Dublin, April 07, 2021 (GLOBE NEWSWIRE) – The “Digital Banking Platforms Market – Growth, Trends, COVID-19 Impact and Forecast (2021 – 2026)” report was added to ResearchAndMarkets.com offer.
The digital banking platform market is expected to grow at a CAGR of 11.2% during the forecast period (2021-2026). The rapid evolution of digital transformation in the banking industry, along with the demand for smart mobile devices and digital banking services among consumers, are some of the major factors driving the market growth.
Majority of banks prefer digital banking platforms, due to the various advantages offered, such as lower IT costs, fast time to market, open banking, out-of-the-box but configurable capabilities, customer experience omnichannel and microservices architecture to name a few. . For example, in April 2020, Brattleboro Savings & Loan (BS&L) selected NCR to provide customers and businesses with a superior digital banking experience. With the NCR DI platform, the bank is expected to consolidate three vendors that previously supported digital banking into one, simplifying operations and increasing back office efficiency.
Although neo-banks are still a niche market, they are experiencing a higher growth rate in terms of market share and customer service at around one-third the cost of traditional banks. Fintechs target lucrative niches in the value chain. The big technological players, with their large customer bases, represent a real threat and a few incumbent operators are investing heavily in innovation, putting laggards in the background.
However, issues such as the integration of digital banking platforms with existing systems, network outages, security concerns can lead to heavy losses for banks and hence such factors could hamper the growth of the business. Marlet. For example, in October 2019 alone, Commonwealth Bank, Chime, St George Mobile Bank, Lloyds Bank website, Halifax, Royal Bank of Scotland and some major credit card providers faced challenges. serious network failures resulting in losses. Network outages in banking are considered to be more catastrophic compared to other industries due to which the need for network automation has greater scope in this industry.
As a result of the COVID-19 crisis, there is an increase in online banking activity, such as an increase in digital transactions and a decrease in trips to physical branches. The current pandemic has forced individual consumers as well as businesses that once resisted online banking to embrace digital banking apps as the new default. The pandemic could lead to increased convenience among consumers, which could increase demand in the long run. On the sales side, the majority of salespeople have focused on acquiring customers by providing the services demanded by tough times.
Key market trends
Growing adoption of cloud-based platforms to drive market growth
Cloud technology has dramatically changed the way businesses work in various end-user industries, thanks to cost efficiency and economies of scale. The growing adoption of cloud services around the world is fueling the growth of cloud traffic. According to Cisco Systems, global cloud traffic is expected to reach approximately 14,078 exabytes per year by 2021, up from 3,850 exabytes per year in 2016. In 2019, cloud traffic in North America was approximately 4,860 exabytes per year. , which was for the most part.
Many banks prefer to reduce the cost of the IT infrastructure required for on-premises configuration by taking advantage of cloud-based services, which allow them to deploy new products and rapidly scale infrastructure, to meet customer needs. larger with varied needs at a faster speed, handle rapidly growing payments in real time while ensuring compliance and security standards.
As a subscription fee is paid to a SaaS provider, system maintenance costs and legacy technology issues are reduced. Rather than spending a small fortune on IT, SaaS offers banks the ability to reallocate their budgets so they can focus on innovation, customer satisfaction, and business growth.
Using the cloud has also helped mobile banking platforms deliver a responsive user interface (UI) and support the entire banking journey of the bank’s customers, from onboarding to transactional banking requests, on their mobile devices. Banks are rapidly adopting mobile banking platforms, due to their changing preference for mobile banking.
In addition, the increased adoption of third-party applications for real-time payments, such as Whatsapp Pay, PhonePay, has resulted in increased demand for reliable infrastructure from banks to perform UPI transactions smoothly. For example, Visa recently completed the $ 5.3 billion acquisition of Plaid, a fintech startup that allows apps to easily and instantly connect to customers’ bank accounts. Such technological changes have led to increased demand for cloud infrastructure in the digital banking industry.
North America is expected to hold a significant share
North America has many of the largest banks, which is proving to be a major factor driving the market for digital banking platforms. Digital banking providers in the region are offering software as a service to go digital from legacy systems. For example, Temenos is helping America’s new digital banks get started in 90 days with the most feature-rich and technologically advanced front-to-back SaaS digital banking offering.
With the increasing adoption of blockchain technology that improves security, especially in the BSFI industry, many organizations are adopting digital banking platforms. This factor is fueling market growth in the country. Many companies are developing blockchain-based cloud-based digital banking platforms.
In addition, North America is among the leading innovators and pioneers in cloud adoption. The region boasts of a strong presence of cloud infrastructure providers, which further contributes to the growth of the market.
The steady growth in the use of digital banking platforms has come after a similar increase in the use of fintech apps, which are notably among the fastest growing categories of apps in the United States. Residents of the United States have started to rely even more on their mobile devices while being stuck at home due to the global coronavirus pandemic (COVID-19), which has led to an increase in digital banking services across the country. region.
The market for digital banking platforms is evolving into a fragmented market. This is due to the entry of companies and solutions into the market which creates a very fragmented landscape within the digital banking ecosystem. However, with technological advancements and product innovation, medium to small sized companies are increasing their market presence by securing new contracts and partnerships.
In March 2020, Apex Group Ltd., a well-established financial services provider, announced the launch of its digital banking and integration platform through its subsidiary European Depositary Bank (“EDB”). As stated by the company, the platform will be able to process and open bank accounts in Luxembourg in just five days, subject to the client’s completion of all KYC checks.
In July 2019, Appway announced the launch of Client Update, a solution to help financial institutions deliver personalized, holistic and intelligent management of client updates and account maintenance. This solution complements Appway’s existing offering, which includes Integration for Wealth, Regulatory Reviews for Wealth, Digital Mortgage and Digital Banking Platform.
Reasons to buy this report:
Main topics covered:
1.1 Hypotheses of the study and market definition
1.2 Scope of the study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness – Porter’s Five Forces Analysis
4.3.1 Bargaining power of suppliers
4.3.2 Bargaining power of consumers
4.3.3 Threat of new entrants
4.3.4 Threat of substitutes
4.3.5 Intensity of Competitive Rivalry
4.4 Market drivers
4.4.1 Growing adoption of cloud-based platforms to achieve greater scalability
4.4.2 Growing Demand for Smart Mobile Devices and Digital Banking Services Among Consumers
4.5 Market restrictions
4.5.1 Growing security concerns
4.6 Assessment of the impact of Covid-19 on the industry
5 MARKET SEGMENTATION
5.1 By deployment
5.1.2 On site
5.2 By type
5.2.1 Business banking services
5.2.2 Retail banking
5.3.1 North America
5.3.4 Middle East and Africa
6 COMPETITIVE LANDSCAPE
6.1 Company profiles *
6.1.1 Appway SA
6.1.2 CREALOGIX Holding SA
6.1.3 EdgeVerve Systems Limited
6.1.4 Fiserv, Inc.
6.1.5 Oracle Corporation
6.1.6 SAP SE
6.1.7 Sopra Steria
6.1.8 Tata Consultancy Services Limited
6.1.9 Headquarters of Temenos SA
6.1.10 Worldline SA
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
For more information on this report, visit https://www.researchandmarkets.com/r/ov7r52
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