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More than Half of the World’s Population to Bank Digitally by 2026, New Research

More than half of the worlds population to bank digitally by 2026 New Research

The world’s digital banking uptake is set to increase to a record 53% between 2021 to 2026, research firm Jupiter Research noted in a recent study. According to the company, digital banking services’ penetration could soar to 4.2 billion users from the current average of 2.5 billion in the next five years.

Juniper attributed the trend to digital transformation efforts meant to cushion banks against the negative impact of the pandemic. As a result, Jupiter indicated that China would be the most prominent digital banking market between 2021 and 2026, accounting for circa 26% of global virtual banking transactions.

In terms of individual market leadership, the research outlined five banking groups as the pacesetters in the digital banking arena: Bank of America, Singapore-based DBS Bank, Spain’s BBVA, JPMorgan Chase and British bank HSBC.

The study’s co-author Damla noted that these financial institutions had progressed well in planning and executing digital transformation strategies. However, per Damla, other banks need to follow suit to establish broad and revolutionary roadmaps or risk being outpaced by their more agile counterparts.

Thriving Groups

The five ranked banks made it to the list due to their unique innovations, leadership factors, among other things.

For the Bank of America, its chatbot Erica and a few other digital products recorded massive uptakes in engagement and usage during the Covid-19 pandemic.

JP Morgan Chase incorporated blockchain in their product lines on an experimental basis. They further made strategic acquisitions that augmented the uptake of their digital products and services.

Kinetic business banking app associated with HSBC has also raked in a significant chunk of customers during the pandemic with its eccentric digital banking features and associated online finance programs.

DBS bank realized an overall surge in digital banking engagements while BBVA undertook some strategic product launches, including a crypto trading tool.

Meeting the Market Needs

The truth is generations don’t bank the same. And digital banking is affording banks and the masses a sneak peek of the future of the financial services sector. While it was virtually impossible to predict the current pandemic, it remains a vital driver of stakeholders’ recent rush to enhance digital banking services.

Whether you’re looking to invest from your living room or simply cash a paycheck, you’ll probably agree that the last year has seen decades’ worth of future innovations dramatically come to life. In addition, various demographics have benefited from recent changes, including the young and old, with each settling for banking tools that cater to their imaginations.

Most of Gen Z is starting on the financial journey and is wowed by banking tools keen on helping them navigate the sector, including learning money and saving tips. Millennials have been raised in a tech environment and will quickly settle for a banking tool that offers them high levels of convenience. On the other hand, Boomers are generally satisfied with the status quo and crave financial protection and for their needs to be considered.

Read next: Covid-19 Drives Digital Banking Uptake to a Record High

Source: unsplash.com

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