Just over half of the world’s population will access digital banking services by 2026.
This represents a reach of over 4.2 billion digital users, up from 2.5 billion currently.
The forecast comes from a new report by Juniper Research which identified increased digital transformation efforts as a way of enabling banks to function effectively during the pandemic.
The new research identified that China will be the largest digital banking market over the next five years, accounting for almost 25% of digital banking users by 2026.
The research recommended that banks should better integrate their many offerings into a single, consistent digital experience, to better compete with diverse competition.
It also identified the leading group of banks for digital transformation:
1. Bank of America;
3. JPMorgan Chase;
5. DBS Bank.
The research highlighted the efforts by some banks to digitally transform:
- Bank of America now offers an ever-expanding digital platform, including the Erica chatbot, and has recorded significant upticks in digital usage and engagement during the pandemic;
- JPMorgan Chase has experimented with blockchain and made acquisitions, such as that of wealth manager Nutmeg in the UK to boost its offerings;
- HSBC has launched innovative new solutions, such as HSBC Kinetic for small businesses in the UK;
- BBVA has launched initiatives including cryptocurrency trading and DBS Bank having high levels of digital engagement.
Research co-author Damla Sat noted: “These banks have progressed with well-planned and executed digital transformation strategies, and other banks need to build similarly broad and revolutionary roadmaps, or be left behind by more agile competitors.”