Digital-led Consumer Banking Market Size (2021-2031) and Regional Overview
The digital-led consumer banking market size is expected to register a CAGR of 16.2% during 2023–2031. Integration of artificial intelligence (AI) and chatbots is likely to remain a key trend in the market.
Digital-led Consumer Banking Market Analysis
The digital-led consumer banking market includes growth prospects owing to the current market trends and their foreseeable impact during the forecast period. The digital-led consumer banking market is growing due to the rising penetration of smartphones and growing demand for increased consumer convenience, accessibility, and banking options. Technological integration and increasing demand for digital payments provide lucrative opportunities for the digital-led consumer banking market growth.
Digital-led Consumer Banking Market Overview
Digital-led consumer banking refers to the automation of traditional banking services through digital and online platforms. With digital-led consumer banking, customers can manage their accounts without having to visit a physical bank branch. This covers a broad variety of online and mobile application-based tasks like money transfers, check deposits, bill payments, investment management, and loan access. Digital led consumer banking offers convenience, speed, and availability, typically offering services 24/7.
REGIONAL FRAMEWORK
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MARKET PLAYERS
MARKET PLAYERS
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Digital-led Consumer Banking Market Drivers and Opportunities
Growing Demand For Increased Consumer Convenience, Accessibility, And Banking Options to Favor Market
Alternative delivery channels are becoming more and more crucial in today's banking industry due to the growing demand from consumers for greater accessibility, convenience, and banking options. Customers nowadays expect convenience in checking their bank accounts and conducting financial activities at any time, from any location. Financial institutions can meet these needs through three main alternative delivery channels: online, mobile, and UPI banking. Using digital-led consumer banking methods allows customers to receive a more convenient and customized service. For example, mobile banking apps can provide users with personalized product recommendations, rewards for their loyalty, and guidance on creating a budget. Banks may save expenses, increase customer happiness and loyalty, foster long-term partnerships, and increase profitability by implementing digital channels. Thus, growing demand for increased consumer convenience, accessibility, and banking options will drive the market growth.
Increasing Demand For Digital Payments
As more consumers and businesses embrace online shopping, mobile payments, and contactless transactions, the need for secure and convenient banking solutions increases significantly. Moreover, the growing preference for cashless transactions, especially due to the COVID-19 pandemic, has accelerated the adoption of digital payment technologies. Furthermore, the widespread availability of mobile internet connections allows businesses to recognize the importance of offering digital-led consumer banking solutions to cater to diverse customer preferences and increase sales opportunities.
Digital-led Consumer Banking Market Report Segmentation Analysis
Key segments that contributed to the derivation of the digital-led consumer banking market analysis are components and application.
- Based on component, the digital-led consumer banking market is divided into software and services. The software segment held a larger market share in 2023.
- By application, the market is segmented into transactional accounts, savings accounts, debit cards, credit cards, loans, and others. The transactional accounts segment held the largest market share in 2023.
Digital-led Consumer Banking Market Share Analysis by Geography
The geographic scope of the digital-led consumer banking market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.
The North American digital-led consumer banking market is a rapidly growing sector that is driven by technological advancements and the increasing demand for personalized and efficient customer experiences. North America, which includes countries such as the United States and Canada, is known for its strong technological infrastructure and high adoption rates of digital solutions. With the widespread adoption of smartphones and advanced banking infrastructure, consumers are increasingly turning to digital-led consumer banking solutions.
Digital-led Consumer Banking Market Report Scope
Digital-led Consumer Banking Market News and Recent Developments
The digital-led consumer banking market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the digital-led consumer banking market are listed below:
- Nubank marks 100 million-plus digital banking customers. The company announced that it was the first digital banking platform to mark this milestone outside of Asia. (Source: Nubank, Press Release, May 2024)
- NCR Voyix Corporation, a leading global platform and provider of digital commerce solutions for the retail, restaurant, and banking industries, announced that the $8.5 billion-asset Nicolet National Bank (Nicolet Bank) has selected NCR Voyix to enhance and improve its customer experience for digital banking. (Source: NCR Voyix Corporation, Press Release, March 2024)
Digital-led Consumer Banking Market Report Coverage and Deliverables
The “Digital-led Consumer Banking Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Digital-led consumer banking market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- led consumer banking market trends, as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- led consumer banking market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the digital-led consumer banking market
- Detailed company profiles
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
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Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
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to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
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to country scope.
Frequently Asked Questions
The global digital-led consumer banking market is expected to grow at a CAGR of 16.2% during the forecast period 2024 - 2031.
The major factors driving the digital-led consumer banking market are the rising penetration of smartphones and the growing demand for increased consumer convenience, accessibility, and banking options.
The integration of artificial intelligence (AI) and chatbots is anticipated to play a significant role in the global digital-led consumer banking market in the coming years.
The leading players operating in the digital-led consumer banking market are Atom Bank, Babb, Ffrees, I&M Bank Limited, Monzo, N26, Revolut, Starling Bank, Tandem, Bank of America Corporation, Citigroup Inc., HSBC Holdings plc, BNP Paribas, Wells Fargo & Company, Capital One Financial Corporation, Zopa, Finserv Inc, JPMorgan Chase, Finacle, and Temenos.
The report can be delivered in PDF/PPT format; we can also share excel dataset based on the request.
Some of the customization options available based on the request are additional 3–5 company profiles and country-specific analysis of 3–5 countries of your choice. Customizations are to be requested/discussed before making final order confirmation, as our team would review the same and check the feasibility.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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