Global Mobile Banking Market Grows Significantly at a CAGR of 11.70%

Introduction

Mobile banking is a service provided by banks and other financial institutions that enables clients to conduct remote financial transactions using a mobile device. The term for this service is mobile banking. Smartphones and tablets are among the devices utilized in mobile banking. The primary functions of mobile banking are transferring funds between accounts and depositing checks by photographing them. These functions are among the most offered mobile banking services. In addition, it is frequently compatible with iPhone, Android, and other device platforms' applications.

In addition, a mobile device with an internet or data connection is required for mobile banking to function effectively. Access to account balances and inventories of recent transactions, remote check deposits, the transfer of funds between beneficiary accounts, electronic bill payments, peer-to-peer (P2P) payments, and several other payment methods are provided by mobile banking. Access to these capabilities is dependent on the application's made-available features.  

Market Dynamics

Increase in Consumers Demand Drives the Global Market

The growth of the mobile banking market is primarily driven by an increase in consumer demand for self-service, quick assistance, and customization of banking products and services. In addition, banks and other financial institutions are increasing their investments in developing mobile banking applications to accommodate their customers' changing preferences and maintain their market position.

In addition, nearly half of mobile phone users with bank accounts supplement their money management with alternative and primary financial providers. The main reason is that alternative providers have lower fees than traditional financial institutions. This trend is most pronounced among newer generations. As a direct result, financial institutions and banks are beginning to implement fintech innovation through partnership and acquisition.

Integration of Advanced Technologies Creates Tremendous Opportunities

Utilizing cutting-edge technologies such as big data, chatbots, blockchain, and similar solutions enables banks to provide a comprehensive customer experience within the channel. In addition, mobile banking users can set up customized alerts, which help them stay on top of their finances by notifying them of specific expenditures or when their account balances are about to run out. In addition, banks can utilize big data engines to expedite client interactions and mitigate the impact of fraud on risk assessment procedures.

Moreover, only 24% of banking executives cited enhancing the customer experience as the area where technology has the greatest impact, compared to 39% who cited cost reduction. Using cutting-edge technologies, banks can extract and compile vast amounts of consumer data from a variety of sources, such as financial statements, mobile banking history, and social media. In addition, banks can analyze each customer's past behavior, identify patterns, and build a complete account holder profile to provide customized financial products and services via mobile application.

Regional Analysis

North America is the most significant global mobile banking market shareholder and is estimated to exhibit a CAGR of 10.5% over the forecast period. With more than three-fourths of the market share, the United States dominated the North American mobile banking industry, and this trend is anticipated to last during the projection period. However, during the forecast period, the North American mobile banking market is expected to grow quickly in Mexico. New initiatives and increased adoption of mobile banking usage are significant drivers of the mobile banking market growth in North America. For instance, the Spanish banking giant BBVA created its first mobile platform in Mexico to coordinate efforts among employees from Spain, the United States, and Mexico.

Additionally, the Mexican government aids regional banks in growing and assisting the vast majority of unbanked people in the nation. Also, most of Bank of America's banking products and services are used via mobile applications, with roughly 54% of its clients classifying themselves as digitally focused. As a result, these digital experiences have become a key role in the overall brand strategy of the biggest national banks in the U.S.

Europe is anticipated to exhibit a CAGR of 11.3% over the forecast period. As the business is still in its infancy, it is anticipated that the European mobile Banking market will continue to expand. Increased consumer demand for early-stage FinTech businesses, new financial services, and consumer-facing products would fuel European industry expansion. Due to the abundance of small and medium-sized businesses (SMEs) in Europe, it is projected that the mobile banking markets in Germany, France, and the UK will experience rapid growth.

Furthermore, to accommodate consumer demand, banks and other financial institutions are investing heavily and improving mobile banking services. For instance, Orange Bank, a French online bank, offers mobile banking as part of its digital strategy. It includes features like virtual advisors, real-time balances, and other value-added services. Wirecard, a digital payments platform, is the foundation for its mobile banking and payment services.

Key Highlights

• The global mobile banking market was valued at USD 772.96 million in 2022. It is estimated to reach USD 2,092.36 million by 2031, growing at a CAGR of 11.70% during the forecast period (2023–2031).
• Based on the transactions, the global mobile banking market is bifurcated into consumer-to-consumer and consumer-to-business. The consumer-to-business segment dominates the global market and is projected to exhibit a CAGR of 12.4% over the forecast period.
• Based on platforms, the global mobile banking market is divided into Android, iOS, and others. The Android segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 12.0% during the forecast period.
• North America is the most significant global mobile banking market shareholder and is estimated to exhibit a CAGR of 10.5% over the forecast period.

Competitive Players

Competitive Players

The key players in the global mobile banking market are Citigroup Inc., MITSUBISHI UFJ FINANCIAL GROUP, INC., Bank of America Corporation, Credit Agricole, HSBC Holdings plc, Wells Fargo and Company, BNP Paribas, JPMorgan Chase and Co, American Express Company, and Societe Generale Group.

Recent Developments

Market News

• In February 2023, the National Bank of Kuwait launched its new mobile banking application. The application offers a more personalized experience by providing smart design and experience changes, resulting in a host of benefits for customers.
• In January 2023, Yes Bank partnered with Microsoft to develop a next-generation mobile application to provide customers with a personalized banking experience. The app will offer customers services such as shopping, online payments, rewards, customized dashboards, and traditional banking functions.

Segmentation

Global Mobile Banking Market: Segmentation

By Transactions

• Consumer-to-consumer
• Consumer-to-Business

By Platforms

• Android
• IOS
• Others

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA