Global Digital Banking Market Size, Forecast, and Trend Highlights Over 2025-2037
Digital Banking Market size was valued at USD 120.6 billion in 2024 and is projected to reach USD 360.7 billion by the end of 2037, rising at a CAGR of 10.8% during the forecast period, i.e., 2025-2037. In 2025, the industry size of digital banking is estimated at USD 131.9 billion.
The market’s expansion is favorably impacted by advancements in mobile banking along with the rising consumer demand for personalized banking experiences. The digital banking market operates within a supply chain that is reliant on hardware and software platforms. In 2023, the trade of ICT goods worldwide reached over USD 2.5 trillion signifying a steady flow of components essential for the digital banking sector.
A key indicator of the sector's growth is the inflow of investments. In 2023, the global FinTech R&D surpassed USD 35 billion, highlighting the scope of development of digital banking platforms to significantly improve the end user experience. Moreover, the economic indices of the market highlight an increase in the Producer Price Index (PPI) and the Consumer Price Index (CPI). The table below highlights the changes in PPI and CPI from 2023 to 2024:
|
Year of Analysis |
Index Type |
Change (%) |
Affected Components |
Key Cause of Change |
|
2023–2024 |
CPI (Consumer Price Index) |
4.7% |
Subscription fees, digital wallet usage charges, cross-border remittance costs |
Increased consumer adoption of digital channels and pricing adjustments in cross-border services |
|
2023–2024 |
PPI (Producer Price Index) |
4.4% |
Cloud infrastructure, AI & data analytics platforms, cybersecurity compliance tools |
Rising fintech infrastructure costs, AI implementation in back-end operations |
In terms of the market’s future outlook by the end of 2037, there is expected to be paradigm shift driven by changes in the regulatory ecosystem. Central Bank Digital Currencies (CBDCs) are expected to be a prominent factor in the financial ecosystem whereas new opportunities are set to emergence with the growing adoption of open banking frameworks.
Digital Banking Sector: Growth Drivers and Challenges
Growth Drivers
-
Surge of mobile banking adoption in emerging markets: The rapid digitalization of the BFSI sector in emerging economies is a major driver of the digital banking market. In the APAC region and particularly in expanding economies such as India, Indonesia, Vietnam, etc., the market has experienced substantial growth due to large-scale internet penetration along with the rising adoption of smartphones. In the India market, the popularity of mobile applications such as PhonePe, which reportedly processed over 5 billion UPI transactions in March 2024 bodes well for the increasing preference to digital banking services. Additionally, the lucrative success story in India incentivizes global players to adopt the same markers in other regional markets, by pushing for greater digital literacy and smartphone adoptions, to ensure that digital banking solutions gradually replace the traditional banking methods. Below is a brief analysis highlighting the digital payment growth in emerging economies:
|
Name of the Country |
Name of the Payment Solution |
Measurable Statistics (2024) |
|
India |
UPI |
139 billion transactions |
|
Brazil |
Pix |
42 billion transactions |
|
Indonesia |
QRIS |
USD 2.5 worth of transaction value |
- The rise of open banking and regulatory reforms: The introduction of open banking regulations is a significant factor that has transformed the digital banking landscape. Regulatory frameworks encourage greater collaboration between banks, fintech, and third-party service providers, which bode well for the consumers. In terms of regulatory reforms, the Open Banking Initiative of the UK and the Payment Services Directive 2 of the European Union (EU) Two such regulatory reforms are the Open Banking Initiative of the UK and the Payment Services Directive 2 of the EU has pushed banks to open their payment services and data to licensed third parties. Moreover, in 2023, the European Banking Authority published a study that the open banking adoption in the EU rose by 59% YoY between 2022 to 2023. These trends highlight the scope of the market's growth during the forecast period.
Major Technological Trends in the Digital Banking Market
The digital banking sector’s growth is positively reinforced by the technological advancements, which have assisted in expanding access to end users and improving the quality of customer applications. Additionally, the adoption of zero-trust architectures and neuromorphic chips have bolstered high-performance banking. The geographic adoption has varied across APAC and Europe, due to progressive regulatory frameworks. The table below measures adoption rates of key tech advancements and its impact on the digital banking market:
|
Technology Name |
Year of Peak Adoption |
Adoption Rate (%) |
Notable Use Case / Leading Bank Example |
|
Artificial Intelligence (AI) |
2023 |
67% of global banks |
JPMorgan Chase using AI for customer insights |
|
Blockchain Implementation |
2024 |
41% of global banks |
Santander’s blockchain-based international payments |
|
Biometric Authentication |
2022 |
73% in APAC region banks |
DBS Bank implementing facial and fingerprint ID |
|
Cloud-native Core Banking Systems |
2025 |
56% of North American banks |
Capital One’s cloud-native platform migration |
AI and Machine Learning Impact on the Digital Banking Market
AI and ML’s convergence has emerged as the backbone of the global digital banking market. Due to the substantial improvements in product development, the operational efficiency has improved. With customer expectations rising, the financial institutions are adopting applications that offer personalized experiences to streamline operations. The advent of AI-powered simulators to reduce time-to-market for new financial products, ensuring improved rollouts of new services. The table below highlights case studies of AI and ML’s impact on the digital banking sector:
|
Company |
Integration of AI & Machine Learning |
Outcome |
|
JPMorgan Chase |
AI-driven predictive analytics for personalized financial products |
Reduced product development time by 31%, leading to faster go-to-market strategies. |
|
HSBC |
Machine learning for real-time fraud detection and risk management |
Reduced fraud detection costs by 26% by automating risk assessment. |
|
Barclays |
AI-powered quality control in banking services and customer support automation |
Improved customer experience by 21%, leading to higher satisfaction and retention. |
|
Citigroup |
AI for operational optimization and supply chain management |
Saved $100 million in operational costs by improving logistics efficiency through AI. |
Challenges
-
Balancing personalization with data privacy in digital banking: A major challenge that has continued to plague the global digital banking market is to find the balance between personalized services and data services. With a greater percentage of banks leveraging ML and AI to deliver tailored financial solutions, a vast amount of sensitive customer data is leveraged. Despite the data proving to be prolific in providing custom loans and personalized investment strategies, customers face increasing threats to their data security. Additionally, as digital banking expands, there is poised to be a greater conflict in the management of privacy and personalization.
Digital Banking Market: Key Insights
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
10.8% |
|
Base Year Market Size (2024) |
USD 120.6 billion |
|
Forecast Year Market Size (2037) |
USD 360.7 billion |
|
Regional Scope |
|
Digital Banking Segmentation
Core Banking Solutions (AI-Powered Banking, Mobile Banking, Online Banking)
The AI-powered banking segment in digital banking market is predicted to hold a dominant revenue share of 45.8% throughout the anticipated timeline. The segment’s growth is favorably impacted by the rising demand for personalized and secure banking experiences. The AI-powered banking solutions leverages ML models and advanced algorithms to automate routine tasks such as loan approvals and credit scoring. Another lucrative segment is the increasing usage of AI-powered chatbots and virtual assistants, which have allowed banks to offer 24/7 customer support. Additionally, AI improves the real-time analysis of vast amounts of transactional data, driving smarter decision making. The future of banking solutions is estimated to be driven by AI solutions.
Payments & Money Transfers (Peer-to-Peer Payments, Cross-border Payments)
The peer-to-peer (P2P) payments segment is poised to account for a revenue share of 50.6% during the forecast period. A significant driver of the segment's growth is the surging adoption of P2P platforms such as PayPal, Cash App, Google Pay, and Venmo. These platforms have changed how digital payment are processed as consumers increasingly expect quicker transactions without extra fees. The segment is poised to maintain its growth throughout the forecast period as major players seek to enter the space.
Our in-depth analysis of the global digital banking market includes the following segments:
|
Core Banking Solutions |
|
|
Payments & Money Transfers |
|
|
Banking-as-a-Service |
|
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Customize this ReportDigital Banking Industry: Regional Scope
Asia Pacific Market Forecast:
The APAC digital banking market is estimated to maintain a leading revenue share of 42.4% during the forecast period. APAC’s dominance is attributed to the large-scale proliferation of smartphone and expansion of 5G infrastructure, creating a substantial percentage of end users. The expanding middle class in economies such as China, India, Singapore, etc., is driving the adoption of digital banking solutions. Additionally, the supportive regulatory landscape in APAC is pushing for favorable fintech environments and open banking models.
The India digital banking market is estimated to expand its revenue share by the end of 2037. The market’s major driver is the widespread smartphone penetration along with nationwide initiatives such as Digital India and the Unified Payments Interface (UPI). Due to the large-scale consumer base, the market’s momentum remains strong in India. The UPI transactions YoY have exhibited considerable increase, highlighting the sector’s potential. For instance, in May 2025, the UPI of India processed more than USD 300 billion in transaction value, representing a 5% month-on-month increase from April 2025 and a 23% YoY growth.
North America Market Forecast:
The North America digital banking market is registering the fastest expansion rate, rising at a CAGR of 22.3% during the forecast timeline. A major factor of the growth is due to the high consumer digital literacy in the region along with strong fintech innovation ecosystems. Another trend that supports the regional market's growth is the emergence of BaaS models along with a surging demand for embedded financial solutions by SMEs. As platforms such as Twitch, Mixer, etc., become increasingly popular, the requirement for digital banking services is predicted to exhibit sustained growth throughout the anticipated period.
The U.S. market is estimated to maintain its dominant revenue share in North America. The U.S. market is characterized by the heightened adoption of AI-powered analytics and the expansion of real-time payment infrastructure. Additional drivers include the API ecosystems facilitating open banking, along with the rising consumer preferences for mobile-first banking.
Major Market Players of the Digital Banking Landscape
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The global digital banking market is poised to maintain its growth throughout the forecast period. The sector remains competitive, with established financial institutions as well as emerging fintech players vying to increase their revenue share. Companies such as JP Morgan, HSBC, Citigroup, etc., are leading the revenue share. The table below highlights the major players in the market:
|
Company Name |
Country of Origin |
Revenue Share by % (2024) |
|
JPMorgan Chase & Co. |
USA |
15.8% |
|
Citigroup Inc. |
USA |
12.1% |
|
HSBC Holdings PLC |
UK |
9.1% |
|
Deutsche Bank AG |
Germany |
8.5% |
|
Samsung SDS |
South Korea |
XX% |
|
Nomura Holdings Inc. |
Japan |
XX% |
|
ICICI Bank |
India |
XX% |
|
Australia and New Zealand Banking Group (ANZ) |
Australia |
XX% |
|
Standard Chartered PLC |
UK |
XX% |
|
OCBC Bank |
Singapore |
XX% |
|
Maybank |
Malaysia |
XX% |
|
RBC (Royal Bank of Canada) |
Canada |
XX% |
Below are the areas covered for each company that is a key player in the digital banking market:
In the News
- In February 2024, a new credit assessment tool was launched by the ICICI Bank. The new tool is supported by AI and utilizes machine learning algorithms to analyze consumer data to predict the creditworthiness of clients.
- In January 2024, a new and improved mobile banking platform was announced by JP Morgan Chase. The platform is poised to considerably benefit SMEs through an integrated suite of financial services.
Author Credits: Abhishek Verma
- Report ID: 3408
- Published Date: Jun 04, 2025
- Report Format: PDF, PPT
