The “Digital Banking Platform Market – Growth, Trends, COVID-19 Impact, and Forecasts (2021 – 2026)” report has been added to ResearchAndMarkets.com’s offering.
The Digital Banking Platform Market is expected to grow at a CAGR of 11.2% during the forecast period (2021 – 2026). The rapidly evolving digital transformation in the banking industry, as well as the demand for smart mobile devices and digital banking services among consumers, are some of the major factors driving the growth of the market.
Key Market Trends
Increasing Adoption of Cloud-Based Platforms to Boost the Market Growth
Cloud technology has significantly changed the way businesses work across various end-user industries, driven by cost efficiencies and economies of scale. The rising adoption of cloud services across the world is fueling the growth in cloud traffic growth. According to Cisco Systems, the global cloud traffic is expected to grow to approximately 14,078 exabytes per year by 2021, as compared to 3,850 exabytes per year in 2016. In 2019, cloud traffic in North America amounted to about 4,860 exabytes per year, which accounted for the largest share.
Many banks prefer cutting the IT infrastructure cost needed for on-Premise setup by leveraging cloud-based services, which enable them to deploy new products and scale infrastructure quickly, cater to the broader customer base with varied needs at a faster speed, manage rapidly increasing real-time payments while ensuring compliance and security standards.
As a subscription fee is made to a SaaS provider, system maintenance costs and legacy technology issues are reduced. Rather than spending a small fortune on IT, SaaS provides banks with the ability to reallocate budgets so they can focus on innovation, customer satisfaction, and business growth.
The use of cloud has also helped mobile banking platforms offer a responsive User Interface (UI) and support the bank customers’ entire banking journey, right from onboarding to transactional banking requests, on their mobile devices. Banks are rapidly adopting mobile banking platforms, owing to their changing preference toward mobile banking.
Moreover, increased adoption of third party applications for real-time payments such as Whatsapp Pay, PhonePay, has led to increased demand for reliable infrastructure by the banks to carry out UPI transactions smoothly. For instance, Visa recently completed a $5.3 Billion acquisition of Plaid, a fintech startup that allows applications to connect with customers’ bank accounts easily and instantly. Technological shifts such as these have led to increased demand for cloud infrastructure in the digital banking industry.
North America is Expected to Hold Major Share
North America has many of the largest banks, which proves to be a major factor driving the market for digital banking platforms. Digital banking vendors in the region are offering software as a service in order to make the transformation from legacy…