Asia Pacific Digital Banking Market Size exceeded USD 5 billion in 2019 and is poised to register gains at over 5% CAGR between 2020 and 2026. In 2019, the digital payment transaction value across the region accounted for over USD 500 trillion, with transaction volume reaching around 400 billion.
Digital Banking Market, By Service
Get more details on this report - Request Free Sample PDF
The market has benefited significantly from the increasing adoption of NFC and POS terminals in developing Asian economies. The proliferation of smartphones and tablets in nations, such as India, the Philippines, Indonesia, and Malaysia, has commercialized mobile wallets. This has forced wholesalers and merchants to adopt platforms that enable mobile payments at their outlets. The use of NFC and POS terminals for such payments has increased the value proposition and effectiveness of vendors' marketing efforts, contributing substantially to the regional market growth.
The concerns of transmission of COVID-19 virus through the exchange of physical currency have sped up digital payments across multiple spheres of retail shopping. China has implemented contactless digital payments at the point of sale, such as Quick Response (QR) codes and near-field communications (NFC), to make it less likely for the virus to spread to others through cash exchanges.
The investment banking segment is set to attain a CAGR of over 10% by 2026. The rapid penetration of internet in the APAC has made financial products and services available to a greater number of customers and promoted the adoption of digital financial investments. Earlier, investors were solely dependent on their brokers but nowadays they are participating more in buying and selling of shares with the help of the internet. E-trading has saved time, energy, and money as it helps to access the trading market from anywhere at any time.
The non-transactional services segment held over 5% of market share in 2019, driven by the increasing use of digital banking technologies in the asset management services for streamlining processes, freeing up resources for value-added activities, and allowing providers to target new segments. The increased affinity toward digital technologies among younger generations and the rising cost of running legacy systems are driving wealth managers to adopt a new suite of tools, such as robot-advisers, data analytics, and real-time services, for a more efficient, and customized banking service.
The market has witnessed multiple strategic alliances between fintech enterprises and banking institutions to develop innovative digital banking products and tap into the lucrative market. For instance, in January 2019, Western Union and Kakaobank of Korea Corporation launched Western Union money transfer services within Kakaobank’s mobile application. This launch helped the customers of Kakaobank to send and receive money internationally over mobile phones.
Some of the leading companies operating in the APAV digital banking industry include Appway AG, Bank of New York Mellon Corporation, CREALOGIX AG, ebankIT, Etronika, Fidor Solutions AG, Finastra, Halcom.com, ieDigital, Infosys Limited, Intellect Design Arena Limited, Kony, NETinfo Plc, NF Innova, Oracle Corporation, SAB, SAP SE, Sopra Steria, Tata Consultancy Services Limited, Technisys S.A., Temenos AG, and Worldline.