According to a new market research report “Digital Banking Platforms Market by Component (Platforms and Services), Banking Type (Retail Banking, Corporate Banking, and Investment Banking), Banking Mode (Online Banking and Mobile Banking), Deployment Type, and Region – Global Forecast to 2026″, published by MarketsandMarkets™, the Digital Banking Platforms Market size is expected to grow USD 8.2 billion in 2021 to USD 13.9 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 11.3% during the forecast period.
The Digital Banking Platforms Market is gaining traction due to the increasing adoption of smartphones is contributing to the growth of the Digital Banking Platforms Market. Countries such as India, Indonesia, South Africa, and China have seen high growth in smartphone sales in the last few years. According to the GSM Association (GSMA) Mobile Economy 2020 report, there will be 7.1 billion smartphone connections by 2025 from 5.2 billion in 2019. The adoption rate would increase from 65% to 80% by 2025.
Among the Banking Type segment, Corporate Banking is expected to grow at the highest CAGR during the forecast period. Corporate banking solutions provide banks and corporates with a seamless, connected corporate banking experience and a 360° view of the business. This results in integrating payments, treasury, lending, trade, and supply chain finance, benefiting both customers and corporates. Several organizations are incorporating corporate suites that provide superior features to corporate banks.
The APAC countries have seen a rise in the number of FinTech startups, which has led to the disruption in the Digital Banking Platforms ecosystem. However, to keep up with this rapid pace of advancements, traditional banking firms are undertaking digital transformation projects. There is a huge untapped market for the banking industry in India, China, Bangladesh, and several other countries of APAC; this has proven to be a driver for the growth of banking firms in the region. Hence, this motivates bankers to adopt strategies for the digitalization of their services. With the rise in the number of mobile device users, there is also an increasing use of digital banking technologies and online commerce. These factors together are expected to fuel the growth of the Digital Banking Platforms Market in the region.