Major banks are investing in digitalizing their financial offerings to create a distinction from various financial startups and other technology players.

Fremont, CA: With the increasing adoption of online and mobile banking platforms, the digital banking market has significantly grown. The banking organizations are moving towards digital services to deploy their services by teaming up with fintech companies to create customer-centric products and services, offering improved customer experience.

Financial institutions leverage advanced technologies like blockchain and artificial intelligence to gather, report, and study a vast amount of data to collect meaningful insights about customers to meet their needs.

Incorporating these technologies has helped lower operating costs and avoid investing in expensive legacy hardware and software to keep their systems relevant. Banks can also retain customers by providing an enhanced customer experience, personalized services at low costs, and a 360-degree view of their customers.

Market by Services

Banks and consumers are shifting towards digital payment modes as it offers a faster, safer, and convenient transaction modality. As cash and credit cards are gradually becoming outdated, digital transactional services dominate as it offers a faster payment, a strong value proposition for customers, and customer retention.

Market by Type

Over 75 percent share in the digital banking market accounts to retail banking and this growth is credited to the significant adoption of electronic and mobile payment by users. With the change in market dynamics and customer preferences, financial institutions are coming up with business models to address them.

The retail banking sector has also started embracing digital banking as it helps optimize efficiency, offers enhanced banking experience for customers, and reduces cost.

Competitive Market Share

The digital banking market has become significantly competitive because of its presence in multinational companies and fintech startups. These players merge with banking organizations using organic and inorganic strategies to seize the market share and grow their customer base.