Modern customers expect faster, more diverse service options for digital banking. An omnichannel experience is now a must-have element for providing flexible services across multiple communication channels.
Technology and people’s expectations go hand in hand. It’s like Newton’s third law of motion, which states to every action there’s an equal and opposite reaction. To every technological action, there are equal and opposite reactions from people. Digital banking platforms stand at the forefront of this technological action, making it easier for banks to host various financial services.
People have reacted in a variety of ways. Explore these statistics below to see into the future of digital banking.
Key digital banking statistics
The statistics below show the increasing influx of digital banks in the modern market. They provide superior, more cost-effective services than their traditional counterparts.
- In 2021, the digital banking market in the U.S. was estimated at $4.3 billion, accounting for a 28.78% share of the global market.
- China, the world’s second-largest economy, is projected to attain a market size of $4.6 billion by 2026, with a compound annual growth rate (CAGR) of 19.9% during the analysis period.
- Japan and Canada are among the other noteworthy geographic markets; each is forecasted to grow at 11% and 13.1%, respectively, from 2021 to 2026.
- Germany is projected to grow at approximately 14.5% CAGR in Europe. At the same time, the rest of the European market will reach $5.2 billion by 2026.
- Approximately 295.5 million digital banking users are in India, surpassing the U.S. by over 70 million.
Traditional banking vs. digital banking
Traditional banks usually require a visit to a physical branch to access your account. Conversely, online banks operate without physical locations and all interactions must occur digitally.
Online banks can provide benefits such as lower fees and higher rates of return due to reduced operational costs associated with physical infrastructure.
61%
of consumers indicate their likelihood of switching to a digital-only bank.
Source: Business Wire
Let’s look at some competing statistics to unpack the facts about traditional and digital banking.
| Traditional banking | Digital banking |
| 77% of consumers rely on traditional banks as their primary or secondary providers, while only 57% of consumer funds are kept in brick-and-mortar shops. | 35% of consumer funds kept in non-traditional accounts remain in digital-only banks and stand-alone digital accounts out of 43% of consumer funds. |
| Among the 65% of consumers using traditional banks as their primary provider, only 66% express satisfaction. | User satisfaction increases to 79% and 81% for users of digital-only banks (21%) and stand-alone digital accounts (7%). |
Key digital banking trends
Consumer inclination toward digital banking is causing significant changes in banking operations. Many have reduced their branch staff according to customer traffic. Some have even closed their branches. The access that digital banking services offer is just too appealing for busy customers.
The trends below tell the same story.
- Digital banking users in the United States are projected to grow year-over-year to nearly 217 million by 2025. That number was 197 million in March 2021.
24%
of consumers anticipate visiting branches less frequently. Nevertheless, 82% still consider having a nearby branch significant.
Source: EY
- The reduction of 18% in branch staff per customer aligns with customer expectations of visiting branches less often.
- In a significant shift toward online banking, HSBC Bank in the United Kingdom (UK) plans to close over 10% of its branches – 69 out of 510.
- Mobile banking usage saw a 34% increase in 2021 due to continued pandemic lockdowns.
Digital banking usage statistics
According to Businesswire, 35% of consumers prefer non-traditional financial services like digital-only banks and stand-alone digital accounts as primary service providers. The table below discusses consumers and their preference for digital-only banks according to age.
| Age group | Percentage of consumers who prefer digital-only banks |
| All age groups | 21% |
| 18-24 years | 24% |
| 25-35 years | 26% |
| 35-44 years | 29% |
| 45-54 years | 18% |
| 55-64 years | 8% |
- The United States, Canada, Japan, China, and Europe will drive an estimated 13% CAGR in the global investment banking sector.
- China is expected to remain among the fastest-growing in this cluster of regional digital banking markets. The Asia-Pacific market, such as India, Australia, and South Korea, is forecasted to reach$615.6 million by 2026.
- Bank of America leads with over 30 million active mobile app users and more than 40 million online banking customers.
Online banking statistics
Online banking refers to accessing various banking features and services through your bank’s website from your computer. You can check balances, pay bills, and access additional features, like loan or credit card applications, through the banking portal. Read up on the key statistics in this area to discover where the industry is heading.
- Online chat technology, which connects customers to a human customer service representative, has a satisfaction rate of 66%. In contrast, only 26% of customers are satisfied with AI-powered chatbots.
- 77% of Canadians, 71% of US inhabitants, and 69% of Spanish customers use their online banking services at least every month.
- Ally Bank and Discover Bank are among the rapidly growing players in the online banking sector, contributing to the estimated $4.3 billion digital banking market in 2021.
73%
of users worldwide turn to online banking at least once a month, while 59% use mobile banking apps.
Source: Deloitte
- In 2021, mobile banking users in Australia surpassed online banking users for the first time, with over 63% of Australians using mobile banking to buy and manage their accounts.
Mobile banking statistics
Mobile banking is about using apps on mobile devices, like smartphones or tablets, to access many of the same banking features. The bank provides these apps where you have an account and typically use the same login credentials as your online banking portal.
The statistics below talk about the benefits of mobile banking, its competitive advantage, and its grand entrance onto the scene.
- A recent survey indicates an exceptionally high adoption rate among digital banking users, with 89% of customers using their mobile devices for banking operations. Among millennials, this number rises even further to 97%.
- Between 2019 and 2023, mobile banking among bank account holders in the United States increased slowly.
91%
of Gen Xers and 79% of baby boomers recognize its advantages and the benefits it has for all generations.
Source: Insider Intelligence
- In the first quarter of 2023, 63% of bank account holders processed banking matters on their smartphone or tablet, 5% higher than in the first half of 2019.
- In Africa, mobile banking transactions surged from $495 billion in 2020 to $701.4 billion in 2021. The current number of mobile banking users on the continent is 600 million.
- In 2021, around 85% of Turkish individuals trusted smartphones for all their banking and purchasing requirements. At 82% and 76%, Africa and South Korea experienced similar usage. Brazil with 76% shared third place with South Korea, while the UK (65%) and the US (58%) completed the top five.
- Between 2020 and 2021, mobile banking grew five times faster than online banking. However, experts project that online banking will continue, as projections indicate there will be over 3.6 billion online banking users by 2024.
- Experts foresee mobile payments will grow at a CAGR of 29% from 2020 to 2027, reaching an estimated $8.94 trillion.
Digital banking scam, fraud, and security statistics
Digital banking is prone to cyber threats. In 2023, the Reserve Bank of India (RBI) reported bank frauds amounting to over 302.5 billion Indian Rupees. With massive digital transactions, traditional fraud or scam monitoring services need to catch up to modern cybersecurity challenges banking institutions face.
- JP Morgan’s annual payments fraud survey revealed a concerning increase of 10% in card-related frauds, while businesses generally reported lower volumes of digital trickery.
- In 2023, medium-tech fraud exploits that previously plagued fintech are becoming more approachable for fraud teams. US lenders experienced a 1% drop in automated bot attacks for the first time.
50%
of respondents indicated that their banks perform fraud risk assessments just once a year
Source: Deloitte
- Cybercriminals employ malware and trojans to target users, releasing over 100,000 new trojans in 2021 alone. Taking advantage of security vulnerabilities is also a common approach for these hackers.
- In 34% of cases, fraud occurs on a confirmed account on the user’s device, showing that the old-fashioned method of simply stealing things is still a standard..
- In 2022, phishing accounted for 90% of data breaches.
- While 91% of all respondents prioritize lower fees and convenience, their importance is slightly lower than the security of accounts and funds (96%) and the privacy of personal information (93%).
- 95% of US account holders trust their banks to safeguard their personal information on digital banking platforms.
Moving toward a digitally charged future
Online banking offers numerous advantages over most traditional banks. Customers get the ease of accessibility, personalized experiences, and, most importantly, flexibility.
Although security tactics need more work, digital banking platforms are on their way to bridging any gap between modern customers and the complex banking sector.
Learn more about the state of digital banking in 2023.
