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Digital Banking platform market to hit $31.3bn by 2033, boosted by cloud computing innovations

By Puja Sharma

July 09, 2024

  • Advanced AI
  • AI Cloud
  • Blockchain

Digital Banking, Mobile Banking, Anna Money, Coconut, CountingUp, Mettle, SumUp, FinTech, UKThe Digital Banking Platform Market is revolutionising the financial services industry by offering innovative, customer-centric solutions. These platforms provide seamless online and mobile banking experiences, integrating advanced technologies like AI, blockchain, and cloud computing.

The Global Digital Banking Platform Market size is expected to reach $11.5 billion by 2024 and is further anticipated to reach $31.3 billion by 2033 according to Dimension Market Research. The market is anticipated to register a CAGR of 11.7% from 2024 to 2033.

Digital banking platforms transform modern banking operations by providing complete online & mobile services, using various financial transactions smoothly. Using biometric authentication, AI, & intuitive interfaces, they give importance to user engagement & security. Unlike standard online banking, they use API integration and automation to improve efficiency and provide a holistic digital banking experience while addressing concerns about data security carefully.

The platform segment is expected to maintain its dominance in the digital banking market in 2024, while services are expected to show significant growth. Fintech emergence has driven tech giants to develop platforms, encouraging banks to pursue digital transformations. Cloud adoption improves customer-centric strategies & lowers entry barriers, supporting new service offerings, as technological development focuses on improving efficiency, compliance, and customer experience in digital banking.

On-premises deployment is set to dominate the digital banking platform market in 2024, as institutions prioritize control and security. Compliance and data privacy concerns drive preference, mainly among larger banks. Further, cloud adoption is expected to grow highly as it plays a major role in inclusive banking initiatives, providing flexibility and scalability to extend services to deprived communities effectively, highlighting its important role in encouraging financial inclusivity and innovation.

Investment banking is projected to dominate the digital banking platform market with a significant 38.9% revenue share in 2024, driving overall market growth. Post-COVID-19 market re-openings have increased activity in this sector, allowing investment banks to use digital solutions for remote operations & client interactions. Further, retail banking anticipates high growth, requiring adaptation to changing consumer preferences & technological developments to remain competitive in the dynamic banking landscape.

Global Digital Banking platform market: Growth drivers & trends

  • Increasing Smartphone Penetration: The expansion of smartphones and internet connectivity across the world has largely expanded the user base for digital banking platforms, driving its market growth. As many individuals gain access to mobile devices, the need for convenient & accessible banking services through digital channels rises.
  • Rising Customer Expectations for Seamless Banking Experience: Consumers largely expect smooth, user-friendly, and customized banking experiences. Digital banking platforms provide features like real-time account access, mobile payments, and personalized financial insights, meeting these changing customer expectations and driving market growth.
  • Cost Reduction for Financial Institutions: Digital banking platforms allow financial institutions to streamline operations, automate processes, and reduce overhead costs associated with traditional brick-and-mortar branches, which impels banks to invest in digital transformation, further fueling market growth.
  • Regulatory Support and Compliance Requirements: Regulatory initiatives focused on promoting digital financial services, improving cybersecurity, and supporting innovation in the banking sector contribute to market growth, as regulatory bodies across the world are highly supporting the adoption of digital banking platforms, creating a favorable environment for market expansion.
  • Emergence of Fintech Startups and Partnerships: The growth of fintech startups specializing in digital banking solutions, along with partnerships between traditional financial institutions & technology firms, drives innovation and market growth. Collaboration allows stakeholders to use advanced digital capabilities, accelerate product development, and improve competitiveness in the evolving financial services landscape.
  • Growing Demand for Contactless Banking Solutions: The growing focus on hygiene and safety, along with changing consumer preferences, has driven the demand for contactless banking solutions. Digital banking platforms provide secure and convenient ways for customers to conduct transactions, manage accounts, and access financial services without physical contact, which is driving market growth as financial institutions give importance to the development of contactless & remote banking capabilities to meet changing customer needs.

Key Insights

  • The Digital Banking Platform Market is expected to grow by $31.3 billion by 2033 from 2025 with a CAGR of 11.7%.
  • Platforms is set to continue its lead in digital banking in 2024, with services poised for growth, as Fintech innovations drive digital transformations, supported by cloud adoption.
  • On-premises deployment is anticipated to lead the digital banking platform market in 2024 for control and security, while cloud adoption promotes financial inclusivity & innovation.
  • Investment banking is projected to lead digital banking with a 38.9% revenue share in 2024, driven by post-COVID market activity. Further, retail banking expects growth, demanding adaptation to stay competitive.
  • Asia Pacific is set to lead with a 31.4% share in 2024 for the digital banking platform market, driven by emerging digital firms, while North America’s tech infrastructure & innovative banking sector contribute to its market growth.

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