Modern customers have high expectations for digital banking, demanding faster and more diverse service options. An omnichannel experience, which allows for flexible services across multiple communication channels, is now a necessity. As technology advances, people’s expectations also rise. Digital banking platforms have emerged as leaders in this technological revolution, offering various financial services. Let’s explore some key statistics that shed light on the future of digital banking.
– In 2021, the digital banking market in the U.S. was valued at $4.3 billion, accounting for a 28.78% share of the global market.
– China is projected to reach a market size of $4.6 billion by 2026, with a compound annual growth rate (CAGR) of 19.9%.
– Japan and Canada are expected to grow at rates of 11% and 13.1%, respectively.
– Germany is projected to grow at a CAGR of approximately 14.5% in Europe, while the rest of the European market is estimated to reach $5.2 billion by 2026.
– India has surpassed the U.S. with approximately 295.5 million digital banking users.
Traditional banks typically require customers to visit physical branches, while online banks operate solely digitally. Online banks offer benefits such as lower fees and higher rates of return due to reduced operational costs. Interestingly, 61% of consumers are likely to switch to a digital-only bank.
Here are some competing statistics regarding traditional and digital banking:
– 77% of consumers rely on traditional banks, while only 57% of consumer funds are kept in physical branches.
– 35% of consumer funds kept in non-traditional accounts are in digital-only banks.
– Satisfaction rates are higher among users of digital-only banks (79%) compared to traditional banks (66%).
Consumer inclination towards digital banking is reshaping the industry. Many banks have reduced their branch staff and even closed branches due to the increasing popularity of digital banking services. However, a significant number of customers still consider having a nearby branch important.
Other key trends in digital banking include:
– The projected growth of digital banking users in the United States to nearly 217 million by 2025.
– 24% of consumers anticipate visiting branches less frequently.
– HSBC Bank in the UK plans to close over 10% of its branches.
– Mobile banking usage saw a 34% increase in 2021 due to the pandemic.
Online banking, accessed through a bank’s website, allows customers to perform various banking operations. Here are some statistics related to online banking:
– Online chat technology, connecting customers to human representatives, has a higher satisfaction rate (66%) compared to AI-powered chatbots (26%).
– A significant percentage of Canadians (77%), US inhabitants (71%), and Spanish customers (69%) use online banking services monthly.
– Ally Bank and Discover Bank are prominent players in the online banking sector.
– 73% of users worldwide utilize online banking monthly, while 59% use mobile banking apps.
Mobile banking, accessed through apps on mobile devices, is growing rapidly. Here are some statistics regarding mobile banking:
– 89% of digital banking users, and 97% of millennials, use mobile devices for banking operations.
– Mobile banking among US bank account holders has increased gradually.
– Mobile banking transactions in Africa surged from $495 billion in 2020 to $701.4 billion in 2021.
– Turkey, Africa, and South Korea have high trust in mobile banking.
However, digital banking is also susceptible to scams and fraud. Here are some relevant statistics:
– The Reserve Bank of India reported bank frauds totaling over 302.5 billion Indian Rupees in 2023.
– Card-related frauds increased by 10% according to JP Morgan’s annual payments fraud survey.
– Cybercriminals use malware and trojans to target users, releasing over 100,000 new trojans in 2021 alone.
– Phishing accounted for 90% of data breaches in 2022.
Overall, digital banking is experiencing significant growth and reshaping the banking industry. With the rise of technology and changing customer expectations, banks must adapt to provide faster and more diverse services across various channels. However, cybersecurity remains a critical concern.