Digital Banking Platform Trends and Forecast
The future of the global digital banking platform market looks promising with opportunities in the retail banking, corporate banking, and investment banking markets. The global digital banking platform market is expected to reach an estimated $19.1 billion by 2030 with a CAGR of 11.5% from 2024 to 2030. The major drivers for this market are increasing demand among banks for delivering enhanced customer experience and rising adoption of cloud-based solutions by financial institutions.
Lucintel forecasts that platform is expected to witness higher growth over the forecast period as it provides a diverse range of products, including commercial accounts, retail accounts, mobile banking, investment services, real-time transactions, and financial management tools.
Within this market, retail banking will remain the largest segment.
APAC is expected to witness the highest growth over the forecast period due to growing adoption of advanced analytics technologies and entrance of new players in the market.
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Emerging Trends in the Digital Banking Platform Market
The emerging trends in the market of the digital banking platform are altering the provision of financial services today and into the future due to the technological advancement as well as enhancement of customer interactions.
• Artificial Intelligence and Machine Learning: Application of AI intelligence and machine learning to enhance customer individualized banking experiences, fraud management systems, and client assistance.
• Open Banking: The rise of these third party providers who offer financial products and or services as a result of growth in open banking initiatives.
• Blockchain Integration: Increase in the use of blockchain technology particularly for banking transactions that are safe, and all activities involved are accurate and transparent.
• Mobile-First Solutions: An increase in the uptake of mobile banking solutions which have better apps functionality and design.
• Biometric Authentication: Increasing use of biometric forms like facial recognition and fingerprint as means of security access.
The noted dimensions on the markets of the digital banking platform such as integration of AI, utilization of open banking systems, and blockchain encourage innovation and changes in the environment of financial services provision.
Recent Developments in the Digital Banking Platform Market
Changes and advancements in the market of digital banking platforms give emphasis on the changes in technology and changes in customers’ and regulators’ needs.
• Technological Advancements: AI, machine learning and blockchain technologies use to facilitate the provision of banking services and enhance security.
• Enhanced User Experience: Making better and more intuitive mobile applications to assure users stay connected with the services.
• Regulatory Changes: New regulatory policies such as the introduction of PSD2 in Europe, facilitating open banking and more transparency.
• Neobank Growth: Growth of digital bank services alone and competitors in the traditional sense of the word.
• Integration with Fintech: Traditional financial services providers are now working more with financial technology companies to foster innovation and extend their range of services.
• Cyber Security Enhancements: Important level of protection was brought to compare with previous PEP implementations.
The evolution of the digital banking platform market in recent years is mainly focused on the technological evolution, changes in the regulation, and expanding the neobanks, which changes the way of banking and increases safety.
Strategic Growth Opportunities for Digital Banking Platform Market
The advancement of the digital banking platform market depicts the emergence of strategic growth opportunities in key applications which stimulate the market growth.
• Financial Inclusion: Digital banking is looking for ways of reaching out to the shy and distant, enabling acceptance.
• Personalized Banking: The use of information technology and big data management in providing personalized financial products and services as per the requirement of the clients.
• Mobile Banking: Innovation of new mobile banking applications with added value features to meet the needs of the rising number of mobile users.
• Real-Time Payments: Creating a fast payment solution that executes transactions on demand without waiting periods.
• Regulatory Compliance: Developing solutions for the appropriate management of advocacy or compliance with the international regulations that create assurance with security.
• Blockchain Solutions: Implementing the use of blockchain to enhance transparency and security in transacting and offering services in finance.
Strategic growth opportunities in the digital banking platform market revolve around the ability of the each service offered to include the unbanked population,bend over backward with the message of the individualization and utilize the real-time transfer of money rather than using old systems which expands opportunities for business growth.
Digital Banking Platform Market Driver and Challenges
The market of digital banking platforms has plenty of factors responsible for its expansion as well as several challenges.
The factors responsible for driving the digital banking platform market include:
1. Technological Advancement: Application of innovative technologies such as AI, blockchain, cloud etc. provides enormous improvement in banking services along with better security.
2. Consumer Demand: Increasing popularity of mobile-first and on-demand customized banking services.
3. Regulatory Support: Supportive regulatory framework to open up portals for innovation.
4. Financial Inclusion: Initiatives aimed at helping the unbanked populations including remote regions.
5. Cost Efficiency: Providing digital solutions has also led to reducing costs and increasing the efficiency of the operations of their clients which are banks.
Challenges in the digital banking platform market are:
1. Cyber Security Risks: The same way there are risks that come along with internet use, trust issues arises in conjunction with data breaches and fraud.
2. Regulatory Compliance: Issues concerning cross-jurisdictional legal strategies compliance enhancement in individual countries.
3. Technological Integration: Issues which involve fusion and interfacing of new and existing systems.
4. Customer Trust: It means the confidence of the consumer in the ability of the system to protect them from unauthorized access while carrying out banking agreements.
5. Market Competition: Existing in the world with advanced technology and competition coming from Fintech companies and Neo banks with cost benefits effecting the pricing strategies.
• Digital Divide: Examining equity and disparities in the appropriation of access to service by key populations of the cantons of interest.
The advancement of technologies, rising demand for services, and regulation are the reasons driving the growth of the digital banking platform market but at the same time market competition, compliance, and cyber security are among the threats that cause a hindrance in terms of growth and development of the industry.
List of Digital Banking Platform Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies digital banking platform companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the digital banking platform companies profiled in this report include-
• Alkami
• Apiture
• Appway
• Backbase
• BNY Mellon
• CR2
• EdgeVerve
Digital Banking Platform by Segment
The study includes a forecast for the global digital banking platform by component, deployment type, banking type, banking mode, and region.
Digital Banking Platform Market by Component [Analysis by Value from 2018 to 2030]:
• Platforms
• Services
Digital Banking Platform Market by Deployment Type [Analysis by Value from 2018 to 2030]:
• On-premises
• Cloud
Digital Banking Platform Market by Banking Type [Analysis by Value from 2018 to 2030]:
• Retail Banking
• Corporate Banking
• Investment Banking
Digital Banking Platform Market by Banking Mode [Analysis by Value from 2018 to 2030]:
• Online Banking
• Mobile Banking
Digital Banking Platform Market by Region [Analysis by Value from 2018 to 2030]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the Digital Banking Platform Market
Industry participants are pursuing acquisitions and entering into agreements to enhance their operational might. The content that follows depicts how some of the significant developments on the part of the countries specifically USA, China, India, and Japan have been made by the digital banking platform providers.
• USA: The USA has a digital banking platform industry that is technologically driven providing the user with a delightful experience as it has been able to invest a lot of their resources towards its development. Other notable trends include the emergence of neobanks and fintech that present a challenge to normal banking because it is complete digital banking in nature. Participants are improving their Brand-Aware platforms with AI and machine learning on top of financial consultants, fraud detection systems. In addition, there is also a trend in any company to utilize blockchain technology to provide safety and protection for the clients and secure transactions. Additionally, the environment is also changing with the advancement of new regulatory frameworks regarding how data privacy and cybersecurity should be attained which demonstrates how critical protecting information in the today’s economy is.
• China: The mobile penetration and acceptance of technology has led to the fast growth of the market in platform for digital banking in China. Recent trends involve expansion of the digital banking space by the already established companies like Alibaba and Tencent who are already in different industries. There is an intense effort to enhance the personalization of financial products through the use of the artificial intelligence or the big data analytics tools in order to better address customers’ needs. In addition to that, policies were also stated by the Chinese authorities making way for digital banking services in the industry encouraging more novel ideas to come.
• India: The digital banking platform market in India is growing with a focus on mobile services and inclusion of unbanked members. In terms of recent developments, more traditional organizations are embracing digital banking or new upstarts are doing the same and providing something new. Many factors cannot be ignored such as the new encodings and ideas like the Digital India program or establishing the UPI by the Indian government stand to boost the rise of the digital banking sector due to easy and effective transactions. Enough attention is therefore focused on increasing data security in order to protect consumers against fraud and loss of information which are on the rise due to increased digital transactions.
• Japan: JapanÄX%$%Xs digital banking platforms have gained market traction thanks to penetration of cutting edge technological advancements, and most importantly the provision of a highly interactive customer interface. One of the recent developments in this sector has been the utilization of blockchain and AI technologies to enhance security of the transactions and offering more customized service. There is a noticeable trend where the Japanese banks are aiming at creating more and more convenience to their customers by increasing the ease of use of their digital platforms and improving mobile banking.
Features of the Global Digital Banking Platform Market
Market Size Estimates: Digital banking platform market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2018 to 2023) and forecast (2024 to 2030) by various segments and regions.
Segmentation Analysis: Digital banking platform market size by various segments, such as by component, deployment type, banking type, banking mode, and region in terms of value ($B).
Regional Analysis: Digital banking platform market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different components, deployment types, banking types, banking modes, and regions for the digital banking platform market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the digital banking platform market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What is the digital banking platform market size?
Answer: The global digital banking platform market is expected to reach an estimated $19.1 billion by 2030.
Q2. What is the growth forecast for digital banking platform market?
Answer: The global digital banking platform market is expected to grow with a CAGR of 11.5% from 2024 to 2030.
Q3. What are the major drivers influencing the growth of the digital banking platform market?
Answer: The major drivers for this market are increasing demand among banks for delivering enhanced customer experience and rising adoption of cloud-based solutions by financial institutions.
Q4. What are the major segments for digital banking platform market?
Answer: The future of the digital banking platform market looks promising with opportunities in the retail banking, corporate banking, and investment banking markets.
Q5. Who are the key digital banking platform market companies?
Answer: Some of the key digital banking platform companies are as follows:
• Alkami
• Apiture
• Appway
• Backbase
• BNY Mellon
• CR2
• EdgeVerve
Q6. Which digital banking platform market segment will be the largest in future?
Answer: Lucintel forecasts that platform is expected to witness higher growth over the forecast period as it provides a diverse range of products, including commercial accounts, retail accounts, mobile banking, investment services, real-time transactions, and financial management tools.
Q7. In digital banking platform market, which region is expected to be the largest in next 5 years?
Answer: APAC is expected to witness the highest growth over the forecast period due to growing adoption of advanced analytics technologies and entrance of new players in the market.
Q.8 Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the digital banking platform market by component (platforms and services), deployment type (on-premises and cloud), banking type (retail banking, corporate banking, and investment banking), banking mode (online banking and mobile banking), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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