The rise of digital-only banks and the focus on digital transformation will drive the growth
According to Juniper Research, the total number of digital banking users will exceed 3.6 billion by 2024, compared to 2.4 billion in 2020.
The study revealed that digital-only banks have gained market share from traditional banks by offering superior user experiences.
In 2019, banks invested heavily in digital transformation and new offerings, despite the extent of these activities varied considerably.
For example, Bank of America provides extensive digital solutions, including the Erica chatbot, and has succeeded in digital usage and engagement. Along with that, BBVA has focused on capitalizing on APIs in banking, by offering the Banking-as-a-Service platform called BBVA Open Platform. What is more, JPMorgan Chase has experimented with blockchain and is rumored to be planning a digital-only launch in the UK.
In addition to that, the research also stated that traditional banks are launching digital-only brands, such as Bó from UK bank NatWest.