Digital-Led Retail Banking Market is Expected to Reach USD 51.83 Billion by 2031

Apr 2024


As per the report published by Kings Research, the global Digital-Led Retail Banking Market was valued at USD 20.76 billion in 2023 and is projected to reach USD 51.83 billion by 2031, growing at a CAGR of 12.33% from 2024 to 2031.

The digital-led retail banking market is progressing at a robust pace on account of the widespread integration of internet and mobile banking services on a global scale. This surge is driven by the convenience and availability of mobile banking apps, attracting a growing number of users across various age and demographic groups. With the widespread availability of smartphones and internet connectivity, customers can now conveniently manage their finances anytime, anywhere, without the constraints of traditional banking hours or physical branches.

Mobile banking platforms simplify fund transfers and payments, enhancing the overall banking experience. Additionally, the emphasis on digital transformation and customer-led design approaches presents opportunities for retail banking. Banks focusing on innovative solutions built along the entire value chain to deliver a leading customer experience can capitalize on the opportunities presented by digital transformation. By investing in technology and continuously improving their mobile banking platforms, banks can stay ahead of the competition and meet the evolving needs of their customers. In today's fast-paced world, convenience and efficiency are key factors in attracting and retaining customers. Therefore, banks that prioritize digital transformation and customer-centric design will be well-positioned for success in the modern banking landscape.

Key Insights

  • By type, the service segment registered a significant revenue share of 67.35% in 2023
  • By application, the transactional segment amounted to a notable share of 41.38% in 2023    
  • By device, mobile phones segment accounted for a substantial revenue share of 42.36% in 2023
  • Based on region, North America held the largest market share of 36.25% in 2023

BNP Paribas: Backing Next-gen Financial Service Advancements

January 2024: BNP Paribas Personal Finance, a major player in retail finance in Europe specializing in consumer credit operations, has extended a groundbreaking collaboration focused on tackling data-related issues within the financial services industry.

Superior Convenience and Accessibility of Digital Banking to Drive Market Expansion

Digital-led retail banking revolutionizes the traditional banking landscape by providing customers with superior convenience and accessibility through digital channels. Unlike traditional branch-based banking, where customers are required to physically visit a bank branch to conduct transactions, digital-led banking enables users to perform a diverse array of banking activities anytime, anywhere, using their preferred digital devices such as smartphones, tablets, or computers. This shift towards digital channels has resulted in a significant increase in the adoption of digital banking services. Moreover, digital-led banking offers a seamless and intuitive user experience. User-friendly mobile apps and online banking platforms are designed with intuitive interfaces and streamlined processes, making it easy for customers to navigate and perform tasks efficiently. Features such as biometric authentication, one-click transactions, and personalized recommendations enhance convenience and security, further enhancing the overall customer experience.

Emphasis on Efficiency by Digital Retail Banks Anticipated to Drive Market Expansion

The automation and digitization of banking processes represent a significant opportunity for banks to revolutionize their operations, drive efficiency, and improve overall performance. By leveraging technology and digital tools, banks can transform various aspects of their operations, leading to streamlined processes, reduced manual intervention, and enhanced operational efficiency across the board. One key area where automation and digitization have a profound impact is in account opening and onboarding processes. Traditionally, opening a new bank account has been a time-consuming process that often required customers to visit a physical branch, fill out paper forms, and provide various documents for verification. However, with digital-led banking, customers can now complete the account opening process entirely online, from submitting identification documents to signing electronic agreements. Automated identity verification checks and digital signatures streamline the process, allowing customers to open accounts quickly and conveniently from the comfort of their homes.

North America to Dominate the Market with a CAGR of 10.22% Over 2024-2031

Based on region, the global digital-led retail banking market is classified into North America, Europe, Asia Pacific, MEA, and Latin America. The region boasts advanced technological infrastructure, including high-speed internet connectivity and widespread smartphone adoption. These factors have facilitated the rapid adoption of digital banking solutions among consumers, driving higher transaction volumes and revenue generation for banks operating in the region. Furthermore, North America is home to some of the world's most digitally mature economies, with a population accustomed to conducting financial transactions online. Consumers in the region exhibit a strong preference for digital banking channels due to their convenience, accessibility, and user-friendly interfaces, contributing to the region's dominance in digital-led retail banking revenue.

Companies Focus On New Product Launches and Collaborations to Fulfill Consumer Demands

The global digital-led retail banking market study is fragmented with key players such as Bank of America Corporation, Citigroup Inc., HSBC Holdings plc, BNP Paribas, Starling Bank, Wells Fargo & Company, Capital One Financial Corporation, Atom Bank, Fidor Bank, and Monzo. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.

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