E-BANKING MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

E-banking Market Size and Trends

Global e-banking market is estimated to be valued at US$ 9.46 Tn in 2024 and is expected to reach US$ 13.28 Tn by 2031, exhibiting a compound annual growth rate (CAGR) of 5% from 2024 to 2031.

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The growth can be attributed to the increasing adoption of digital payment among customers. Growing digitization and rising smartphone penetration across the world has made banking services more accessible online. Customers are increasingly preferring to pay bills, transfer funds and check account balances online from the ease and convenience offered by e-banking. Furthermore, e-banking offers 24/7 availability of services which is appealing to modern customers. Banking institutions are also promoting e-banking solutions as it reduces operational costs and improves efficiency. With continued technology advancements, the e-banking market is expected to grow steadily in the coming years.

Market Driver - Increasing adoption of smartphones and internet connectivity

The rising affordability and usefulness of smartphones has resulted in their remarkably high adoption globally in recent years. Additionally, access to reliable and fast internet has expanded tremendously both in developed as well as developing nations. This ongoing digital transformation has not only changed the way people communicate and consume information & entertainment but has also revolutionized how banking services are accessed.

With a smartphone and internet connection in their hands, customers now expect to manage their finances anytime, anywhere through online and mobile banking platforms. They want contactless access to features like checking account balances, transferring funds between accounts, paying bills and other utilities, applying for loans and credit cards, trading investments, and more - all with a few taps on their phones. Traditional branch banking is no longer as attractive or convenient for modern customers who seek instant gratification. Financial institutions have recognized this shifting behavior and are aggressively investing in bolstering their digital banking infrastructure and services to meet rising consumer demand.

Established as well as new-age internet-only challenger banks are launching sleek mobile apps and websites to woo customers. Their innovative interfaces designed for an intuitive user experience on small screens have resonated well. New account opening and onboarding processes have also evolved to be completely digital and paperless for a seamless signup. Customers appreciate the ability to freely check details of their financial lives and accomplish tasks from anywhere instead of taking time out to visit a branch. Even day-to-day activities like transferring money to friends and family have become simpler through in-app features. All these technology-driven conveniences have played a major role in drawing more users towards e-banking platforms.

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Growing demand for convenient and accessible banking services

Consumers have increasingly less tolerance for long queues and waiting periods, cumbersome documentation procedures, and limited banking hours which were once synonymous with traditional branch visits. Their expectations of immediacy, simplicity and availability have risen tremendously in the fast-paced digital age. Meanwhile, the hectic schedules and busy lifestyles of modern urban populations leave little time or opportunity for running errands to the bank. This has created considerable demand for banking services that can be accessed with minimal effort and disruption any time of the day from anywhere.

Meeting such dynamic preferences and evolving with customer needs is of paramount importance for banks to not lose their clientele to more innovative competitors. Those adopting digital transformation and an 'always-on' approach through robust online and mobile offerings have been able to strengthen their customer relationships and satisfaction levels. People feel respected and well-served when financial institutions make their lives more hassle-free through technology instead of unnecessary physical hoops. Thoroughly digital banks with no physical branches whatsoever pose a strong promise of never turning customers away and providing the ultimate convenience through websites and apps accessible on any device round-the-clock.

For instance, In April 2021, JPMorgan Chase & Co. launched a new mobile banking app, the Chase Mobile® app, featuring enhanced security measures to better protect customer accounts. This app allows users to securely manage their finances, offering functionalities such as quick money transfers, check deposits, and investment tracking, all from their mobile devices.