Online Banking Solution Market Size, Share, Opportunities, And Trends By Service Type (Payment services, Processing Services, Customer and Channel Management, Wealth Management, Others), By Banking Type (Retail banking, Corporate Banking, Investment Banking), And By Geography - Forecasts From 2023 To 2028

The online banking solution market is projected to grow at a CAGR of 12.83% to reach US$199.572 billion in 2028 from US$85.706 billion in 2021.

Online Banking Solution Market Overview:

Online banking is a term used to describe a system of electronic payments that enables consumers to conduct financial transactions online. Due to the superior customer service and consistent user experience emerging as major market trends, the payments services segment is anticipated to maintain its dominance over the projected period. Globally, two-thirds of adults currently send or receive digital payments, with developing economies accounting for an increasing share from 35% in 2014 to 57% in 2021 (Source: World Bank data). The digital revolution has accelerated global improvements in access to and use of financial services, revolutionizing how people send and receive money.

Online Banking Solution Market Drivers:

• The primary driver of the rise in online banking is e-commerce.

The convenience of shopping online or through mobile apps and a higher percentage of e-commerce transactions completed with a credit or debit card than in-store purchases contribute to the growth of digital payment volume. The real-time accessibility of e-commerce products is disrupting many aspects of traditional consumer shopping behaviour, their availability 24 hours a day, and the simplicity of making electronic payments. This behaviour is also becoming increasingly influenced by the widespread use of mobile devices and apps. The average percentage of internet users who made purchases online climbed from 53% before the epidemic (2019) to 60% after the pandemic started (2020/21), according to the United Nations Conference on Trade and Development (UNCTAD), across 66 nations. The rise of e-commerce, which is becoming increasingly common in several nations, will be fuelling the cashless payment sector.

• Investment banking simplified

Not only has online banking revolutionized the banking sector, but it has also significantly impacted other connected industries like investing and portfolio management. The Association of Mutual Funds in India reports that the mutual fund industry's use of digital money is expanding quickly. In August 2019, the percentage increased from 0.5% in 2016 to 14% due to the widespread use of smartphones and the internet. The development of the internet has democratized this field, and cell phones have made learning about financial instruments on the go simpler than ever. Investors may now track their portfolios in real-time using internet banking, where they can invest or trade with the press of a button. They only need to sign in to their bank account and click on the necessary field to acquire a real-time summary of their investments.

• India's initiative in digital payment will increase financial literacy

Over 420 million individuals in India now have access to digitized banking, opening the door for digital financial inclusion. This significantly impacts the shift in socioeconomic behavior toward digital finance. It makes it possible for India's rural and semi-rural people to be receptive to employing safe digital gateways. For instance, the National Payments Corporation of India (NPCI) in October 2022 introduced "UPI Lite" to enable users of smartphones to conduct low-value transactions using the local wallet. With UPI Lite, users will have a useful choice for quick and simple low-value transactions. India currently thrives on low-value UPI payments, with 50% of all UPI transactions taking place below 200 rupees. Users with UPI Lite enabled on the BHIM App can conduct low-value transactions almost entirely offline.

Online Banking Solution Market Key Developments:

• September 2022: Worldline, a multinational provider of payment services, purchased a 40% investment in Online Payment Platform (OPP), a payment service provider (PSP) with a specific payment solution for platforms and marketplaces emphasizing eCommerce. One-third of European eCommerce transactions take place in the marketplaces and platforms vertical, which Worldline's ownership in OPP will enhance.
• May 2022: Checkout for Bharat, which facilitates payment flow & checkout in most Indian languages, was just released by PayU. With the help of this functionality, retailers can provide customers with a customized shopping experience in the primary languages of 79% of Indians: Hindi, Gujarati, Bengali, Marathi, Telugu, Tamil, and Kannada. With the aid of this feature, businesses may reach underserved tier 2, tier 3, and rural markets and prevent consumer drop-offs at the point of payment owing to language barriers.
• November 2021: The new "Buy Now Pay Later" (BNPL) service, which combines an all-in-one payment experience and interest-free payment solution, was just unveiled by Smartpay K.K. It was created to address Japanese consumers' payment-related problems and boost retailer conversion rates. With the first entirely free and safe, smooth, fully automated online payment experience, Smartpay hopes to ease the worry that comes with online purchasing for Japanese credit card customers. The company was founded out of a passion for aiding Japanese retailers to flourish in e-commerce.

COVID-19 Impact

COVID-19 had a significant impact on the retail banking industry. To maintain business and customer service continuity in the UK, banks temporarily closed their branches and moved all their activities to Internet banking. Banks had to enhance their online platforms to enable employees to accomplish work-from-home tasks online. Banks had to spend in their IT divisions to maintain online systems and ensure they could run without interruption, especially given the rise in online transactions and customer inquiries. This was in addition to expanding online offerings to customers. Due to the pandemic, consumer behavior had to shift, and some of those adjustments caused a dramatic increase in online transactions.

Online Banking Solution Market Scope:

 

Report Metric	Details
Market Size Value in 2021	US$85.706 billion
Market Size Value in 2028	US$199.572 billion
Growth Rate	CAGR of 12.83% from 2021 to 2028
Base Year	2021
Forecast Period	2023 – 2028
Forecast Unit (Value)	USD Billion
Segments Covered	Service Type, Banking Type, and Geography
Regions Covered	North America, South America, Europe, Middle East and Africa, Asia Pacific
Companies Covered	Tata Consultancy Services Limited, Oracle Corporation, CGI Inc., ebankIT, Temenos AG, Halcom d.d., Backbase, Fiserv Inc., Technisys, Aci Worldwide Inc.
Customization Scope	Free report customization with purchase

 

Segmentation:

• By Service Type
  • Payment services
  • Processing Services
  • Customer and Channel Management
  • Wealth Management
  • Others
• By Banking Type
  • Retail banking
  • Corporate Banking
  • Investment Banking
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Others
  • Middle East and Africa (MEA)
    • Saudi Arabia
    • UAE
    • Isreal
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Indonesia
    • Thailand
    • Taiwan
    • Others

---

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Market Segmentation

2. RESEARCH METHODOLOGY  

2.1. Research Data

2.2. Assumptions

3. EXECUTIVE SUMMARY

3.1. Research Highlights

4. MARKET DYNAMICS

4.1. Market Driver

4.2. Market Restraints

4.3. Porters Five Forces Analysis

4.3.1. Bargaining Power of End-Users

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

5. ONLINE BANKING SOLUTION MARKET, BY SERVICE TYPE

5.1. Introduction

5.2. Payment services

5.3. Processing Services

5.4. Customer and Channel Management

5.5. Wealth Management 

5.6. Others

6. ONLINE BANKING SOLUTION MARKET, BY BANKING TYPE

6.1. Introduction

6.2. Retail banking

6.3. Corporate Banking 

6.4. Investment banking

7. ONLINE BANKING SOLUTION MARKET, BY GEOGRAPHY

7.1. Introduction

7.2. North America

7.2.1. United States

7.2.2. Canada

7.2.3. Mexico

7.3. South America

7.3.1. Brazil

7.3.2. Argentina

7.3.3. Others

7.4. Europe

7.4.1. UK

7.4.2. Germany

7.4.3. France

7.4.4. Italy

7.4.5. Spain

7.4.6. Others

7.5. Middle East and Africa (MEA)

7.5.1. Saudi Arabia

7.5.2. UAE

7.5.3. Isreal

7.5.4. Others

7.6. Asia Pacific

7.6.1. China

7.6.2. Japan

7.6.3. South Korea

7.6.4. India

7.6.5. Indonesia

7.6.6. Thailand

7.6.7. Taiwan 

7.6.8. Others

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Emerging Players and Market Lucrativeness

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Vendor Competitiveness Matrix

9. COMPANY PROFILES

9.1. Tata Consultancy Services Limited

9.2. Oracle Corporation

9.3. CGI Inc.

9.4.  ebankIT

9.5. Temenos AG

9.6. Halcom d.d.

9.7.  Backbase

9.8. Fiserv Inc.

9.9. Technisys

9.10. Aci Worldwide Inc.

Tata Consultancy Services Limited

Oracle Corporation

CGI Inc.

ebankIT

Temenos AG

Halcom d.d.

Backbase

Fiserv Inc.

Technisys

Aci Worldwide Inc.