With an increase in digital transformation efforts that banks adopted after disruption by the Covid-19 pandemic, there has been a significant growth in the number of users opting for digital banking.
With an increase in digital transformation efforts that banks adopted after disruption by the Covid-19 pandemic, there has been a significant growth in the number of users opting for digital banking. As of now, 2.5 billion users across the world use banking services digitally. It’s expected that almost 53 per cent of the global population will access digital banking by 2026, according to a study by UK-based research firm Juniper Research.
The new research, Digital Banking: Banking-as-a-Service, Market Transformation & Forecasts 2021-2026, has identified that over the next few years, China will become the largest digital banking market and will account for as much as 25 per cent of digital banking users. The study has analysed 30 leading Tier 1 banks on their innovation in terms of digital features, investment and innovation. Apart from this, agility of banks in terms of their size, profitability and brand strength were also considered in order to evaluate their digital transformation readiness and highlight their respective positioning.
“Banks better integrate their many offerings into a single, consistent digital experience, to better compete with diverse competition,” read the study note. It is to note that Bank of America, HSBC, JPMorgan Chase, BBVA, and DBS Bank have been identified as some leading group of banks for digital transformation.
As of now, Bank of America is offering an ever-expanding digital platform which includes 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, such as that of wealth manager Nutmeg in the UK to boost its offerings. 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,” the study noted.
Damla Sat, co-author of the report said that these banks have progressed with well-planned and executed digital transformation strategies during the pandemic. Similarly, other banks also need to build broad and revolutionary roadmaps in coming years or they will be left behind by more agile competitors.