With the pandemic accelerating digital adoption across the globe, the popularity of digital banking has soared through the roof. Around 35% of customers adopted online banking, with 30% specifically increasing their use of mobile banking, since COVID-19 struck last year.

According to the Global Mobile Consumer Trends Report, downloads of mobile banking apps rose 20% from Q1 to Q2 2020. Moreover, the report noted that the Daily Active Users (DAU) of banking apps has also grown by nearly 6% since the pandemic began.

While this data undoubtedly proves that digital banking has gained the limelight since early 2020, a new study by Juniper Research claims that the upward trend is here to stay.

According to their report, 53% of the global population will embrace digital banking services in 2026. This means that the number of digital banking users will increase to 4.2 billion by 2026 from 2.5 billion in 2021.

The new research has identified China as a key player in the digital banking space. By 2026, China will be the largest digital banking market, accounting for nearly 25% of all digital banking users worldwide.

According to Statista’s 2020 Fintech Survey, China was expected to generate nearly $1.9 trillion worth of transactions or 45% of all digital payments in 2020.

Juniper Research’s Digital Transformation Readiness Index 2021

Bank of America (BOA) ranked first, followed by HSBC, JPMorgan Chase, BBVA and DBS Bank in the Digital Transformation readiness index. These banks are leading the world in terms of innovative digital strategies and increased user engagement through digital platforms.

According to the report, BOA offers an ever-expanding digital platform, including the Erica chatbot, and has recorded significant growth in digital usage and engagement during COVID-19. JPMorgan Chase, on the other hand, has experimented with blockchain and has made acquisitions in the wealth management space to boost its offerings.

HSBC has launched innovative solutions, such as HSBC Kinetic for small businesses in the UK, while BBVA has launched initiatives including cryptocurrency trading. Singapore-based DBS Bank has also registered high levels of digital engagement.

Research co-author Damla Sat said,

‘These banks have progressed with well-planned and executed digital transformation strategies, and other banks need to build similarly broad and revolutionary roadmaps, or they will be left behind by more agile competitors.”

Featured image credit: Photo by ijeab on Freepik

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