30+ digital banking statistics providing actionable information

Modern customers expect digital banks to provide faster and more diverse service options. An omnichannel experience is now a must-have for delivering flexible services across multiple communication channels.

Technology and people’s expectations go hand in hand. It’s like Newton’s third law of motion, which states that for every action, there is an equal and opposite reaction. For every act of technology, people have equal and opposite reactions. Digital banking platforms are at the forefront of this technological move, enabling banks to more easily offer a variety of financial services.

People reacted in various ways. Explore the statistics below to understand the future of digital banking.

Key Digital Banking Statistics

The following statistics illustrate the increasing influx of digital banks into modern markets. They provide higher quality and more cost-effective services than their traditional counterparts.

• As the world’s second largest economy, China is expected to reach a market size of US$4.6 billion by 2026, with a compound annual growth rate (CAGR) of 19.9% ​​during the analysis period.

• Japan and Canada are other noteworthy geographic markets; both are expected to grow 11% and 13.1%, respectively, from 2021 to 2026.
• Germany’s compound annual growth rate in Europe is expected to be approximately 14.5%. Meanwhile, the size of other European markets will reach US$5.2 billion by 2026.
• India has approximately 295.5 million digital banking users, more than 70 million more than the United States.

Traditional Banking and Digital Banking

Traditional banks typically require a visit to a physical branch to access your account. In contrast, online banking operates without a physical location; all interactions must occur digitally.

Online banking can offer benefits such as lower fees and higher returns due to reduced operating costs associated with physical infrastructure.

Let’s look at competing statistics to understand the facts about traditional and digital banking.

Key digital banking trends

Consumer interactions with digital banks are leading to significant changes in banking. Many banks have reduced branch staffing based on customer traffic; some have even closed branches. The access provided by digital banking services is too attractive for busy customers.

The trends below tell the same story.

• It is expected that by 2025, the number of digital banking users in the United States will increase to nearly 217 million annually.

• Branch staff per customer were reduced by 18%, in line with customer expectations for fewer branch visits.
• HSBC Bank in the UK plans to close more than 10% of its branches, or 69 of its 510 branches, in a major shift to online banking.

Digital banking usage statistics

according to a Business Wire The report shows that starting in 2021, 5% of consumers prefer non-traditional financial services such as pure digital banking and independent digital accounts as their main service provider. The table below discusses consumer preferences for digital-only banks based on age.

• The United States, Canada, Japan, China and Europe are expected to drive the global investment banking industry’s CAGR to 13%.
• China is expected to remain one of the fastest growing countries in the region’s digital banking market cluster. The Asia-Pacific market, including India, Australia and South Korea, is expected to reach US$615.6 million by 2026.
• Bank of America leads the way with more than 30 million active mobile app users and more than 40 million online banking customers.

Internet banking statistics

Internet banking refers to accessing various banking functions and services from your computer through the bank’s website. Through your bank portal, you can check your balance, pay your bills, and access other features, such as loan or credit card applications. Read key statistics in the field to understand where the industry is headed.

• Online chat technology connects customers with human customer service representatives, with a satisfaction rate of 66%. In comparison, only 26% of customers are satisfied with chatbots.
• 77% of Canadians, 71% of US residents and 69% of Spanish customers use its online banking services at least monthly.

Mobile Banking Statistics

Mobile banking involves using an application on a mobile device such as a smartphone or tablet to access many of the same banking functions. Banks offer these apps wherever you have an account, and you typically use the same login credentials as your online banking portal.

The following statistics discuss the benefits, competitive advantages, and grand entry of mobile banking.

• A recent survey showed that adoption among digital banking users is very high, with 89% of customers using mobile devices for banking. Among Millennials, this number rises even further to 97%.

• In the first quarter of 2023, 63% of bank account holders conducted banking transactions on a smartphone or tablet.
• Experts predict that mobile payments will grow at a compound annual growth rate of 29% from 2020 to 2027, reaching an estimated US$8.94 trillion.
  

Application of artificial intelligence in banking statistics

Artificial intelligence (AI) is rapidly changing the banking industry, Brings benefits to several key areas. Artificial intelligence is making banking faster, more efficient and safer for banks and their customers. As artificial intelligence technology develops, we expect more innovative applications to emerge in the banking industry. Learn some key statistics in this field.

• Artificial intelligence can automate 20% of banking and financial activities.
• By 2030, artificial intelligence can reduce banks’ operating costs by 22%.
• 54% of financial services providers see chatbots as a way to transform customer experience.
• It is expected that the value of artificial intelligence-based fraud detection in the banking industry will reach $68.6 million by 2026.

• It is expected that artificial intelligence in the banking market will grow at a compound annual growth rate of 28.58% from 2021 to 2026.
• 83% of bank executives believe that artificial intelligence and digital banking make banks more vulnerable to cyber threats.
• Bank revenue using artificial intelligence grew 34%.

Digital banking fraud, fraud and security statistics

Digital banks are vulnerable to cyber threats. In 2023, the Reserve Bank of India (RBI) report Bank fraud amounted to over INR 302.5 billion. With large-scale digital transactions taking place, traditional fraud or fraud monitoring services need to address the modern cybersecurity challenges facing banking institutions.

• J.P. Morgan’s annual payments fraud survey revealed a worrying 10% increase in card-related fraud, while the number of digital fraud reported by businesses was generally low.
• By 2023, mid-tech fraud vulnerabilities that previously plagued fintech will become increasingly easier to exploit by fraud teams. Automated bot attacks on Bank of America fell 1% for the first time.

• In 34% of cases, the fraud occurred on a confirmed account on the user’s device, indicating that the old-school method of simply stealing something is still the standard.
• While 91% of respondents prioritize lower fees and convenience, these are slightly less important than the security of accounts and funds (96%) and the privacy of personal information (93%).
• 95% of U.S. account holders trust banks to protect their personal information on digital banking platforms.

Towards a digital future

Online banking offers many advantages over most traditional banks. Customers get convenient access, a personalized experience, and most importantly, flexibility.

While security strategies need more work, digital banking platforms are bridging the gap between modern customers and the complex banking industry.

Learn more about the rise of digital transformation in banking.

This article was originally published in 2023.