Market Size of Digital Banking Platform Industry
Study Period | 2019 - 2029 |
Market Size (2024) | USD 10.14 Billion |
Market Size (2029) | USD 19.56 Billion |
CAGR (2024 - 2029) | 14.04 % |
Fastest Growing Market | Asia-Pacific |
Largest Market | North America |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
Digital Banking Platform Market Analysis
The Digital Banking Platform Market size is estimated at USD 10.14 billion in 2024, and is expected to reach USD 19.56 billion by 2029, growing at a CAGR of 14.04% during the forecast period (2024-2029).
The banking industry is going through a digital transformation quickly, and consumers want smart mobile devices and digital banking services. These are some of the main things that are driving the market's growth.
- The majority of the banks prefer digital banking platforms due to the various benefits offered, such as reduced IT cost, fast time to market, open banking, out-of-the box yet configurable capabilities, omnichannel customer experience, and microservice architecture, to name a few. For example, in December 2022, Deloitte announced a collaboration with AWS to address a chronic difficulty in banking: the transition to digital-first systems that span the client interface to back office operations.
- Though neo-banks are still a niche market, they are witnessing a higher growth rate in terms of market share and serving customers at around one-third of the cost of traditional banks. Fintechs are targeting lucrative niches in the value chain. The big tech players, with their large customer bases, pose a real threat, and a few incumbents are investing heavily in innovation, putting laggards in the shade.
- However, issues such as integrating digital banking platforms with legacy systems, network outages, and security concerns can cause banks severe losses, and thus such factors might hamper the growth of the market.
- As a result of the COVID-19 crisis, there was a rise in online banking activity, such as increased digital transactions, and a decline in trips to brick-and-mortar branches. The pandemic forced individual consumers as well as corporations that once resisted online banking to adopt digital banking apps as their new default. The pandemic resulted in increased convenience among consumers, which might grow demand in the long run. On the vendors part, the majority of the vendors have been concentrating on customer acquisition by providing services demanded by the challenging times.
Digital Banking Platform Industry Segmentation
A traditional bank can become a fully digital bank with the help of a digital banking platform.These platforms help empower bank digitalization in terms of customer focus, internal optimization, and ecosystem readiness, and thus support a bank's long-term digital transformation path through off-the-shelf capabilities and flexible architecture.
The digital banking platform market is segmented by deployment (cloud, on-premises), type (corporate banking, retail banking), and geography (North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa).
The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
Digital Banking Platform Market Size Summary
The digital banking platform market is experiencing significant growth, driven by the rapid digital transformation within the banking industry and the increasing consumer demand for smart mobile devices and digital banking services. Banks are increasingly adopting digital banking platforms due to benefits such as reduced IT costs, faster time to market, and enhanced customer experiences through omnichannel and microservice architectures. The rise of neo-banks and fintechs targeting niche markets further fuels this growth, although challenges like integrating with legacy systems and security concerns persist. The COVID-19 pandemic accelerated the shift towards digital banking, as both consumers and corporations adopted online banking solutions, leading to increased demand for digital banking services.
North America plays a pivotal role in the expansion of the digital banking platform market, with many leading banks and innovative cloud infrastructure providers based in the region. The adoption of blockchain technology to enhance security and the increasing use of cloud-based services are key factors contributing to market growth. The market is becoming more fragmented due to the entry of new companies and solutions, with midsize and smaller firms gaining traction through technological advancements and strategic partnerships. Collaborations, such as those between Axis Bank and OPEN, and Capco and Savana, are helping banks overcome technical challenges and meet evolving customer expectations. The market's growth is further supported by the increasing use of fintech apps and the demand for reliable infrastructure to support real-time payments.
Digital Banking Platform Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Industry Value Chain Analysis
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1.3 Industry Attractiveness - Porter's Five Forces Analysis
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1.3.1 Bargaining Power of Suppliers
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1.3.2 Bargaining Power of Consumers
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1.3.3 Threat of New Entrants
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1.3.4 Threat of Substitutes
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1.3.5 Intensity of Competitive Rivalry
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1.4 Market Drivers
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1.4.1 Increasing Adoption of Cloud-Based Platforms to Obtain Higher Scalability
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1.4.2 Rising demand for smart mobile devices and digital banking services among consumers
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1.5 Market Restraints
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1.5.1 Increasing Security Concerns
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1.6 Assessment of Impact of COVID-19 on the Industry
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2. MARKET SEGMENTATION
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2.1 By Deployment
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2.1.1 Cloud
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2.1.2 On-Premises
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2.2 By Type
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2.2.1 Corporate Banking
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2.2.2 Retail Banking
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2.3 Geography
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2.3.1 North America
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2.3.2 Asia Pacific
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2.3.3 Europe
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2.3.4 Middle East and Africa
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Digital Banking Platform Market Size FAQs
How big is the Digital Banking Platform Market?
The Digital Banking Platform Market size is expected to reach USD 10.14 billion in 2024 and grow at a CAGR of 14.04% to reach USD 19.56 billion by 2029.
What is the current Digital Banking Platform Market size?
In 2024, the Digital Banking Platform Market size is expected to reach USD 10.14 billion.