In 2026, the number of digital banking users will reach more than 4.2 billion from 2.5 billion in 2021, which equals 53 percent of the global population, according to a new report.
A report from Juniper Research, a provider of research and analytical services to the global hi-tech communications sector, identified that enhanced digital transformation efforts has enabled banks to function effectively during the coronavirus pandemic, justifying the benefits of digital banking and fostering further user growth.
The research titled “Digital Banking: Banking-as-a-Service, Market Transformation & Forecasts 2021-2026”, identified that China will be the largest digital banking market over the next 5 years, accounting for almost 25 percent of digital banking users in 2026.
The research recommends that banks better integrate their many offerings into a single, consistent digital experience, to strongly compete with the diverse competition.
Further, Juniper Research’s Digital Transformation in Banking Readiness Index analyzed 30 leading Tier 1 banks on their innovation in terms of digital features, investment and innovation, as well as on their agility in terms of size, profitability and brand strength, in order to evaluate their digital transformation readiness and highlight their respective positioning.
The research identified the leading group of banks including Bank of America, HSBC, JPMorgan Chase, BBVA and DBS Bank, for leveraging digital transformation.
“These banks have progressed with well-planned and executed digital transformation strategies, and other banks need to build similarly broad and revolutionary roadmaps or be left behind by more agile competitors,” research co-author Ms. Damla Sat, said.
Bank of America offers an ever-expanding digital platform, such as the Erica chatbot, and has recorded significant upticks in digital usage and engagement during the pandemic. JPMorgan Chase has experimented with blockchain and made acquisitions.
HSBC has launched innovative new solutions, such as HSBC Kinetic for small businesses in the UK, with BBVA launching initiatives including cryptocurrency trading and DBS Bank having high levels of digital engagement.