Online Banking Market Outlook - 2027
The global online banking market size was valued at $11.43 billion in 2019 and is projected to reach $31.81 billion by 2027, growing at a CAGR of 13.6% from 2020 to 2027.
Online banking is an electronic payment system, which allows the user to conduct financial transactions via the internet. In addition, it is also known as internet banking or web banking, and is designed to be convenient, thereby providing time-saving banking experience and real-time problem resolution services. However, banks should aim to provide more seamless experience between online & mobile channels and accelerate customer engagement to meet their demand, needs, & preferences.
With changing consumer demands, lifestyle, and expectations toward banking, the banks are largely switching toward internet or digitalized banking by implementing technologies. In addition, cloud computing, application programming interfaces (APIs), robotic process automation (RPA), chatbots, machine learning, and blockchain are the major technologies that accelerate the online banking market growth. Moreover, real-time payment solutions, convenience, & easier options to access online banking and increased usage of smartphones drive the growth of the online banking market opportunity.
However, security & technical issues, privacy concerns, and transaction difficulties are some of the factors that hamper the market growth. Moreover, countries, such as China, India, Japan, and Australia, have high demand for massive internet usage to avail banking services online. As a result, this is expected to provide lucrative opportunities to the market growth in the coming years.
The payments segment dominated the online banking industry in 2019 and is projected to maintain its dominance during the online banking market forecast period. Due to huge number of consumers shifting towards online payment platforms, as it provides more convenience and time-saving features as compared to the conventional methods of payments in the online banking market outlook.
The report focuses on growth prospects, restraints, and trends of the market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the online banking market.
Segment Review
The online banking market is segmented on the basis of service type, banking type, and region. By service type, it is classified into payments, processing services, customer & channel management, wealth management, and others. In terms of banking type, it is divided into retail banking, corporate banking, and investment banking. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players profiled in the online banking market analysis include ACI Worldwide, Inc., Capital Banking Solution, CGI Inc., COR Financial Solutions Limited, EdgeVerve Systems Limited, Fiserv, Inc., Microsoft, Oracle, Tata Consultancy Services Limited, and Temenos Headquarters SA. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
By Service
Wealth management is projected as one of the most lucrative segments.
Top impacting factors
Increased smartphone usage & internet penetration
With increase in emphasis on smartphone usage and massive internet penetration across several countries, the demand for online banking is continuing to rise, and is expected to maintain its dominance in the market. In addition, customers are using online banking more frequently as banks are providing real-time payment solutions, allowing regular banking transactions online, features of bill payments, and others. Furthermore, the banking industry has witnessed massive expansion & standardization in terms of products & services offered via mobile application and increased brand loyalty among consumers, thereby propelling the online banking market growth.
By Banking Type
Retail Banking accounted for the largest market share in 2019.
Convenience and better rates of interest
With providing convenience & easier options to access online banking products & services, the high yield interest rate is becoming the prime factor for the market growth. In addition, there are no branches to maintain in online banking and other operational costs are declined eventually, which further improve its cost efficiency in business operations. Therefore, banks provide saving options with better rate of interest to their customers due to reduction in these added expenses. Furthermore, consumers use online banking without purchasing any software device, storage or backup data as all transaction information is stored at the bank’s terminal. As result, these factors are making it more convenient for consumers to use online banking, thereby driving the online banking market growth.
Innovative banking services and increase in corporate investors
Rise in digitalization and increase in corporate banking are expected to propel the market growth. Moreover, online banking has enabled investors to keep a real-time track of their investment portfolio while invest or trade online with a continuous access to their funds. Therefore, these online banking features are expected to accelerate the online banking market growth and enhance innovative banking services for increase in corporate investors in the near future. Furthermore, increased corporate investors and expansion of online banking services are expected to provide lucrative opportunities to the online banking market in the coming years.
By Region
Asia-Pacific would exhibit the highest CAGR of 15.2% during 2020-2027.
Report Coverage & Deliverables
Type Insights:
The online banking market encompasses a range of online banking services, including digital account management, mobile deposits, online transfers, and investment services. These services cater to the evolving needs of consumers who seek convenient, secure, and accessible banking solutions, driving the growth and diversification of the online banking market.
Technology Insights:
The online banking growth is propelled by technological advancements such as blockchain, artificial intelligence, and advanced cybersecurity measures. Innovations in these areas are enhancing the functionality, security, and efficiency of online banking platforms, contributing to their widespread adoption and expansion.
Application Insights:
The online banking market share is influenced by various applications within the financial sector, including personal banking, business banking, and digital wallets. Each application segment reflects a different aspect of consumer behavior and financial needs, with personal banking dominating the market due to its broad user base and frequent transactions.
Regional Insights:
The online banking value varies by region, with North America and Europe leading due to their established financial infrastructure and high digital adoption rates. Meanwhile, the Asia-Pacific region is experiencing rapid growth in online banking value, driven by increasing smartphone penetration and digital financial inclusion efforts.
Key Companies & Market Share Insights:
Major players in the online banking market include JPMorgan Chase, Bank of America, and Wells Fargo, which hold significant market shares due to their extensive digital banking services and strong customer bases. Additionally, fintech companies like Revolut and N26 are capturing market share through innovative, user-friendly platforms, further shaping the competitive landscape of the online banking sector.
Key Benefits for Stakeholders
- The study provides in-depth analysis of the online banking market share along with the current & future trends to explain the imminent investment pockets.
- The key drivers, restrains, & opportunities and their impact analysis on the online banking market size are provided in the report.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the industry.
- An extensive analysis of the key segments of the industry helps to understand the online banking market trends.
- The quantitative analysis of the global online banking market from 2020 to 2027 is provided to determine the market potential.
Online Banking Market Report Highlights
| Aspects | Details |
 By SERVICE TYPE |
|
 By BANKING TYPE |
|
 By Region |
|
 Key Market Players | CGI INC, MICROSOFT, CAPITAL BANKING SOLUTION, COR FINANCIAL SOLUTIONS LIMITED, TEMENOS HEADQUARTERS SA, FISERV, INC, ORACLE, TATA CONSULTANCY SERVICES LIMITED, ACI WORLDWIDE, INC, EDGEVERVE SYSTEMS LIMITED |
Analyst Review
The advent of online banking system has revolutionized the banking segment, which is witnessing rapid change in trends, such as executing online financial transactions via online platforms, including account-to-account transfers, payment of utility bills, and settlement of business-to-business fund claims. Moreover, millennials are largely using online banking due to convenience & easier options, real-time payment solutions, allowing regular banking transactions online, and others.
The online banking industry has recorded continuous investments for its developments and has become a massive contributor to the economic growth. Moreover, due to the COVID-19 pandemic situation, the market is anticipated to witness significant growth rate and gain profit by the third quarter of 2022. This is attributed to higher demand for online banking services and increased usage of digitalized platforms in the market. Consequently, online banking is witnessing increased adoption, owing to high penetration of internet and extensive use of smartphones, further propelling the market growth.
The online banking market is saturated with the presence of regional vendors. Some of the key vendors include ACI Worldwide, Inc., Capital Banking Solution, and Temenos Headquarters SA. In 2019, North America dominated the online banking market, in terms of revenue, and is expected to retain dominance over the forecast period. Furthermore, the online banking market is increasingly expanding mainly in countries, such as China, Australia, Japan, India, Indonesia, New Zealand, and Singapore, with high GDP growth and rise in per capita income. Some of the key players profiled in the report include CGI Inc., COR Financial Solutions Limited, EdgeVerve Systems Limited, Fiserv, Inc., Microsoft, Oracle, and Tata Consultancy Services Limited. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
The market share is 13.6% from 2020 to 2027.
The increase in number of internet users, growing customer convenience and better rates of interest are driving the online banking market growth.
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The potential customers of online banking are individuals, corporates, and others.
Microsoft Corporation , Fiserv, Inc. , ACI Worldwide , and Infosys Limited are the leading players in online banking market
On the basis of top growing big corporations, we select top 10 players.
North America and Aisa-Pacific will provide more business opportunities for online banking in future.
The solutions of online banking industry are payments, processing services, customer and channel management, risk management, and others.
The key growth strategies of online banking market players are merger and acquisition, product launch, and joint-venture.
The online banking market is expected to reach $31.81 billion by 2027
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