With the advent of technology, banking has become much more convenient and accessible for people. Digital banking, which is the use of digital technology to provide banking services, is changing the way people interact with their finances. In this article, we’ll explore some digital banking statistics that shed light on the current state of the industry.
The Growth of Digital Banking
According to a report by Business Insider Intelligence, the number of digital banking users worldwide is expected to reach 3.6 billion by 2024. This is a significant increase from the 2.4 billion users in 2020. This shows that digital banking is becoming more popular among consumers as they prefer the convenience and accessibility of online banking.
Mobile banking is also growing rapidly. A report by eMarketer estimates that the number of mobile banking users in the US will reach 160.5 million by 2023. This is up from 119.9 million in 2018.
The Impact of COVID-19
The COVID-19 pandemic has accelerated the adoption of digital banking. With social distancing measures in place, people are turning to online banking services to avoid physical contact. According to a report by McKinsey, the use of digital channels for banking transactions increased by 20-30% during the pandemic.
Another report by Accenture found that 60% of consumers are using mobile banking more frequently since the pandemic began. This shows that the pandemic has changed consumer behavior, and digital banking is here to stay.
The Benefits of Digital Banking
Digital banking offers several benefits to consumers, including convenience, accessibility, and cost savings. With digital banking, customers can perform transactions from anywhere, at any time, without having to visit a physical branch.
According to a survey by Varo Money, 94% of consumers said that digital banking makes their lives easier. 58% of respondents said that they prefer digital banking over traditional banking because it saves them time.
The Challenges of Digital Banking
While digital banking offers many benefits, it also comes with some challenges. One of the main challenges is security. With the increase in online transactions, there is also an increase in the risk of fraud and cyber-attacks.
Another challenge is the digital divide. While digital banking is becoming more popular, there are still many people who do not have access to digital technology. This can be a barrier to accessing banking services for those who are not tech-savvy or do not have access to the internet.
The Future of Digital Banking
The future of digital banking looks bright. As more people adopt digital technology in their everyday lives, there will be a greater demand for digital banking services. Banks will need to continue to innovate and provide new and improved digital services to stay competitive.
According to a report by Accenture, the use of artificial intelligence (AI) in banking is expected to increase by 200% by 2021. AI can be used to provide personalized banking services, detect fraud, and improve the overall customer experience.
Conclusion
Digital banking is changing the way people interact with their finances. With the growth of mobile banking and the impact of COVID-19, digital banking is becoming more popular than ever. While there are challenges to overcome, the future of digital banking looks bright as banks continue to innovate and provide new and improved digital services to their customers.