The global digital banking platform market size is expected to reach $10.87 billion by 2027, which means that it’s expanding at about a 13.6% CAGR (compounded annual growth rate), according to estimates from Allied Market Research (AMR).
[Findings of the report:]
“Growing adoption of online banking over traditional banking drives the growth of the global digital banking platforms market. North America contributed the highest share in 2019, and will maintain its dominance throughout the forecast period. During the Covid-19 pandemic, users are preferring digital banking platforms such as internet banking to avoid physical contact with individuals and prevent transmission of coronavirus.”
But the report also mentioned that compliance and online data security issues may begin to limit the growth of the virtual banking market. Despite cybersecurity issues, the digital banking sector is on track to grow steadily in the coming years due to advancements in related technologies such as artificial intelligence (AI) and machine learning (ML).
AI and ML are used to make intelligent decisions about key business and banking processes. They may also be used to analyze large amounts of data in order to determine the creditworthiness of an application. Additionally, AI can help detect suspicious or potentially fraudulent transactions by using context clues or by looking for certain patterns in the way payments or transactions are made.