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    Digital Banking Market

    ID: MRFR/BFSI/1454-CR
    201 Pages
    Aarti Dhapte
    August 2025

    Digital Banking Market Research Report Information By Banking Type (Retail Banking, Corporate Banking, Investment Banking & Ethical/Socially Responsible Banking), By Solution (Online Banking Platforms, Mobile Banking App, Digital Wallets, Peer-to-Peer (P2P) Payment Apps, Contactless Payments & Others), By Operating Type (International Banking and Domestic Banking), By Deployment (Cloud and On-premises), By Organization Size (SMEs & Large Enterprises) & By Region (North America, Europe, APAC, South America & MEA) –Market F...

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    Digital Banking Market Infographic
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    Digital Banking Market Summary

    As per Market Research Future analysis, the Digital Banking Market was valued at 107.67 USD Billion in 2024 and is projected to grow to 251.36 USD Billion by 2035, with a CAGR of 8.01% from 2025 to 2035. The market is driven by increasing smartphone penetration, improved internet connectivity, and a shift towards contactless payments, alongside regulatory support for fintech innovations.

    Key Market Trends & Highlights

    Key trends driving the Digital Banking Market include technological advancements and changing consumer preferences.

    • Smartphone penetration reached 78% in 2023, with 6.9 billion subscriptions globally.
    • 62% of the world's population had active internet access in 2023, enhancing digital banking capabilities.
    • Contactless payments accounted for over 50% of card transactions in the Euro area in 2022.
    • Over 40 jurisdictions introduced new regulations in 2022 to support fintech innovations.

    Market Size & Forecast

    2024 Market Size USD 107.67 Billion
    2035 Market Size USD 251.36 Billion
    CAGR (2025-2035) 8.01%

    Major Players

    Key players include HSBC, Barclays, UBS, American Express, Bank of America, Deutsche Bank, BMO Financial Group, JPMorgan Chase, Wells Fargo, Goldman Sachs, Capital One, Morgan Stanley, PNC Financial Services, Citigroup, and Santander.

    Digital Banking Market Trends

    AI-DRIVEN AUTOMATION AND PERSONALIZED BANKING SERVICES

    Artificial intelligence (AI) in banking plays a pivotal role by enhancing data analysis, predicting trends and fraud risks, and improving customer engagement. Banks can use AI effectively in five major ways: customizing services and products for individual needs, identifying new business opportunities, predicting and identifying risk and fraud, and streamlining operations. AI can help banks minimize manual errors in data processing, analytics, document processing, onboarding, customer interactions, and other tasks through automation and algorithms. Customers want digital banking experiences: apps where they can learn more information about provided services, interact with people or virtual assistants, and better manage their finances.

    AI-powered chatbots and virtual assistants—like Bank of America's Erica or HDFC Bank's Eva—offer 24/7 support, handling millions of customer queries per month, reducing the burden on human agents while improving response times and customer satisfaction. Almost every popular banks such as Bank of America (Erica), HSBC (Amy), RBC (Nomi), Wells Fargo, Barclays, Lloyds Banking Group, Citi (CitiBot), JP Morgan Chase (COiN), UBS (UBS SmartWealth), Lloyds Bank, Santander (SmartBank), OCBC (Emma), and PNC (Virtual Wallet)  and many others have adopted AI-driven chatbots to provide personalized financial services, manage transactions, offer 24/7 customer support, assist with fraud detection, and deliver financial advice.

    The ongoing evolution of digital banking is reshaping the financial landscape, as consumers increasingly demand seamless and innovative banking experiences that prioritize convenience and security.

    U.S. Department of the Treasury

    Digital Banking Market Drivers

    Technological Advancements

    The Global Digital Banking Market Industry is experiencing rapid transformation due to technological advancements. Innovations such as artificial intelligence, blockchain, and machine learning are reshaping banking operations, enhancing customer experiences, and improving security measures. For instance, AI-driven chatbots are streamlining customer service, while blockchain technology is facilitating secure transactions. As a result, the market is projected to reach 12.2 USD Billion in 2024, reflecting a growing reliance on technology in banking. This trend indicates that financial institutions are increasingly investing in digital solutions to remain competitive and meet evolving consumer expectations.

    Market Segment Insights

    Global Digital Banking By Banking Type Insights

    Based on Banking Type, the Digital Banking Market have been segmented into Retail Banking, Corporate Banking, Investment Banking and Ethical/Socially Responsible Banking. The Retail Banking segment dominated the global market in 2024, while the Investment Banking is projected to be the fastest–growing segment during the forecast period.

    Digital retail banking refers to providing all retail banking services such as account opening (checking, savings and deposits); funds transfers; and loans and bank cards, among others—all in a branchless, online only method. Digital retail banking takes convenience, experience and access to a completely new level by providing integrated account services in an easy to navigate, self-serve manner. retail banking include faster customer acquisition; enhanced customer experience (and hence customer loyalty); faster development and rollout of new and innovative products and services; reduced cost of operations; and less dependence on high cost fixed assets.

    Global Digital Banking By solution Insights

    Based on solution, the Digital Banking Market have been segmented into Online Banking Platforms, Mobile Banking App, Digital Wallets, Peer-to-Peer (P2P) Payment Apps, Contactless Payments and Others. The Online Banking Platforms segment dominated the global market in 2024, while the Mobile Banking App is projected to be the fastest–growing segment during the forecast period.

    Online banking platforms are digital systems that allow users to access and manage their bank accounts and conduct transactions over the internet. They provide a convenient way for individuals and businesses to manage their finances without needing to visit a physical branch. Online banking platforms are digital services offered by banks and financial institutions that allow customers to manage their finances and conduct banking transactions over the internet. These platforms provide access to various features, including checking account balances, transferring funds, paying bills, and accessing account statements, all from a computer or mobile device.

    Global Digital Banking By Operating Type Insights

    Based on Operating Type, the Digital Banking Market have been segmented into International Banking and Domestic Banking. The Domestic Banking segment dominated the global market in 2024, while the Domestic Banking is projected to be the fastest–growing segment during the forecast period.

    Domestic banking refers to banking services and activities conducted within a country's borders, focusing on transactions and financial activities within the local economy. It involves financial institutions, like banks, operating and providing services to individuals and businesses within the country.

    Global Digital Banking By Deployment Model Insights

    Based on Deployment Model, the market is segmented into Cloud and On-premises. The Cloud Based segment dominated the global market in 2024, while the Cloud Based is projected to be the fastest–growing segment during the forecast period

    Cloud Deployment mode plays a transformative role in digital banking by offering scalable, secure, and cost-effective infrastructure that enables financial institutions to innovate rapidly and meet evolving customer expectations. With cloud-based platforms, banks can reduce their dependency on traditional, rigid core systems and instead adopt flexible, modular architectures. 

    This shift allows for faster deployment of digital services like mobile banking apps, real-time payments, digital lending, and personalized customer experiences. Cloud also enhances operational efficiency through automation, AI integration, and real-time data analytics, enabling banks to make smarter decisions and improve risk management.

    Global Digital Banking By Distribution Channel Insights

    Based on Organization Size, the Digital Banking Market have been segmented into SMEs and Large Enterprises. The Large Enterprises segment dominated the global market in 2024, while the SMEs is projected to be the fastest–growing segment during the forecast period.

    Large enterprises are increasingly adopting digital banking solutions to streamline operations, enhance cash flow visibility, and improve financial decision-making across global business units. Unlike retail users or SMEs, large corporations require robust, scalable digital banking platforms that can handle complex needs such as multi-currency treasury management, automated payments, real-time liquidity monitoring, regulatory compliance, and fraud prevention. 

    Modern digital banking services tailored for large enterprises include API-based banking integration, which connects enterprise resource planning (ERP) systems directly with banks to automate transactions and reconciliation in real time. For instance, Citibank’s Treasury and Trade Solutions (TTS) offers a digital banking suite for large corporates, enabling real-time cash positioning, FX hedging, and automated supply chain financing through a unified portal .

    Get more detailed insights about Digital Banking Market Research Report – Forecast till 2035

    Key Companies in the Digital Banking Market market include

    Future Outlook

    Digital Banking Market Future Outlook

    The Global Digital Banking Market is projected to grow at 8.01% CAGR from 2025 to 2035, driven by technological advancements, increased consumer demand, and regulatory support.

    New opportunities lie in:

    • Develop AI-driven personalized banking solutions to enhance customer engagement.
    • Expand digital payment platforms to cater to emerging markets and underserved populations.
    • Leverage blockchain technology for secure and transparent transactions.

    By 2035, the Digital Banking Market is expected to achieve substantial growth, reflecting evolving consumer preferences and technological innovations.

    Market Segmentation

    Regional Outlook

    • {"North America"=>["US"
    • "Canada"]}
    • {"Europe"=>["Germany"
    • "UK"
    • "France"
    • "Russia"
    • "Italy"
    • "Spain"
    • "Rest of Europe"]}
    • {"Asia-Pacific"=>["China"
    • "India"
    • "Japan"
    • "South Korea"
    • "Malaysia"
    • "Thailand"
    • "Indonesia"
    • "Rest of APAC"]}
    • {"South America"=>["Brazil"
    • "Mexico"
    • "Argentina"
    • "Rest of South America"]}
    • {"Middle East"=>["GCC Countries"
    • "South Africa"
    • "Rest of MEA"]}

    Global Digital Banking Regional Outlook

    • {"North America"=>["US"
    • "Canada"]}
    • {"Europe"=>["Germany"
    • "UK"
    • "France"
    • "Russia"
    • "Italy"
    • "Spain"
    • "Rest of Europe"]}
    • {"Asia-Pacific"=>["China"
    • "India"
    • "Japan"
    • "South Korea"
    • "Malaysia"
    • "Thailand"
    • "Indonesia"
    • "Rest of APAC"]}
    • {"South America"=>["Brazil"
    • "Mexico"
    • "Argentina"
    • "Rest of South America"]}
    • {"Middle East"=>["GCC Countries"
    • "South Africa"
    • "Rest of MEA"]}

    Digital Banking Market By Solution Outlook (USD BILLION, 2019-2035)

    • Online Banking Platforms
    • Mobile Banking App
    • Digital Wallets
    • Peer-to-Peer (P2P) Payment Apps
    • Contactless Payments
    • Others
    • Cosmetics & Personal Care
    • Biofuel
    • Organic Fertilizer

    Digital Banking Market By Banking Type Outlook (USD BILLION, 2019-2035)

    • Retail Banking
    • Corporate Banking
    • Investment Banking
    • Ethical/Socially Responsible Banking

    Digital Banking Market By Operating Type Outlook (USD BILLION, 2019-2035)

    • International Banking
    • Domestic Banking

    Digital Banking Market By Deployment Model Outlook (USD BILLION, 2019-2035)

    • Cloud Based
    • On-Premises

    Digital Banking Market By Organization Size Outlook (USD BILLION, 2019-2035)

    • SMEs
    • Large Enterprises

    Report Scope

    Report Attribute/Metric Details
    Market Size 2024 USD 12.16 BILLION
    Market Size 2025 USD 13.36 BILLION
    Market Size 2035 251.36 (Value (USD Billion, volume))
    Compound Annual Growth Rate (CAGR) 8.01% (2025 - 2035)
    Base Year 2024
    Market Forecast Period 2025 - 2035
    Historical Data 2019- 2023
    Market Forecast Units Value (USD Billion, volume)
    Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
    Segments Covered By Banking Type, Solution, Operating Type, Deployment Model , Organization Size
    Geographies Covered North America, Europe, Asia-Pacific, South America, Middle East & Africa.
    Countries Covered The U.S., Canada, Mexico, Germany, U.K., France, Italy, Spain, Russia, Rest of Europe, China, Japan, India, Australia, Indonesia, South Korea, Rest of Asia Pacific, GCC, South Africa, Rest of Middle East & Africa, Brazil, Chile, Rest of South America.
    Key Companies Profiled ALKAMI Technology, Inc, BACKBASE, EDGEVERVE Systems Limited, NCINO, Oracle, Q2 Software, Inc, Temenos, FNZ Group, CREALOGIX Ag, Fiserv, Inc, Jack Henry and Associates, Inc, Fidelity National Information Services, Inc, Candescent, Finastra, Sopra, And Among Others
    Key Market Opportunities Ai-Driven Automation and Personalized Banking Services, Growing Digital Wallets and Embedded Payments
    Key Market Dynamics Increasing Adoption of Smartphones and App Based Banking, Cloud Based Digital Banking

    Market Highlights

    Author
    Aarti Dhapte
    Team Lead - Research

    She holds an experience of about 6+ years in Market Research and Business Consulting, working under the spectrum of Information Communication Technology, Telecommunications and Semiconductor domains. Aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. Her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.

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    FAQs

    How much is the Digital Banking Market?

    The Digital Banking Market size is expected to be valued at USD 40.59 BILLION in 2035.

    What is the growth rate of the Digital Banking Market?

    The global market is projected to grow at a CAGR of 11.8% during the forecast period, 2025-2035.

    Which region held the largest market share in the Digital Banking Market?

    North America had the largest share of the global market.

    Who are the key players in the Digital Banking Market?

    The key players in the market are Astec Industries ALKAMI Technology, Inc, BACKBASE, EDGEVERVE Systems Limited, NCINO, Oracle, Q2 Software, Inc, Temenos, FNZ Group, CREALOGIX Ag, Fiserv, Inc, Jack Henry and Associates, Inc, Fidelity National Information Services, Inc, Candescent, Finastra, Sopra, And Among Others.

    Which By Banking Type led the Digital Banking Market?

    Retail Banking Systems Digital Banking dominated the market in 2024.

    Which By Solution had the largest market share in the Digital Banking Market?

    Online Banking Platforms Segment had the largest revenue share of the global market.

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