has often redesigned critical banking processes and introduced 'home loan takeover' to deliver consumers the benefit of the best pricing, apart from vehicle loans, among many others. Further, the bank under its mobile application, IndOASIS, introduced several features such as the facility to book flights, hotels, and buses.
In February 2023, JPMorgan Chase declared a plan to introduce a digital bank in Germany in late 2024 or early 2025, citing people familiar with the plans. The bank has been hired in Berlin to support the plans and aims to make the city its base of EU consumer operations. JPMorgan also plans to develop its digital retail operations in other EU countries in later years.
Competitive Landscape
The major players operating in the digital banking platform market include Appway, Cor Financial Solution Ltd., Edgeverve, FIS Global, Fiserv, Inc., nCino Inc., Oracle Corporation, SAP SE, Temenos, and Vsoft Corporation. Other players in the digital banking platform market include Alkami Technology Inc., Finastra, Urban FT Group, Inc., Sopra Banking Software, Tata Consultancy Services, and so on.
Recent Key Strategies and Developments in Digital Banking Platform Industry
In April 2024, nCino expanded the omnichannel functionality of its consumer banking solution for banks and credit unions. This expansion facilitates bankers to interact with customers about their preferences and needs in the global financial services industry. With the expanded omnichannel functionality, nCino simplified the solution’s multi-product origination experience by generating more intuitive workflows for both in-branch bankers and front-end users.
In February 2024, nCino completed a partnership agreement with the Japanese bank, Saikyo Bank, Ltd., which is likely to enhance nCino‘s operational efficiencies and customer convenience. The adoption of nCino's platform primarily aims to simplify Saikyo's mortgage business, from reception, screening, case management, and electronic contracting to the execution of mortgage loan operations, enabling banks to enhance efficiency and customer experience.
In September 2023, Temenos launched an industry-first secure solution for banks by integrating generative artificial intelligence (AI) to classify customers’ banking transactions automatically. Transaction classification facilitates the bank's delivery of personalized insights and recommendations, offers more retaining and intuitive digital banking experiences, and improves customer loyalty through more relevant products and offers.
Key Sources Referred
Banking Industry Architecture Network (BIAN)
European Fintech Association (EFA)
Financial Data and Technology Association (FDATA)
FinTech Alliance
National Automated Clearing House Association (NACHA)
International Financial Technology Association (IFTA)
Institute of International Finance (IIF)
American Bankers Association (ABA)
Key Benefits for Stakeholders
This report provides a quantitative analysis of the digital banking platform market segments, current trends, estimations, and dynamics of the digital banking platform market analysis from 2024 to 2032 to identify the prevailing digital banking platform market opportunity.
The market research is offered along with information related to key drivers, restraints, and opportunities.
Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
In-depth analysis of the digital banking platform market segmentation assists to determine the prevailing digital banking platform market opportunities.
Major countries in each region are mapped according to their revenue contribution to the global market.
Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
The report includes the analysis of the regional as well as global digital banking platform market trends, key players, market segments, application areas, and market growth strategies.
Digital Banking Platform Market Report Highlights
| Aspects | Details |
 Market Size By 2032 | USD 168.3 Billion |
 Growth Rate | CAGR of 20.9% |
 Forecast period | 2024 - 2032 |
 Report Pages | 250 |
 By Component |
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 By Deployment Model |
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 By Type |
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 By Mode |
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 By Region |
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 Key Market Players | Tata Consultancy Services, Appway, SAP SE, Fiserv, Inc., Vsoft Corporation, nCino Inc., Cor Financial Solution Ltd., Alkami Technology Inc., Edgeverve, Temenos, FIS Global, Finastra, Urban FT Group, Inc., Oracle Corporation, Sopra Banking Software |
A Digital Banking Platform is a technology solution that enables banks and financial institutions to offer online and mobile banking services, including account management, payments, loans, and other financial services.
The total market value of digital banking platform market is $30.4 billion in 2023.
The market value of digital banking platform market in 2032 is $168.3 billion.
The forecast period for digital banking platform market is 2024 to 2032.
The base year is 2023 in digital banking platform market.
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