Juniper Research reports 53% of the world will use digital banking by 2026

By Joy Dumasia

Juniper Research has found that 53% of the world’s population will access digital banking services in 2026, reaching over 4.2 billion digital banking users from 2.5 billion in 2021. The research identified increased digital transformation efforts as enabling banks to function effectively during the pandemic, justifying the benefits of digital banking and fostering further user growth.

The new research, Digital Banking: Banking-as-a-Service, Market Transformation & Forecasts 2021 2026, identified that China would be the most prominent digital banking market over the next five years, accounting for almost 25% of digital banking users in 2026.

Juniper Research’s Digital Transformation in Banking Readiness Index analysed 30 leading Tier 1 banks on their innovation in terms of digital features, investment and innovation, as well as on their agility in terms of size, profitability and brand strength, to evaluate their digital transformation readiness and highlight their respective positioning.

Bank of America offers an ever-expanding digital platform, including the Erica chatbot, and has recorded significant upticks in digital usage and engagement during the pandemic. JPMorgan Chase has experimented with blockchain and made acquisitions, such as that of wealth manager Nutmeg in the UK, to boost its offerings. HSBC has launched innovative new solutions, such as HSBC Kinetic for small businesses in the UK, with BBVA launching initiatives including cryptocurrency trading and DBS Bank having high levels of digital engagement.

Research co-author Damla Sat noted: “These banks have progressed with well-planned and executed digital transformation strategies, and other banks need to build similarly broad and revolutionary roadmaps or be left behind by more agile competitors.”

Recently, IBS Intelligence reported that A new study from Juniper Research has found that merchant losses to online payment fraud will exceed $206 billion cumulatively for the period between 2021 and 2025. This figure demonstrates why merchants must combat fraud by using machine learning-based fraud prevention platforms as an immediate priority.