In 2018, the global digital banking platform market was valued at approximately US$ 3.17 billion and is projected to grow to US$ 8.67 billion by 2027, reflecting a compound annual growth rate (CAGR) of 12.07% during the forecast period from 2019 to 2027.
The growth of the digital banking platform market is primarily driven by the increasing digital transformation within the banking sector and the rising consumer demand for smart mobile devices and digital banking services.
The market for digital banking platforms is categorized based on deployment methods and types. In terms of type, it is divided into corporate banking and retail banking segments. Regarding deployment, the market is classified into cloud-based and on-premise solutions. Retail banking has significantly contributed to the overall market share of digital banking platforms. The global digital revolution has transformed the banking landscape, altering customer behaviors and expectations. New players in the ecosystem, including fintech companies, open banking initiatives, payment services directives, and SWIFT standards, are emerging with innovative technological solutions. In 2018, on-premise solutions were the dominant deployment type; however, cloud-based solutions are witnessing a rapid growth rate.
On-premise solutions tend to be more expensive compared to cloud services, as they necessitate substantial IT infrastructure and software installation. Small and medium-sized enterprises (SMEs) often prefer cloud services due to budget constraints and the high costs associated with on-premise solutions. Conversely, larger enterprises typically opt for on-premise deployments, as their larger budgets allow them to cover installation expenses. Additionally, on-premise models offer enhanced security compared to cloud solutions, making them a preferred choice for many large organizations aiming to safeguard against online threats. On-premise deployments also provide greater agility than their cloud counterparts.
However, the implementation of on-premise solutions can be complex and costly to develop internally. Many small and medium-sized enterprises may find it impractical to invest in on-premise digital banking solutions. Consequently, the demand for cloud-based models is expected to accelerate during the forecast period, particularly among SMEs in developing regions. The ongoing global digital revolution is further propelling the adoption of cloud-based deployments across various industries.
The overall size of the digital banking platform market has been determined through a combination of primary and secondary research methods. The research process begins with comprehensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the digital banking platform market. This research also provides an overview and forecast for the global digital banking platform market based on the various segments across five key regions: North America, Europe, Asia-Pacific, the Middle East and Africa, and South America. Additionally, primary interviews were conducted with industry participants and experts to validate the data and analysis. Participants typically include industry professionals such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the digital banking platform sector. Major players in the digital banking platform market include Appway AG, CREALOGIX Holding AG, EdgeVerve Systems Limited, Fiserv, Inc., Oracle Corporation, SAP SE, Sopra Steria, Tata Consultancy Services Limited, Temenos Headquarters SA, and Worldline SA, among others. Other notable players in the digital banking platform market include Backbase, ieDigital, ebanklT, ETRONIKA, Fidor Solutions AG, Finastra, Intellect Design Arena Ltd, Kony, Inc., NETinfo Plc, NF Innova, TAGIT PTE LTD, and Technisys, which are not detailed in this report but can be included upon request.