Accelerated by the ravaging Covid-10 pandemic, the global digital banking market is expected to hit a whopping transaction value of $2.5trillion in 2021, a massive 70 percent increase in a year.
According to data presented by AksjeBloggen.com, the number of users almost tripled amid the pandemic as 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 81percent YoY to over $1.5trn. However, the following years are set to witness even more impressive growth. Next year, digital banking is forecast to become a $4trillion worth industry. By 2025, the transaction value of all digital banks worldwide is expected to double and hit nearly $8.3trn.
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, the COVID-19 had accelerated the shift to digital banking like never before, as customer expectations changed during the pandemic.
Digital banks, also known as 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.
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.