The marketplace for digital banking platforms is anticipated to succeed in $9 billion by 2026, in response to new analysis.
ResearchAndMarkets.com analyzed the prospects for corporations providing digitization instruments and providers for banks globally and forecast a 16% compound annualized development fee over the following six years.
The analysis firm’s report cited the rising significance of the “digital customer experience” as a key driver of the pattern, in addition to enhancing safety and reliability of on-line and cellular banking applied sciences.
Funding from private and non-private capital into fintech and banking software program suppliers has additionally risen lately, “promising tremendous opportunities for the global digital banking industry to expand in the near future”, the analysis group mentioned.
As well as, banks world wide have been investing closely into the optimization of end-to-end enterprise processes, rising their working effectivity, enhancing the client expertise and decreasing ongoing prices – all of which may even feed into the expansion of recent banking platforms.
One of many main headwinds to the sector’s development is the rising risk of cyber-attacks.
“Fighting cyber-attacks is one of the biggest challenges facing banks across the globe, considering the delicate nature of the consumer details they have,” ResearchAndMarkets mentioned.
“As cyber criminals conduct more sophisticated and regular attacks, the number of major data breaches is expected to increase over the period.”
The report highlighted a number of examples of fintechs constructing out their banking platform providers this yr, together with Temenos, Fiserv, FIS and Infosys.
In April, FIS partnered with Bambu, a fintech startup, to make use of its “Modern Banking Platform” to energy a brand new digital banking answer for “unbanked and underbanked” folks within the US. This month, FIS introduced a brand new subscription-based banking infrastructure software program providing for US group banks.
Infosys collaborated with each Amazon Internet Companies – the tech large’s cloud computing enterprise – and Summit Know-how Consulting Group to roll out Infosys’s digital platform to US group banks.
As well as, Temenos launched a “banking-as-a-service” platform within the US in January, which goals to allow banks to launch a digital providing inside 90 days.
Separate analysis revealed earlier this month by Broadridge Monetary Options discovered that greater than half of monetary sector C-suite executives and senior leaders needed to implement new applied sciences into their corporations’ operations within the coming months.
Practically two thirds of the 500 respondents mentioned they have been rising their funding into cybersecurity and danger administration, whereas three in 5 mentioned they might be “enhancing multi-channel client communications”.