The development of mobile banking systems has transformed the accessibility of banking & financial services, meeting both personal & business sectors. Participants in this ecosystem like telecom operators, payment processors, platform providers of mobile money, money transfer agents, financial institutions, and regulators. Opportunities in the mobile banking market are diverse, ranging from transaction modes like SMS, WAP, & smart cards/NFC, to the nature of payments (P2B, P2P, B2P, B2B) and types of purchases made, like transfers, top-ups, coupons, & merchandise.
Further, the global mobile banking market has seen significant growth, driven by the higher adoption of smartphones & the growing demand for convenient banking services. As smartphones become less expensive and accessible, a larger segment of the population gains access to mobile banking, resulting in a growth in users worldwide. The main driver behind this growth is the exceptional convenience that mobile banking provides. Users can execute many banking transactions anytime, anywhere, without the need to go to physical bank branches. From checking account balances to applying for loans, the flexibility of mobile banking services appeals to a large number of customers.
Moreover, security & trust have traditionally been major concerns for mobile banking users. However, technological development and strong security measures have highly encouraged the safety of mobile banking applications. Furthermore, biometric authentication methods like fingerprint scanning & facial recognition add an extra layer of security, creating confidence in users to conduct financial transactions through their mobile devices, which has reduced concern and fostered greater trust, thereby growing the adoption of mobile banking services globally.
Key Takeaways
- Market Growth: The Mobile Banking Market size is expected to grow by 8.6 billion, at a CAGR of 20.0% during the forecasted period of 2025 to 2033.
- By Transaction: The customer-to-customer segment is expected to lead in 2024 with a major & is anticipated to dominate throughout the forecasted period.
- By Platform: Android as a platform is expected to get the largest revenue share in 2024 in the Mobile Banking market.
- Regional Insight: North America is expected to hold a 56.7% share of revenue in the Global Mobile Banking Market in 2024.
- Use Cases: Some of the use cases of mobile banking include account management, mobile deposits, and more.
Use Cases
- Account Management: Users can easily check their account balances, look into their transaction history, and manage their accounts on the go via their mobile banking app, which includes tasks like transferring funds between accounts, setting up recurring payments, and updating personal information.
- Mobile Deposits: Mobile banking enables users to deposit checks at any location by simply taking a photo of the front and back of the check within the app, which removes the need to visit a physical bank branch, making banking more convenient & accessible.
- Bill Payments: Mobile banking apps allow users to pay bills directly from their mobile devices. Users can schedule one-time or recurring payments for utilities, credit cards, loans, and other expenses, assisting them stay on top of their financial obligations without the struggle of writing checks or visiting various websites.
- Alerts and Notifications: Mobile banking apps can send live alerts & notifications to users, providing updates on account activity, low balances, upcoming payments, & other necessary information, which helps users monitor their finances closely & inspect any suspicious or unauthorized transactions promptly, bettering security and peace of mind.
Market Dynamic
Mobile banking has transformed the way customers interact with their finances, providing unparalleled convenience & accessibility. With the ability to conduct a variety of financial transactions from anywhere at any time, the need to visit physical bank branches has become obsolete, which has driven a significant increase in the adoption of mobile banking services among consumers, improving their overall banking experience.
Also, the growing demand for convenient online banking activities & the growth in smartphone use are expected to further drive the expansion of the global mobile banking market. Mobile banking not only allows users to look into account balances & review financial transactions 24/7 but also saves valuable time, contributing to the strengthening of market trends. Moreover, the growing awareness of personal finance management is expected to support market growth, as consumers look for fast, convenient, and round-the-clock banking solutions.
However, despite the promising opportunities, challenges command the expansion of the global mobile banking industry, mainly concerning data security & privacy concerns. Also, the rise in fear of identity theft, security breaches, & online banking fraud creates major restraints on industry growth. The growth in the incidence of
cyber-attacks, hacking, & data violations further intensifies these challenges, potentially impeding the market's growth in the years ahead.
In addition, the persistence of some individuals preferring traditional banking methods & showing resistance towards digital platforms due to limited technological familiarity or concerns about trust & security presents a barrier to the broad adoption of mobile banking services, which along with a preference for face-to-face interactions, highlights the importance of addressing security and trust issues to encourage higher acceptance of mobile banking among consumers.
Research Scope and Analysis
By Transaction
The global mobile banking market is categorized into customer-to-customer and customer-to-business segments in terms of transaction types. In 2024, the customer-to-customer segment is expected to dominate with a majority of the market revenue and is also expected to exhibit the highest growth rate over the coming years, which is anticipated expansion due to the growing use of mobile banking apps for routine fund transfers & various purchases.
In addition, mobile banking apps support monthly installments for electronic goods purchases, further driving growth in the customer-to-business segment. Also, the convenience and flexibility offered by mobile banking apps are expected to sustain this growth trajectory, shaping the future landscape of the mobile banking market.
Further, the customer-to-business segment plays a vital role in driving the growth of the global mobile banking market in coming years, which is driven by the convenience provided by mobile banking apps, allowing users to initiate payments for goods & services smoothly. Moreover, the provision of features like monthly installments for purchases, mainly for electronic goods, further enhances the adoption of mobile banking. As consumers highly use mobile banking for transactions with businesses, the customer-to-business segment constantly contributes significantly to the complete expansion of the mobile banking market.
By Platform
In terms of platform, the Android segment is expected to dominate the global mobile banking market in 2024, holding the largest market share & revenue, which is anticipated to persist throughout the forecast period, mainly due to the higher adoption of the Android platform, mainly in developing economies. Also, the growth in Android usage in these regions has made banks prioritize the development of mobile banking services on this platform, making it a major trend in the mobile banking market.
As a result, Android users benefit from strong and accessible mobile banking solutions customized to their preferred platform, driving the segment's growth & market dominance.
Further, the iOS segment is expected to show the highest growth during the forecast period, which is due to the innovative integration of voice-activated
artificial intelligence (AI) technologies, like Siri, within iOS mobile banking apps.
By using voice-assisted banking services, iOS users can execute transactions, check balances, and look into information through voice commands, improving the overall user experience. The adoption of voice-activated AI in iOS mobile banking apps not only provides users with better convenience but also shows a forward-thinking approach by banking institutions to meet evolving consumer preferences. As a result, the iOS segment is expected to experience significant growth, reflecting the growth in demand for intuitive & technologically advanced mobile banking solutions among iOS users across the world.
The Mobile Banking Market Report is segmented on the basis of the following
By Transaction
- Customer-to-Customer
- Customer-to-Business
By Platform
Regional Analysis
North America is set to maintain its leading position in the global Mobile Banking market in the coming years, with an estimated contribution of
about 56.7% in 2024, which is expected to be sustained over the next decade, driven by factors like growing awareness about personal finance management in countries like the U.S. & Canada.
Furthermore, the region's market growth is anticipated to be driven by the expanding presence of Fintech startups, which are expected to catalyze growth by launching innovative solutions & services customized to the changing needs of consumers in North America.
Further, the Asia-Pacific (APAC) Mobile Banking industry is expected to show rapid growth during the forecast period, which is largely due to the expansion of smartphone usage & sales in countries like India & China. Moreover, the broader adoption of smartphones in these populous nations provides a higher market opportunity for mobile banking services.
In addition, the presence of key smartphone manufacturers in countries like Japan, China, South Korea, and Taiwan further builds up the growth opportunities of the mobile banking industry in the APAC region. As these countries constantly use digitalization & mobile technology, the need for mobile banking services is expected to grow, driving significant expansion & innovation within the APAC Mobile Banking market.
By Region
North America
Europe
- Germany
- The U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Asia-Pacific
- China
- Japan
- South Korea
- India
- ANZ
- ASEAN
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Egypt
- Rest of MEA
Competitive Landscape
The global mobile banking market is characterized by intense competition among many players providing convenient, secure, & innovative solutions to consumers. Established banks, fintech startups, & technology giants are competing for market share by constantly improving their mobile banking platforms with features like mobile deposits, bill payments, account management, & personalized financial insights.
Further, the rise of digital-only banks & payment platforms intensifies competition, as they use agile technology and customer-centric approaches to attract users. Regulatory developments, changes in consumer preferences, and developments in mobile technology also shape the competitive landscape, driving holders and new entrants as same to adapt quickly and differentiate their offerings to stay relevant in this dynamic market.
Some of the prominent players in the global Mobile Banking Market are:
- UBS
- Capital One
- Citigroup Inc
- JPMorgan Chase & Co
- HSBC Holdings Plc
- PayPal Holding Inc
- Bank of America Corporation
- Barclays PLC
- Standard Chartered PLC
- Other Key Players
Recent Developments
- In February 2024, The Financial Services Commission (FSC) of South Korea announced two new policy measures focused on expanding open banking services. The first initiative focuses on broadening the data accessible through open banking, including both personal & business accounts, which will allow third parties to conduct live multi-account inquiries. Mainly, including business account data focus to support the introduction of customized fund management products for corporate clients. Also, the second initiative aims to extend open banking services to offline channels, enabling account holders to look into services like account inquiries & money transfers through any bank branch.
- In January 2024, ICICI Bank Canada launched its mobile banking app, 'Money2India'. The app allows customers of any bank in Canada to send money quickly and round the clock to any bank in India without opening an account with ICICI Bank Canada. Customers of any bank in Canada can send money via the app using their Visa / Mastercard debit cards. They can quickly send money to India with a single transaction limit of CAD 30,000, with a confirmed exchange rate.
- In October 2023, Entersek launched a complete integrated mobile application authentication solution for financial institutions (FIs), using the Q2 Digital Banking Platform, which developed in partnership with Q2, provides better authentication features within the mobile banking platform, providing a consistent user experience across many channels. Further, the integration of Entersekt’s authentication suite into the Q2 Mobility App allows FIs to protect against many types of fraud, like account takeover fraud, ACH and wire fraud and device takeover fraud, using the pre-built integrations.
- In September 2023, The State Bank of India, the biggest commercial bank in the country, and IDFC First Bank announced the implementation of unified payments interface (UPI) interoperability in their digital rupee (e₹) or the central bank digital currency (CBDC).
- In August 2023, Canara Bank launched its UPI Interoperable Digital Rupee mobile application that enables users to pay with digital currency by scanning any merchant's UPI QR code, which is a part of the RBI's Central Bank Digital Currency (CBDC) pilot project. Further, the Digital rupee would be available to Canara bank customers only on an invite basis, similar to your physical wallet but in digital form., as one can do on the Canara Digital Rupee app including Loading Digital Rupee Tokens; Redeem Digital Rupee Tokens; Send & Receive Digital Rupee Tokens; Scan and Pay using Digital Rupee Tokens.
- In April 2023, City Union Bank Limited launched a facility through which customers can use Voice Biometric authentication for logging into the mobile banking app, as it feature has been introduced for better security purposes, and the customers of the Bank will be protected from fraudsters since Voice Biometric cannot be compromised like PIN / OTP. Further, the feature of voice biometric login would be expanded for net banking users, the process is under development.