Digital Banking Market Size By Type (Retail Banking, Corporate Banking, Investment Banking), By Service (Transactional [Cash Deposits & Withdrawals, Fund Transfers, Auto-Debit/Auto-Credit Services, Loans], Non-Transactional [Information Security, Risk Man

Digital Banking Market Size By Type (Retail Banking, Corporate Banking, Investment Banking), By Service (Transactional [Cash Deposits & Withdrawals, Fund Transfers, Auto-Debit/Auto-Credit Services, Loans], Non-Transactional [Information Security, Risk Management, Financial Planning, Stock Advisory]), COVID-19 Impact Analysis, Growth Potential, Regional Outlook, Competitive Market Share & Forecast, 2023 - 2032

Digital Banking Market is expected to witness massive growth through 2032, owing to the rising penetration of fintech players in the industry. Besides, the fintech industry is witnessing an upsurge in investments across asset management, lending, insurance, payments, and money transfers, which is slated to have a positive impact on the market landscape through the upcoming years.

In addition, various central governments are incorporating approaches and initiatives to fast-track the fintech industry growth. Most governments are supporting fintech to achieve business goals, including increasing financial inclusion and access, improving efficiency, ensuring stability, and stimulating competition, all of which are expected to accelerate market growth further.

Overall, the digital banking market is categorized into type, service, transactional services, non-transactional services, and region.

Considering the type, the investment banking segment is slated to grow exponentially through 2032. The growth can be credited to the rising adoption of technology and data analysis to understand clients better and find new ways to cross-sell and enhance relationship.

Based on services, the non-transactional services segment is expected to register considerable growth by 2032 end, owing to the rising consumer inclination towards digital and mobile channels. In addition, the burgeoning adoption of numerous non-transactional services, such as account services, customer service, asset management, consultancy, stock advisory, financial planning, and SMS services, are further expected to support the segmental expansion in the future.

By transactional services, the fund transfers segment held over USD 3 trillion market share in 2022 and is expected to demonstrate massive growth through 2032. Online fund transfers are the most widely used transactional services, owing to which digital fund transfers are slated to showcase a massive revolution. In addition, the rising penetration of smartphones and increasing use of mobile payment apps is expected to drive the segmental growth.

In terms of non-transactional services, the financial planning segment is expected to exhibit over 11.5% CAGR during 2023-2032, owing to the rising digitalization and deployment of modern technologies, including AI and big data analytics.

In the regional context, the Latin America digital banking market will register revenues of over USD 690 billion by 2032 as the banks in the region are observing massive digital transformation. In addition, financial institutions are turning to digital banking technologies in place of the traditional core to minimize the effort. Moreover, well-known banks are developing new digital banks and intend to gradually transition consumers away from the current platform, which is expected to positively impact the regional growth through 2032.