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Tag: digital banking

  • Digital Banking Platform Market Poised for Remarkable Growth, Projected to Reach $168.3 Billion by 2032

    Digital Banking Platform Market Poised for Remarkable Growth, Projected to Reach $168.3 Billion by 2032

    The digital banking platform market is on a fast track to achieving remarkable growth, with projections estimating its value will soar to $168.3 billion by 2032. This surge reflects a staggering compound annual growth rate (CAGR) of 20.9% from 2024 to 2032, as reported by Allied Market Research. In 2023, the market was valued at $30.4 billion, indicating a robust upward trajectory shaped by shifting consumer behaviors and technological advancements.

    The Internet: Fueling a Banking Revolution

    At the heart of this expansion are key drivers such as the rapid growth of internet users, a significant pivot from traditional banking to digital solutions, and an increasing demand for personalized banking experiences. As more consumers embrace online banking, institutions are finding themselves at the crossroads of opportunity and challenge.

    Challenges on the Horizon

    However, the road to growth is not without obstacles. Concerns over security and compliance are significant, particularly as legacy systems struggle to integrate with emerging digital technologies. Additionally, a lack of digital literacy in several developing markets could hinder potential user engagement and limit the full benefits of online banking.

    A Bright Spot: Artificial Intelligence and Machine Learning

    Interestingly, the infusion of artificial intelligence and machine learning into digital banking platforms is opening new avenues for growth. Allied Market Research notes that these advancements present lucrative opportunities that could reshape the landscape of financial services.

    The Solution Segment Takes Center Stage

    Current trends indicate the solutions segment dominates the digital banking landscape, accounting for nearly three-fourths of the market in 2023. This segment thrives as financial institutions increasingly prioritize customer acquisition, invest in loan processing solutions, and seek to enhance communication between banking professionals and their clients. And let’s face it—the banking world could use a dash of communication spice!

    Cloud Computing: The Future Framework

    Looking ahead, the cloud segment is poised to take the lead from 2024 to 2032. With its ability to offer scalable and flexible banking solutions, the cloud promises to support the increasing complexity of a customer-driven financial ecosystem.

    Questions & Answers

    What is the projected market value for digital banking platforms by 2032?
    The digital banking platform market is expected to reach a valuation of $168.3 billion by 2032.

    What are the main drivers of growth in the digital banking sector?
    Key factors driving growth include the rising number of internet users, a transition from traditional banking to online services, and a growing demand for personalized banking solutions.

    What challenges do digital banking platforms face?
    Challenges include security and compliance issues, a lack of digital literacy in emerging markets, and technical difficulties related to integrating new technologies with existing systems.

  • Malaysia’s AirAsia applies for digital banking license

    Malaysia’s AirAsia applies for digital banking license

    Malaysian budget airline AirAsia Group Bhd said on Thursday its fintech unit has bid for a digital banking license in the country as part of a consortium.

    BigPay, the unit, has partnered with Malaysian Industrial Development Finance Berhad – a unit of the country’s largest asset manager Permodalan Nasional Bhd – and private equity firm Ikhlas Capital.

    Singapore-based Ikhlas was founded by Nazir Razak, the former chairman of CIMB Group Holdings.

    The consortium also includes a foreign conglomerate with fintech expertise, AirAsia said in a statement.

    Citing sources, Reuters reported earlier on Thursday that AirAsia and its partners were among the bidders for up to five digital banking licences that the Malaysian central bank has said it will issue by early 2022.

    Other bidders include a joint venture between ride-hailing-to-fintech group Grab and Singtel, telecoms operator Axiata and a consortium backed by Chinese tech firm Tencent.

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  • Hong Kong Millennials Drive Digital Banking Delays

    Hong Kong Millennials Drive Digital Banking Delays

    While most new recipients of Hong Kong digital banking licenses were planning to begin operations by 2019-end, higher priorities are in play for the city’s millennials – the key demographic for the sector – causing lenders to delay their launches.

    Some players were believed to be launching brand and marketing campaigns as early as this month before formally launching their services. The Hong Kong Monetary Authority previously said that digital banking launches could be expected in the fourth quarter of 2019 at the earliest.

    This form of banking service is mainly aimed at the youth, millennials, and many of them are out on the street these days joining the protests, citing an unnamed source with direct knowledge. It will be difficult to launch a brand campaign around them and attract their interest when their priority is clearly not having another bank account. The source added that the digital banks will now instead launch in early 2020.

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  • OCBC BANK Is First Singapore Bank To Let You Open Account Digitally

    OCBC BANK Is First Singapore Bank To Let You Open Account Digitally

    OCBC Bank is the first Singapore bank to roll out a digital instant account-opening service for all customers who are Singaporeans or permanent residents. Even if you do not currently have any relationship with OCBC Bank, you can leverage national data repository MyInfo and – for the first time – OCBC Bank’s real-time, digital KYC process (e-KYC) to open an OCBC 360 Account using your mobile device or desktop. It all takes less than five minutes via the bank’s website, with no need to visit a bank branch or provide documents. Verification and authentication happens in real time; once this is completed, you get a new account number within seconds of a successful application. You can start using the account right away for functions like electronic transfers, rather than having to wait a few days for application approval.

    There are two main processes involved in OCBC Bank’s digital instant account opening. The first is submitting an application, which is made fussfree thanks to MyInfo, the digital vault of verified personal data designed by the Singapore government. Logging in using your SingPass, you simply consent to OCBC Bank using your MyInfo profile to set up a new account. An online OCBC 360 Account application form is then pre-filled with your personal details, so you do not need to key in details or submit any additional documentation.

    The second process is to verify that you are who you say you are, which is known as KYC or “know your customer”. Even after OCBC Bank successfully integrated its systems with Myinfo in May 2017 in a successful industry pilot – so you could pre-fill application forms with your government-verified personal particulars – you still had to wait for your account to be approved because KYC checks had to be conducted, typically using humans. Now, however, OCBC Bank has digitised the KYC process, and for the first time, is able to authenticate customers in real time using electronic means so that approval for successful account applications is granted instantly.

    Mr Aditya Gupta, OCBC Bank’s Head of E-Business Singapore, said: “Instant is the new black. I believe this instant, hassle-free and secure access to our core banking products will make it hugely compelling for people to initiate and deepen their primary banking relationship with OCBC Bank. Our ambition is to have one in every two customers on-boarded digitally with zero human intervention, and this launch is a significant milestone in that journey. We will be extending this service to a broader suite of our products shortly.”

    Driving digital with the OCBC 360 Account In 2014, OCBC Bank was the first bank in Singapore to enable customers to apply for a bank account online with the launch of the OCBC 360 Account, the first account in Singapore to reward customers with bonus interest for doing more banking transactions using their account, such as crediting their salary, making bill payments or spending on their credit cards. Since then, more than

    20 per cent of OCBC 360 Accounts have been applied for remotely on a mobile device or desktop, with account approvals taking up to three days.

    Now, with the MyInfo integration and the bank’s real time e-KYC process in the account opening journey, account approvals are instant for successful applications. Customers will be able to use the OCBC 360 Account opened online to immediately make funds transfers via PayNow or Fast, and start earning bonus interest from performing various transactions. This fast and seamless on-boarding proposition will sit well with time-strapped PMETs and young professionals who are highly digitally engaged and who make up twothirds of OCBC Bank’s existing OCBC 360 Account base. The OCBC 360 Account customer base has grown 30 per cent year-on-year and has captured a sizable base of PMETs’ salary crediting – over 40 per cent of deposits growth comes through OCBC 360 Accounts – while also driving day-to-day banking and the use of PayNow.

    More than 90 per cent of OCBC 360 Account customers are digitally active and have accessed OCBC Bank’s digital platforms at least once in the past three months. Digitally active customers are found to own twice as many banking products as those who are not digitally active, and the number of OCBC 360 Account customers who take up financial products has grown by more than 10 per cent since a wealth bonus interest was introduced in 2015.

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