Digital banking platform market set to grow to $168.3b by 2032

Growth in internet users and the shift to online banking will drive its expansion.

The digital banking platform market is set to be valued at $168.3b by 2032, recording a compound annual growth rate (CAGR) of 20.9% between 2024 and 2032, according to estimates by Allied Market Research.

The market was valued at $30.4b in 2023.

Several factors, such as the growth of internet users, shift from traditional banking to online banking, and a rise in demand for personalised banking services, is driving the market’s expansion.

However, security and compliance issues, lack of digital literacy in emerging countries, and technical concerns associated with new technology integration and legacy systems, are hindering market growth.

Growth in the usage of machine learning and artificial intelligence in digital banking platforms offer remunerative opportunities for the market’s expansion, said Allied Market Research.

The solution segment accounts for nearly three-fourths of the global digital banking platform market in 2023. Demand for this segment will be driven by an increase in focus on customer acquisition, rising investment for solutions loan processing, and the effective management of established communication amongst bank professionals and customers.

Meanwhile, the cloud segment is expected to lead the market from 2024-2032.