III. Industry Analysis
3.1 Industry Profile
The global banking sector is clawing its way back to normalcy. Authorities' strong support for households and corporates over the course of COVID-19 has clearly helped banks. Lenders were also well-positioned going into the pandemic after banks bolstered their capital, provisioning, funding, and liquidity buffers in the wake of the global financial crisis.
The market size, measured by revenue of the global commercial banks' industry, is $2.5 trillion in 2021 and is expected to increase by 3.8% in 2021. The global commercial banks' industry is the 4th ranked global financial intermediation industry by market size and the 7th largest.
3.2 Market Size
Digital banking market trends lead to the growing use of mobile phones and internet penetration all over the globe. Banks are moving toward digital channels to provide their services. Also, they are working in partnership with FinTech corporations and other third-party interfaces to create additional customer-centric products and services, thereby delivering an enhanced customer experience.
The mobile banking sector has emerged as a channel to attract new customers and generate revenues. Amid the COVID-19 crisis, the global market for the digital banking sector, estimated at $12.1 billion in the year 2020, is projected to reach a revised size of $30.1 billion by 2026, growing at a CAGR of 15.7%. The digital banking market in the US is estimated at $4.3 Billion in the year 2021. The country currently accounts for a 28.78% share of the global market. The major growth drivers of the digital banking industry are changing customer behaviors, increasing investment in Fintech, supportive government policies, and the growth of the e-commerce industry.
