Even before the pandemic, the global digital banking market had been growing rapidly, with millions of people choosing an app or web-based bank over a traditional high-street financial institution.
However, Covid-19 had accelerated the shift to digital banking like never before, as customer expectations changed during the pandemic.
According to data presented by AksjeBloggen.com, the global digital banking market is expected to hit a $2,5-trillion transaction value in 2021, a massive 70% increase in a year.
Digital banks, also known as neobanks or online banks, changed the way people handle and manage money. These app or web-based banks offer a line of mobile banking services that can be used entirely from smartphones, which especially became useful amid the Covid-19 lockdowns.
In 2019, the global digital banking market hit $836.5bn transaction value, revealed the Statista data. After the pandemic struck, the transaction value jumped by 81% YoY to over $1,5-trillion. However, the following years are set to witness even more impressive growth. Next year, digital banking is forecast to become a $4-trillern worth industry. By 2025, the transaction value of all digital banks worldwide is expected to double and hit nearly $8,3-trillion.
The number of people using online banking services has also surged. Statistics show the number of users almost tripled to 141-million since the pandemic struck. In the next four years, this figure is set to jump to 334-million globally.