Global Online Banking Market 2020 (Includes Business Impact of COVID-19)

                                          
“Global Online Banking Market” is an upcoming study analyzed and produced by Trusted Business Insights. The global online banking market has been categorized on the basis of banking type, solution type, and region/ country.

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About Online Banking

Online banking, also known as digital banking, is a method of handling all types of money transactions electronically using Internet connectivity platform. Online banking website or application (apps) is provided by various banks for fast and smooth transactions and other banking work. Online banking is widely being used among consumers as it is a convenient option instead of visiting the bank, filling forms, standing in the queue, etc.

Online banking provides various facilities such as account balance details, notifications about transfers and money withdrawal, bills payment options, loan offers, online shopping, among others.

Market Growth: Positive & Negative Factors

Increasing penetration of smartphones, tablets, and laptops among individuals is a major factor supporting adoption of online banking websites and apps, which enables online transactions and drive growth of the target market. Statistics indicate that out of the world’s total population of 7.5 Bn as of June 2017, and the number of smartphone users has grown to over 5 Bn in the same year. Changing lifestyles, hectic work schedules and 24x7 working shifts have made it almost impossible for people to visit banks for transactions or other bank-related work. This factor along with the benefits of online banking such as 24x7 service, easy process through clicks, and detailed information offered by online banking such as e-statements, time and date of all the transactions, loans and credit card payments, etc. are major factors fueling growth of the target market. Rapidly growing trend of E-commerce and M-commerce shopping and online payments on these websites is resulting in need for online banking, thereby supporting growth of the global online banking market. Moreover, growing utilization of mobile application banking which is even more suitable and allows the customers to check account details, and handle all kinds of transactions is another major factor expected to drive growth of the global online banking market. Furthermore, growing number of apps, coupled with use of apps for ordering food, booking tickets, household services, ordering groceries, paying rent and bills, etc. and increasing adoption of online payment services is a substitute to traditional banking system. This is a key factor expected to drive growth of the global online banking market.

However, concerns regarding cybersecurity and protection of financial information, slow Wi-Fi connection, technical glitches in websites and apps are some of the major factors that could restrain growth of the global online banking market.

Segment Analysis

By Banking Type:

Among the banking type segments, the retail segment accounted for major revenue share in the target market in 2018 and is anticipated to continue to dominate over the next 10 years.

By Solution Type:

Among the solution type segments, the payments segment is expected to contribute considerable revenue share in the target market, owing to increasing use of mobile applications for faster and easier transactions at any point in time.

Regional Analysis

The Asia Pacific market is estimated to hold a dominant position in the target market owing to presence of large number of players in countries such as India and China, large number of banking apps downloads, and higher number of transactions by individuals in the region. In addition, initiatives taken by government of India for digitalization and recent demonetization have resulted in increasing adoption of online banking. The Europe online banking market is accounted for substantial revenue share in the target market, owing to higher interest rates offered on online banking as compared to traditional banks, and increasing use of e-commerce facility and adoption of smart mobile application are major factors expected to drive growth of the market in this region. The North America market is projected to register moderate compound annual growth rate over the next few years in the target market. The market in MEA is expected to account for moderate share in terms of revenue over the forecast period.

Global Online Banking Market Segmentation:

Segmentation by Banking Type:

Retail Banking
Corporate Banking
Investment Banking

Segmentation by Solution Type:

Payments
Processing Services
Customer and Channel Management
Risk Management
Others