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DIGITAL BANKING MARKET:
Top trends boosting the industry growth through 2026
21 Sept 2021
The COVID-19 pandemic played a significant role in increasing the use of digital banking solutions among customers across the world. In the Philippines, 8 in 10 Filipinos are interested in using digital banking services according to a new research report.
Financial institutions and banks are now boosting their digital efforts to flourish in the new normal with new strategies to make existing customers happy and to widen customer base in different areas.
In order to thrive and remain competent, the question remains: what are the trends seen in the global digital banking industry that will help organizations and financial institutions in the coming years?
Here are the top trends to watch out for:
With the rapid internet penetration, Asia Pacific digital banking market will exceed valuation of nearly $8billion by 2026. The digital investment banking segment is expected to grow at more than 10% CAGR through 2026.
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The way we do investment is much easier and different as compared to a few years ago. People no longer rely only with brokers for their investment decisions; now, they can exchange on their own - thanks to e-trading platforms, participate and learn investment and can be accessed with the help of smartphones.
With the rapid digitization, heavy adoption of NFC and POS terminals are seen in developing countries in the APAC region. Banking institutions are also going digital to tap the unbanked sector, increase their customer base, and to remain competitive especially with the rise of digital banks offering convenience and higher interest rates for savings accounts.
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The increase in use of mobile wallets has also forced retail shops to adapt and start accepting mobile payment, integrating the options with their online payment platforms. All these factors will create a positive impact on digital banking market size in the Asia Pacific region.
By 2025, millennials will make up 75% of our modern workplace. They are known for their technology use. To win the segment, financial institutions should have the ability to provide exceptional and frictionless digital experiences with highly personalized user experience to address their financial needs.
According to the study titled “Fintech and Digital Banking 2025,” 80 percent of the customers in the Philippines are expected to open new bank accounts with other banks by 2025.
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Unbanked and underbanked segments in the country are expected to be reduced by half to around 20 percent in five years because of the increasing presence of neobanks and financial technology. The study also noted that 60 percent of bankable customers in the country are willing to shift to more digital banks.
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Published 21 Sept 2021
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