Online banking is feature banks supply to manage bank accounts over the internet using a computer or mobile device. It provides online account statements, funds transfer & payments, deposit & processing services, merchant & utility bill payments, and others. Online banking has been widely utilized & accepted among consumers as it is easy to run, providing convenience, real-time tracking, and time-efficient banking services. For instance, a survey done by Deloitte in 2018 estimated that 73% of respondents globally use internet banking at least once a month, compared to 59% utilizing mobile banking apps.
The demand for online banking is continuing to climb. It is projected to maintain its dominance in the industry due to massive internet penetration and an increase in the usage of smartphones. Moreover, banks providing convenience & more accessible options to access online banking products & services and high yield interest rates are the primary causes of the market growth.
With a growing emphasis on smartphone usage and significant internet penetration in numerous nations, the demand for online banking is projected to propel and maintain its market dominance. In addition, clients are using online banking more frequently as a result of banks offering real-time payment options, enabling ordinary banking transactions online, bill payment capabilities, and others. Moreover, the banking industry has witnessed enormous expansion and standardization in products and services delivered via mobile applications and increased consumer brand loyalty, consequently driving market expansion.
The rise in digitalization and expansion of corporate banking is anticipated to drive market expansion. In addition, online banking has enabled investors to monitor their investment portfolio in real time while investing or trading online with ongoing access to their funds. In the near future, it is projected that these online banking features will accelerate market expansion and boost innovative banking services for an increase in corporate investors. In addition, growing corporate investment and the development of online banking services are anticipated to create attractive market prospects in the following years.
Region-wise, the global online banking market is analyzed across North America, Asia-Pacific, Europe, and LAMEA. North America was the highest revenue contributor and is estimated to grow with a CAGR of 12.7%. North America comprises the United States and Canada. In the United States, online banking adoption has expanded significantly and is anticipated to maintain its dominance over the projected period. The presence of prominent market participants, an increase in the number of young people, and increased consumer knowledge of internet banking are some significant developments in the region.
Moreover, the convenience of online banking has increased for consumers who previously utilized traditional banking techniques for their financial transactions. Consumers' preference for online baking services over offline baking services boosts the regional market. The expansion of the online banking market in the region is primarily driven by advancements in information technology and an increase in the creation of consumer-friendly, interactive user interfaces for websites and applications. Furthermore, North America defines significant trends and directions for the global online banking industry, as consumers in this region represent the most advanced online banking consumer base, fueled by the presence of major international players and a large youth population with a high level of product awareness.
Europe is the second largest region. It is projected to reach an expected value of USD 12080 million by 2030, registering a CAGR of 13.2%. Significant regional trends include increasing online banking platforms for conducting significant financial transactions, technological advancements, and the acceptance of online banking features. Smartphone-addicted consumers have adopted online banking due to an increase in the usage of payments, a jump in internet penetration, and a large youth population, which is anticipated to accelerate the expansion of the European online banking market.
Asia-Pacific is the third largest region. The markets of China, India, Japan, Singapore, Australia, and the rest of Asia-Pacific are evaluated for the Asia-Pacific market. Due to expanding economies, growth in knowledge of online banking, and technology services in the region's online banking sector, it is the fastest-growing region globally. These factors contribute to the expansion of internet banking in the region. Countries such as India, China, Japan, Australia, Hong Kong, New Zealand, and Singapore have the most robust online banking markets with significant GDP growth and rising per capita income. In addition, activities such as customer education programs and media advertisements for online banking, as well as the rise in smartphone penetration, have contributed to the expansion of online banking in the region. The region's need for online banking has increased due to technological improvements and the rapid growth of internet access via computers and tablets. In addition, a surge in the deployment of technologies by banks to preserve brand loyalty, expedite improved customer experiences, and expand banking channel operations is becoming one of the most prominent market trends. In addition, the rise in the adoption of different online banking systems and the shift in consumer preferences toward simple payment methods are projected to create future profitable prospects for the industry.
The key players profiled in the online banking market analysis include ACI Worldwide, Inc., Capital Banking Solution, CGI Inc., COR Financial Solutions Limited, EdgeVerve Systems Limited, Fiserv, Inc., Microsoft, Oracle, Tata Consultancy Services Limited, and Temenos Headquarters SA.