Wednesday, September 23rd, 2020
Stats by Valuate Reports show the online banking industry will expand by a 12% yearly growth between 2020 and 2026. The analytics firm estimates that the value of online banking will grow from 9.1 to 20.5 billion USD.
The emergence of COVID-19 and stringent control measures were cited as the leading reason for increased internet banking activities.
Valuate Reports also conducted research relating to market trends, opportunities, and impacts of online banking.
Emerging Trends in Internet Banking Shaping the Industry’s Future
- Increased adoption of the internet and technology by people worldwide is also a leading driver for the anticipated growth of the internet banking industry.
- The rise of the online banking market is closely related to the increased adoption of smart devices and the internet. As more people look for financial solutions, traditional banking institutions may not meet all the needs of the modern customer.
- Internet banking also allows clients to transact funds remotely, offers a quick registration process, and monitor bank account data in real-time. These benefits are attracting more customers to web banking and increasing usage.
- Innovative banking offers such as cheap, convenient loans offered by online banks are expected to increase the customer base, further supporting the 20.5 billion USD forecast.
- Nowadays, eCommerce companies and merchants work closely with banking instructions to handle and process funds. The recent growth of the online shopping industry is enhancing the adoption of internet banking solutions and its market size.
- Financial institutions are turning to the internet and technology in many of their processes. For instance, most banks have an online portal that offers self-help solutions to their clients. Such improvements help improve the banking experience for customers.
- Mitigating cyber-attacks is the leading challenge affecting internet banking. An increase in fraud could hinder the rise in online banking in cybersecurity issues. Due to the sensitive nature of financial processes, having robust cyberprotection is a priority for any banking institution.
According to Valuate Reports, retail banking is expected to hold the largest share in online banking by 2026.
The analysis also predicts that Europe will take up the biggest share of the global online banking market, trailed closely by North America.
Increased adoption of online banking solutions has led to industry growth and huge expectations. Digital Banking is expected to increase by 11.4 billion USD by 2026.