Published Date : 2025-Mar-22
The global digital banking platforms market is booming, with traditional banks and fintech firms adopting cloud-based, AI-driven, and API-integrated solutions to enhance customer experiences. By 2025, financial institutions are prioritizing omnichannel banking, security, and real-time analytics to stay competitive.
Here’s a look at the top leading companies the digital banking revolution in 2025: Mambu, ebankIT, nCino, Q2 Digital Banking Platform, Backbase, EdgeVerve, CR2, Finastra, NETinfo, Alkami and Sopra Banking Software.
The digital banking platforms market is growing rapidly due to the increasing usage of smartphones and other mobiles and the inclination of banks in transitioning from automated teller machines to online banking systems gradually. Digitization contributes to greater user convenience, security, speed, cost savings, flexibility and sustainability. Digitization also minimizes manual labor by employing software automation. This boosts output leading to competitive services at lower prices to both providers and consumers of financial service products.
Some of the key players in the digital banking platforms market are:
Most customers are already using fintech services for their everyday needs, ranging from creating mobile applications to online bill payments. Banks are trying to keep pace by partnering with fintech companies or offering equivalent products. By analysts, technology shall continue to improve at a high rate in future years, and the customer shall find it increasingly easy to manage their finances as well as carry out Internet payment, thus eliminating the banks' profits. As numerous financial technology companies have emerged around the world in the last few years, providing services that allow individuals to send money to relatives abroad without paying excessively high wire transfer fees or having to exchange money, the need for digital banking systems has increased. Others employ computer software that monitors automatically payments due on credit cards or loans and pays bills on time.
Banks have been behind the digital revolution and are trying to play catch-up now. What is generally considered to be on the edge, like Square's or PayPal's, was introduced by banks years and years ago. Banks are also co-operating with internet businesses in providing services like mobile payments. JPMorgan Chase and Apple, for instance, joined forces to enable people to pay through their iPhones. Additionally, Wells Fargo and Google partnered to provide voice commands for bill payment and money transfer.
Other customers also prefer using the old ways of banking despite the technology in digital banking. For example, the 2019 Federal Reserve survey indicated that about 40% of total transactions in the US are still in cash. Only 15% of personal payments are done online, reported Ugo for Business, a website operated by Natixis, the second-largest bank in France serving small businesses.
Many people across the globe have yet to become totally accustomed to using online banking and still prefer person-to-person contact when dealing with their money. But eventually more individuals will grow accustomed to the use of technology more and more in their day-to-day life. As they try to battle against new fintech companies that provide innovative products at lower prices than banks can provide, large banks might find themselves in a jam. The expansion of the market for online banking platforms is most likely to be somewhat hindered by all these factors.
The retail banking sector seems to be one of the digital front runners in a global environment where financial service providers and banks are battling increasingly. To be specific, 75% of consumers across the globe who are above the age of 16 years affirmed that they would be able to easily do their banking using either a tablet or smartphone. The retail banking sector seems to be one of the world leaders in an international environment where banks and providers of financial services are competing increasingly. Retail banks are investing heavily in digitization of their operations.
The mission of retail banking is to provide customers with an easy, uncomplicated service that meets all their needs under one roof. To maintain pace with the competition, retail banks are moving away from conventional customer service and embrace new technologies. These technologies may involve chatbots for 24/7 customer support, or AI to automate some procedures such as fraud detection. Secondly, mobile applications can be employed to give real-time details about account balances and transactions.
One of the most important areas of focus for the growth of digital banking is the emerging market of digital banking platforms. According to one estimate, for example, it's expected that 590 million Asians in Asia Pacific would employ digital banking by 2021, more than double the number that did so in 2016. And in Latin America, the digital banking market is increasing even more rapidly, with estimated annual growth of 16%.
This is a massive opportunity for banks and other financial institutions that want to increase their customer base and generate revenue growth. But it also means a new way of banking in these markets. Many unbanked and underbanked consumers can be reached through digital channels in the digital banking systems markets in Asia Pacific and Latin America. Such customers can also be provided with fundamental financial services like money transfer, loans, and savings and checking accounts through digital banking. It is also becoming easier for financial institutions to reach customers at little or no cost as such regions become increasingly connected through cellphones and the internet. More than 1 billion individuals use phones in Asia Pacific, representing the world's 40% of population, while 757 million individuals in Latin America use the internet, occupying approximately 53%. As much as its industry has the most digital bank customers (estimated 453 million as of late 2016), Latin America's industry continues to grow by leaps and bounds with a 17% rate of digital bank penetration compared to 26% in Asia Pacific.
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