Digital Banking Platform Market Size, Share Global Analysis Report, 2024 – 2032

Industry Insights

[220+ Pages Report] According to Facts & Factors, the global digital banking platform market size was valued at USD 22.68 billion in 2023 and is predicted to surpass USD 65.99 billion by the end of 2032. The digital banking platform industry is expected to grow by a CAGR of 12.60% between 2024 and 2032.

Market Overview

Digital banking platforms refer to the technological ecosystem that helps financial organizations provide digital banking services and solutions to their customers. Such platforms offer their services online through different channels like mobile applications.

Also, these banking platforms are built to improve customer experiences and streamline operations. Additionally, there are many web-based platforms that will help customers access their banking services through a laptop, mobile, or desktop browser. These will help people with more tailored financial services based on their preferences and behavior. These platforms facilitate faster transactions, thereby improving customer satisfaction.

Key Insights

• As per the analysis shared by our research analyst, the global digital banking platform market size is estimated to grow annually at a CAGR of around 12.60% over the forecast period (2024-2032).
• In terms of revenue, the global digital banking platform market size was valued at around USD 22.68 billion in 2023 and is projected to reach USD 65.99 billion by 2032.
• Rising digital adoption is driving the growth of the global digital banking platform market.
• Based on the components, the services segment is growing at a high rate and is projected to dominate the global market.
• Based on services, the professional services segment is anticipated to grow with the highest CAGR in the global market.
• Based on the deployment types, the on-premises segment is projected to swipe the largest market share.
• Based on banking types, the retail banking segment is expected to dominate the global market.
• Based on subscription types, the mapping & visualization tools segment is anticipated to witness significant developments in the global market.
• Based on region, North America is expected to dominate the global market during the forecast period.

Growth Drivers

• Rising digital adoption is driving the growth of the global market.

The increasing number of people are adopting digital channels like mobile banking or online services, which in turn is a major reason for the high growth rate of the global digital banking platform market. Digital banking services are more convenient and appealing to consumers because of the growing tech-savvy population.

Also, the growing use of mobile phones and the Internet is making digital banking easier. Investments in emerging technologies like machine learning and artificial intelligence are also likely to fuel the growth of the industry. These advancements are expected to revolutionize the banking sector with virtual assistance and chatbots to offer quicker and improved services to customers.

Big data analytics helps organizations get deep insights into customer behavior and their financial patterns, thereby enabling them to offer more tailored and personalized services and get high engagement rates. The rising online transactions and e-commerce sector is further expected to support the growth of the industry.

However, digital banking solutions help organizations manage and securely process transactions. Digital wallets are becoming more common among consumers and are expected to support the growth trajectory of the industry. For instance, Temenos successfully collaborated with UBL in 2021 to offer next-generation digital banking solutions. Also, digital transformation will help many products and channels for the international and domestic markets.

Restraints

• Cybersecurity threat is likely to hamper the growth of the global market.

Ongoing incidences of cyberattacks and data breaches are likely to hinder the growth of the digital banking platform industry. Digital banking platforms are more prone to fraud and scams, which further limits users from using these digital solutions.

Opportunities

• Operational benefits are expected to foster growth opportunities in the global market.

Automation has helped financial organizations streamline their workflow and improve efficiency. Financial organizations can automate repetitive tasks by eliminating any downtime. Also, digital banking platforms are more cost-effective than the traditional way of physically visiting the branch and executing all the processes, as it is a time-consuming and costly method. The ongoing fintech innovations are likely to drive the growth of the industry. New developments like unique features and services to meet the customer's requirements are expected to revolutionize the global digital banking platform market.

Many governments are also supporting digital banking solutions by implementing favorable policies and regulatory frameworks. For instance, TCS came up with TCS BaNCS Cloud in 2021 for Asset Servicing. It helps in automating the required services for all markets and target audiences.

Challenges

• Technological errors are a big challenge in the global market.

It is becoming more difficult for financial organizations to keep up with the rapid technological advancements in the digital banking sector. Incorporating new technologies and aligning with new trends involves high costs and skilled personnel, which is likely to be a big challenge in the digital banking platform industry.

Segmentation Analysis

The global digital banking platform market can be segmented into components, services, deployment types, banking types, and regions.

On the basis of components, the market can be segmented into platforms and services. The services segment accounts for the largest share of the digital banking platform industry during the forecast period. One of the major factors for the growth of the segment is the complexity of digital banking solutions. Integrating modern digital banking solutions with the legacy framework requires professional services.

Also, organizations are paying growing attention to enhancing security and compliance. Therefore, there is a requirement for services that can help these organizations with data protection laws and financial regulations. Also, the ongoing cyber breach incidences and cyberattacks are further encouraging these platforms to adopt security services to protect their organizations.

Additionally, there is a requirement for ongoing support like technical support, maintenance support, performance optimization support, and many others to maintain the operational efficiency of the organization. Also, the fast-expanding digital ecosystem is launching new digital products, which is further fueling demand for specialized services.

On the basis of services, the market can be segmented into managed services and professional services. The professional services segment is expected to witness heavy growth during the forecast period. Financial institutions adopt new digital banking platforms, and therefore, there is a high requirement for professional services to ensure seamless integration. Professional services are required to customize the digital banking platform according to their requirements and infrastructure.

However, professional services help organizations improve their overall user experience by optimizing their infrastructure and its processes. Professional services are needed in cases of troubleshooting in order to resolve queries promptly and reduce operational disruptions and downtime.

However, advancements in emerging technologies like machine learning, AI, and blockchain are further helping these organizations adopt professional services to keep up with the competitive market and stay updated with the latest trends.

On the basis of deployment types, the market can be segmented into cloud and on-premises. On-premise is the fastest-growing segment in the global digital banking platform market. The on-premise model helps organizations get more control over their data and infrastructure, as all the information is stored within the organization.

Also, organizations can pose a demand for more customized on-premise solutions that can align with their requirements and infrastructure types. Many regions have different data protection regulations, and therefore, there is more demand for customized on-premise solutions to help organizations comply with the required regulatory compliances. Also, on-premise platforms provide better control over management and operational practices.

On the basis of banking type, the market can be segmented into investment banking, corporate banking, and retail banking. Retail banking is likely to dominate the global digital banking platform market during the forecast period. Retail banking offers high convenience and better accessibility of banking services to consumers, which is another major factor in the high growth rate of the segment. Banking platforms are using personalization to engage the customer with their products and services.

Moreover, the fast expansion of digital banking channels like mobile solutions is further expected to fuel the growth of the segment. Also, digital platforms are automating repetitive banking processes, thereby improving the speed of customer services.

Report Scope

Regional Analysis

• North America to dominate the global market.

North America will account for the largest share of the global digital banking platform market during the period. Its growth can largely be attributed to the rising adoption of digital banking solutions by consumers. The region has a large tech-savvy population, which is posing a huge demand for accessible, convenient, and more personalized banking experiences.

Moreover, the region is witnessing an increasing number of fintech companies, which is pushing traditional banks to adopt advanced technologies. Banks are also adopting innovative digital solutions to gain a competitive edge in the market. Services like chatbots, mobile bank apps, personalized investment advice, and many others are the result of digital banking solutions.

Asia Pacific is also anticipated to witness significant growth in the digital banking platform industry in the coming years. APAC is likely to see a boom in digital banking in the coming years, largely because of the growing demand for digital banking by both financial institutions and consumers.

High penetration rates of smartphones and internet in underserved and remote areas are further expected to widen the scope of the regional market. The ongoing technological advancements like machine learning, blockchain, AI, and data analytics are expected to positively impact the growth of the regional market.

The governments in APAC are also paving the way for a favorable environment to help digital banking platforms and fintech companies flourish. High economic growth in developing countries like India, China, and Japan is also expected to revolutionize the market. Changing consumer preferences in APAC because of rapid urbanization and industrialization is posing a huge demand for digital banking services, which is likely to further contribute immensely towards the growth of the regional market. For instance, Finastra partnered with Salt Edge in 2021 to help easily comply with PSD2 and other regulations regarding open banking standards for banks.

Competitive Analysis

The key players in the global digital banking platform market include:

• Worldline
• Velmie
• TPS
• Temenos
• Technisys
• Sopra Banking Software
• SAP
• Oracle
• NETinfo
• NCR
• nCino
• MuleSoft
• Mambu
• Design Arena
• Fiserv
• Finastra
• ebankIT
• EdgeVerve
• BNY Mellon
• Backbase
• Appway
• Aperture
• Alkami

For instance, Finastra successfully partnered with Microsoft for the multiyear cloud to speed up the digital transformation of financial services. These companies are expected to offer businesses and customers various services that are ideal for the lives of the customers.

The global digital banking platform market is segmented as follows:

By Components Segment Analysis

• Platforms
• Services

By Services Segment Analysis

• Managed Services
• Professional Services

By Deployment Types Segment Analysis

• Cloud
• On-Premises

By Banking Types Segment Analysis

• Investment Banking
• Corporate Banking
• Retail Banking

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America