Digital Banking Statistics By Region, Demographics And Country

Introduction

Digital Banking Statistics: In today’s world, digital banking has become a broad term that includes online banking, mobile banking, etc. With a worldwide reach and the flexibility to make payments, e-commerce websites are experiencing increased revenue. The increase in digital banking services has led to a decline in the footfall of traditional banks. Moreover, the new way of banking has become prominent these days, which is digital banking. These banks do not have any offline presence and function only over the Internet. Isn’t that amazing?

Let’s check out the well-researched recent Digital Banking Statistics and trends.

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• By 2025, around 7 billion consumers worldwide will have access to digital banking platforms.
• 40% of digital banking users said that when they get frustrated, they prefer to communicate with human customer service agents.
• 48% of Americans use mobile banking, the most popular banking method, followed by online banking (23%) and bank branches (9%).
• Compared to worldwide regions, most of the Net Interest Income is expected to be generated from China, resulting in USD 969,200.0 million in 2024.
• According to survey findings by the American Bankers Association 2023, millennials are expected to be the most active users of mobile payment apps compared to other age groups, with 75% of users.
• The worldwide digital banks market is projected to grow at an annual rate of 7.79% between 2024 and 2028, reaching USD 2.74 trillion by the forecast period.
• Mobile banking is being used by 40% of the users every week.
• Most of the bank’s online and app users vote for their experience as excellent, resulting in 43%.
• As of today, the American digital banks segment is expected to be valued at USD 0.52 trillion.
• Digital Banking Statistics 2024 shows that the worldwide digital bank segment is estimated to generate a Net Interest income of USD 2.03 trillion.

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General Digital Banking Statistics

• 40% of digital banking users said that when they get frustrated, they prefer to communicate with human customer service agents.
• Digital Banking Statistics report that by 2025, around 7 billion consumers worldwide will have access to digital banking platforms.
• As of today, more than half of the adults use digital banking.
• 2 out of 5 consumers prefer to stay with the digital bank forever.
• Mobile banking is being used by 40% of the users every week.
• Digital Banking Statistics estimate that the total number of users in the mobile banking market will reach 3.6 billion in 2024.
• 75% of the customers use digital banking at least once every month.
• 48% of Americans use mobile banking, the most popular banking method, followed by online banking (23%) and bank branches (9%).
• 89% of American bank customers use mobile banking to manage their accounts.

Digital Banks Market By Region

Worldwide

• Digital Banking Statistics 2024 shows that the worldwide digital bank segment is estimated to generate a Net Interest income of USD 2.03 trillion.
• Compared to worldwide regions, most of the Net Interest Income is expected to be generated from China, resulting in USD 969,200.0 million in 2024.
• The worldwide digital banks market is projected to grow at an annual rate of 7.79% between 2024 and 2028, reaching USD 2.74 trillion by the forecast period.
• In 2024, there is a 77.8% change in the net interest income compared to 2023.

America

• As of today, the American digital banks segment is expected to be valued at USD 0.52 trillion.
• However, by 2028, the market is forecasted to show a CAGR of -1.47%, declining to USD 0.49 trillion.
• On the other hand, compared to 2023, the net interest income change in 2024 is expected to be 52.3%.

Asia

• Currently, the Asian digital bank market is expected to reach USD 1.07 trillion.
• Moreover, it is expected to grow at an annual growth rate of 12.27%, reaching USD 1.70 trillion by the forecast period.
• As of 2024, Digital Banking Statistics report that the net interest income change would be 117.3%.

Australia And Oceania

• As of 2024, the Australia and Oceania digital banking market is projected to generate a Net Interest Income of USD 5.42 billion.
• Furthermore, between 2024 and 2028, it will grow at a CAGR of 11.61%, reaching 8.41 billion by the forecast period.
• Net interest income change is expected to be 25.4% in 2024.

Africa

• As per recent Digital Banking Statistics, the African region is expected to generate a net interest income of USD 3.56 billion.
• The market is predicted to show a compound growth rate of 1.56% by 2028, reaching USD 5.32 billion by the forecast period.
• Compared to 2023, this year, the next interest income change is expected to be 29.6%.

Europe

• The European digital bank’s segment is expected to be valued at USD 434.00 billion.
• It will grow at a CAGR of 5.34%, reaching USD 534.50 billion by 2028.
• In 2024, the net interest income change is expected at 43.6%.

Digital Banking Statistics By Demographics

By Age Group

• 18-34 – 88%
• 35-44 – 89%
• 45-64 – 83%
• 65+    – 62%

(Source: aba.com)

According to survey findings by the American Bankers Association 2023, millennials are expected to be the most active users of mobile payment apps compared to other age groups, with 75% of users. With minor differences,  it is followed by users aged 18 to 34 years resulting in 72%, and 56% by 45 to 64 years aged users. Baby boomers aged 65 years and above are also expected to be part of mobile payment apps, resulting in 37%.

By Most Preferred Banking Methods By Generation

The following data explains the most popular ways of banking in different generations.

Gen Z

Millennials

Gen X

Baby Boomers

(Source: aba.com)

Consumer Experience With Mobile App Experience And Online Banking

• Excellent – 43%
• Very Good – 37%
• Good – 17%
• Fair – 3%
• Poor – 0%

(Source: aba.com)

Most of the bank’s online and app users vote for their experience as excellent, resulting in 43%. In addition, the American Bankers Association report shows that 0% of users said their experience with the same is poor.

Net Interest Income Of The Digital Banking Industry Worldwide 2023 By Country

According to Statista research, the United States generated the largest net interest income value worldwide in 2023. The following chart explains the same in terms of country-wise performance.

(Source: statista.com)

Digital Banks’ Customer Deposit Value Worldwide Between 2017 And 2028

(Reference: statista.com)

Digital Banking Statistics estimate that by 2028, the value of customer deposits worldwide will reach USD 30.15 trillion, compared to USD 20.38 trillion in 2024. Overall, the worldwide market is expected to experience a significant improvement by the forecast period.

The Rise Of Digital Banking: Convenience, Efficiency, And A Personalized Future

In today’s fast-paced world, convenience and efficiency reign supreme. This extends to how we manage our finances. Digital banking has emerged as a game-changer, offering a plethora of advantages over traditional brick-and-mortar banking. Let’s delve into the significance of digital banking, explore how Artificial Intelligence (AI) is enhancing the customer experience, and uncover the trends shaping the digital banking landscape in 2024.

The Importance Of Digital Banking

Digital banking refers to conducting banking transactions electronically, eliminating the need for physical visits to a bank branch. This offers numerous benefits for both customers and financial institutions.

• Convenience: Imagine checking your account balance, transferring funds, or paying bills anytime, anywhere. Digital banking allows 24/7 access to your finances, empowering you to manage your money on your schedule.
• Efficiency: Gone are the days of waiting in long lines. Digital banking streamlines processes, allowing you to complete transactions quickly and easily. Need to deposit a check? Simply snap a picture with your phone’s camera app and upload it through your bank’s mobile app.
• Cost Savings: For banks, digital platforms translate to lower operational costs associated with maintaining physical branches. These savings can be passed on to customers in the form of lower fees or better interest rates on savings accounts.
• Security: Digital banking platforms incorporate robust security measures, including multi-factor authentication and encryption, to protect your financial information. Additionally, real-time monitoring allows banks to detect and prevent fraudulent activity promptly.
• Financial Inclusion: Digital banking offers financial services to a wider population, particularly those residing in remote locations or without access to traditional banking facilities. With a smartphone and internet connection, individuals can now manage their finances more effectively.

The Power Of AI In Digital Banking

AI is rapidly transforming the digital banking landscape, personalising the customer experience and enhancing security. Here’s how:

• Personalised Banking: AI can analyse your spending habits, income, and financial goals. Based on this data, it can recommend personalised financial products, budgeting tools, and savings plans. Imagine receiving real-time alerts suggesting ways to cut back on unnecessary expenses or nudges to boost your savings for an upcoming goal.
• Chatbots and Virtual Assistants: AI-powered chatbots provide 24/7 customer support, addressing basic queries and resolving simple issues. This frees up human customer service representatives for more complex inquiries, leading to faster resolution times and improved customer satisfaction.
• Fraud Detection and Prevention: AI algorithms can analyse transaction patterns in real time, identifying anomalies that might indicate fraudulent activity. This proactive approach helps safeguard your hard-earned money.
• Risk Management: AI can assess your creditworthiness more efficiently, enabling faster loan approvals and potentially more favourable interest rates. Additionally, banks can leverage AI to personalise risk management strategies for each customer.
• Improved User Interface: AI can be used to create intuitive and user-friendly banking interfaces that adapt to individual preferences. Imagine a mobile app that learns your most frequent transactions and prioritises them on your dashboard for quicker access.

Digital Banking Trends In 2024

As technology evolves and customer expectations continue to shift, digital banking is poised for further innovation. Here are some key trends to watch in 2024:

• The Rise of Embedded Finance: Imagine seamlessly paying for your online shopping within the shopping platform itself or managing your finances directly through a budgeting app. Embedded finance integrates financial services like payments, loans, and budgeting tools within non-financial platforms, offering an even more convenient banking experience.
• Focus on Hyper-personalization: AI will continue to play a central role in offering hyper-personalized banking experiences. Banks will leverage customer data to tailor financial products, investment recommendations, and budgeting tools to meet each user’s unique needs and goals.
• Focus on Security and Transparency: With the increasing reliance on digital platforms, cybersecurity remains a top priority. Banks will invest heavily in advanced security measures to protect customer data and maintain trust. Additionally, expect increased transparency regarding data collection and usage practices.
• The Rise of Open Banking: Open banking allows customers to share their financial data securely with third-party applications, enabling them to access a wider range of financial products and services. This fosters competition and innovation within the financial services industry.
• Focus on Sustainability: Customers are increasingly interested in aligning their finances with social and environmental goals. Banks will offer sustainable investment options and products that support environmentally friendly practices, catering to this growing demand.

The Human Touch In A Digital Age

While AI promises a more personalised and efficient banking experience, the human touch will remain crucial. Complex financial decisions often require expert guidance, and building long-term relationships with a trusted advisor is still valued by many customers. Here’s how digital banking can be designed to strike a balance:

• Hybrid Approach: Banks will likely adopt a hybrid approach, offering a seamless blend of digital and in-person services. Customers can choose to manage routine tasks through the mobile app while having access to human financial advisors for more complex situations, such as wealth management or loan applications.
• Enhanced Human Experience: The role of human customer service representatives will evolve. Instead of handling basic inquiries, they will focus on providing personalized financial advice, building relationships with customers, and navigating complex financial situations.
• Financial Literacy Initiatives: Digital banking platforms can integrate educational resources to empower customers to make informed financial decisions. This could include articles, videos, or interactive tools that explain financial concepts, investment strategies, and budgeting techniques.

The Future Of Digital Banking: A Brighter Financial Horizon

Digital banking is transforming the way we manage our finances. As technology continues to advance, we can expect even greater levels of personalization, convenience, and security. AI will play a pivotal role in streamlining processes, preventing fraud, and offering hyper-personalised financial solutions. However, the human touch will remain essential, with financial advisors playing a vital role in guiding customers towards achieving their financial goals. By embracing a hybrid approach and fostering financial literacy, banks can empower customers to take control of their finances and build a brighter financial future.

Looking ahead, digital banking holds immense potential to:

• Bridge the Financial Divide: By offering accessible and affordable financial services through digital platforms, banks can reach and empower unbanked or underbanked populations, promoting financial inclusion on a global scale.
• Drive Financial Wellness: Digital banking tools can be leveraged to encourage healthy financial habits. Gamification elements, personalised budgeting tools, and automated savings plans can motivate individuals to save more, manage debt effectively, and achieve long-term financial goals.
• Democratise Financial Services: Open banking and embedded finance will create a more competitive and innovative financial services landscape. Customers will have access to a wider range of financial products and services at lower costs, fostering a more equitable financial system.

Conclusion

In conclusion, digital banking is not just about convenience; it’s about empowering individuals to manage their finances effectively and achieve their financial aspirations. As technology continues to evolve, the future of digital banking promises to be a bright one, paving the way for a more inclusive, efficient, and personalised financial experience for all, as proven by these Digital Banking Statistics.

Rohan Jambhale

Rohan is a senior editor at Sci-Tech Today with extensive knowledge of digital marketing, SEO, and social media optimization (SMO). He is skilled at creating and editing detailed articles filled with accurate statistics that readers find valuable. As a senior editor, Rohan carefully reviews and quality-checks content from multiple writers before it is published. Additionally, he creates infographics to accompany the statistics, making the information easier to understand and more engaging for readers. Rohan's dedication ensures that Sci-Tech Today delivers high-quality and informative content to its audience.

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