E-banking allows customers to conduct financial transactions through digital channels such as mobile applications and internet banking portals instead of visiting a brick-and-mortar branch. It provides convenience to customers to check account balances, pay utility bills, transfer funds, view statements, Apply for loans and much more from anywhere and anytime. E-banking has become very popular due to its advantages of time-saving, ease of use and paperless transactions. The growing digitization and adoption of digital payments is driving significant growth of the e-banking market globally.
The Global E-banking Market is estimated to be valued at US$ 9.46 Tn in 2024 and is expected to exhibit a CAGR of 5.0% over the forecast period from 2024 to 2031.
Key Takeaways
Key players operating in the E-banking market are JPMorgan Chase & Co., Bank of America, Wells Fargo & Co., Citigroup Inc., HSBC Holdings plc, Goldman Sachs Group, Inc., American Express Company, PayPal Holdings, Inc., Square, Inc. (Block, Inc.), Barclays PLC, UBS Group AG, Standard Chartered PLC, BNP Paribas, ING Group, and Ally Financial Inc. These players are investing heavily in developing advanced digital banking solutions and platforms to offer enhanced e-banking experience to customers.
The growing adoption of smartphones and rising internet penetration is driving significant demand for e-banking services globally. Customers find e-banking convenient as it allows them to access their bank accounts anywhere and anytime. This increasing usage of digital channels for banking is propelling the market growth.
The E-Banking Market Size is witnessing rapid global expansion on account of increasing digitization in developing economies. Many traditional banks are expanding their digital banking footprint in emerging markets of Asia Pacific, Latin America, Middle East and Africa to tap the growing opportunities. New market entrants are also intensifying the competition.
Market Key Trends
Open banking is emerging as a key trend in the e-banking market. It allows third-party developers to build applications and services around the banking system to offer more choice and convenience to customers. Through open banking APIs, banks share customer data with other businesses to offer value-added financial services. This growing availability of open banking platforms is enabling the development of many fintech solutions and personal finance tools, benefiting both customers and banks. Open banking has the potential to significantly transform the e-banking landscape in the coming years.
Porter’s Analysis
Threat of new entrants: E-banking requires high initial investments in technology infrastructure and data security measures which acts as a barrier for new entrants.
Bargaining power of buyers: Buyers have high bargaining power due to presence of many existing banks providing e-banking services with minimal switching costs.
Bargaining power of suppliers: Banks face low bargaining power of suppliers as they develop most of technology infra and software inhouse or hire specialized firms.
Threat of new substitutes: Threat of substitutes is moderate as services like digital payment firms provide alternative payment solutions.
Competitive rivalry: Intense competition exists among existing major players.
Geographical Regions
In terms of value, North America dominated the e-banking market in 2024 with a share of around 35% due to high internet penetration and early tech adoption.
Asia Pacific is anticipated to grow the fastest during the forecast period. Developing economies like India and China are witnessing increasing internet and smartphone usage, driving the demand for e-banking services in the region. Governments are also supporting financial inclusion through digital means.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
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