Global Online Banking Market Extends at a Healthy CAGR of 13.8% by 2030

Introduction

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.

Market Dynamics

Increase in Smartphone Usage & Internet Penetration to Drive the Global Online Banking Market

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.

Innovative Banking Services and Rise in Corporate Investors to Provide Opportunities for the Global Online Banking Market

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.

Regional Insights

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.

Key Highlights

• The global online banking market was valued at USD 14,800 million in 2021 and is projected to reach an expected value of USD 47,375 million by 2030, registering a CAGR of 13.8% during the forecast period (2022 – 2030).
• By service type, the global online banking market is classified into payments, processing services, customer & channel management, wealth management, and others. The payments segment was the highest contributor to the market and is estimated to grow at a CAGR of 12.7% during the forecast period. 
• In terms of banking type, the global online banking market is divided into retail banking, corporate banking, and investment banking. The retail banking segment was the highest contributor to the market and is estimated to grow at a CAGR of 12.9% during the forecast period. 

Competitive Players

1. ACI Worldwide Inc
2. CGI Inc.
3. Capital Banking Solution
4. COR Financial Solutions Limited
5. EdgeVerve Systems Limited
6. Fiserv Inc
7. Microsoft
8. Oracle
9. Tata Consultancy Services Limited
10. Temenos Headquarters SA.

Recent Developments

Recent Developments

• September 2022 - ACI Worldwide (NASDAQ: ACIW), a global leader in mission-critical real-time payment software, announced the completion of the previously-announced sale of its corporate online banking solutions to One Equity Partners ("OEP"), a private equity firm, for $100 million in cash. The sale includes customer contracts, technology assets, and intellectual property. The employees dedicated to these solutions have transitioned to the new company. 
• August 2022 - ACI Worldwide (NASDAQ: ACIW), the global leader in mission-critical, real-time payments software, today announced that Eximbay, South Korea's leading overseas payment services provider (PSP), has added ACI Fraud Management for Merchants' real-time fraud prevention solution to its payment services capabilities. 
• August 2022 - ACI Worldwide (NASDAQ: ACIW), the global leader in mission-critical, real-time payments software, today announced an agreement with Japan's leading major domestic payment network, Japan Card Network, Inc, CARNET, to modernize its digital payments infrastructure. The deal will see ACI work with CARNET to provide the latest digital payments technology and next-generation solutions to CARDNET's customers.
• July 2022 - The top provider of mission-critical, real-time payments software worldwide, ACI Worldwide (NASDAQ: ACIW), today announced that it has advanced to the final round of the Microsoft Financial Services Partner of the Year Award for 2022.
• June 2022 - ACI Omni-Commerce was selected as the standout solution in the Omni-Channel Solution of the Year category, chosen for the innovation, flexibility, and control that the solution provides through ACI Smart Engage, payment analytics, QR code payments, and cryptocurrency acceptance, both in-store and online. The solution, which helps merchants to optimize and orchestrate payments, was also a finalist for the Point-of-Sale Technology of the Year award.
• August 2022 - Sumer Commercial Bank is modernizing its banking platform and strengthening its relationship with Capital Banking Solutions by selecting its new core banking system and digital platform.

Segmentation

1. By Service Type
   1. Payments
   2. Processing Services
   3. Customer & Channel Management
   4. Wealth Management
   5. Others
2. By Banking Type
   1. Retail Banking
   2. Corporate Banking
   3. Investment Banking
3. By Software
   1. Customized software
   2. Standard software