Online Banking Market

Market Overview:

The global online banking market size reached USD 4.4 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 6.1 Billion by 2033, exhibiting a growth rate (CAGR) of 3.6% during 2025-2033. North America currently dominates the market in 2024. The growing usage of artificial intelligence (AI) and automation, rising preferences for contactless technologies, including virtual cards and touchless payment systems, and increasing implementation of robust security measures to safeguard client data and financial transactions are some of the factors impelling the online banking market share.

Online banking industry, also known as internet banking, is an electronic payment system facility provided by banks and financial institutions. It allows customers to use banking services and conduct financial transactions over the internet. Some commonly offered services include online bill payments, account opening, deposits, and transfers. It also enables users to view account balances, check recent transactions, obtain statements, apply for credit cards, and order checks. In recent years, online banking has gained immense popularity across the globe due to its cost-effectiveness, ease of use, instant access, enhanced security, and fast service.

Online Banking Market Trends:

Rising Smartphone Usage and Internet Access

The increase in mobile phone usage and internet access globally has significantly influenced the development of digital banking. Mobile banking market has emerged as an integral part of the financial system with more people accessing internet connectivity and smartphone devices. For example, as of April 2025, 70.6% of the global population owned a mobile phone, reaching 5.80 Billion unique users. This mobile-first attitude has heavily influenced how consumers use banking services. The universal adaptation of smartphones has facilitated customers' ability to keep track of their finances, make transactions, and access financial products anywhere, anytime. With smartphones growing cheaper and internet connectivity reaching even the remotest parts of the globe, increasing numbers of users are opting for digital banking options, thus promoting financial inclusion. For example, August 2024's release of Axis Bank's "neo for merchants" app illustrates how mobile banking solutions are streamlining transactions for businesses, giving instant payment processing, and enhancing customer interaction. As these technological advancements continue, they create new opportunities for banks to expand their customer base and enhance their service offerings, paving the way for the continued growth of internet banking market globally.

Expansion of E-commerce and Digital Marketplaces

The swift development of digital marketplaces and e-commerce has turned into a major driver of the growth of online banking services. Moreover, the digital economy is witnessing an unprecedented boom with the global online sales anticipated to cross USD 8.2 Trillion by 2025. The growth of e-commerce is directly proportional to the growing demand for secure, swift, and convenient online payment methods, creating a greater demand for digital banking solutions. Both consumers and businesses need effortless financial transactions, and this has prompted financial institutions to provide cutting-edge products like digital wallets, instant payments, and in-built payment gateways. The increasing movement toward online purchases has also led to the advent of more advanced fraud prevention tools and cybersecurity to secure digital payments. For instance, banks such as Q2 have been able to offer an integrated digital experience, providing customers with a seamless experience for both business and personal banking. As e-commerce becomes even stronger, online banking evolves to serve the more digitally savvy customer base, leading to faster growth in the market and a new age of financial services. This trend identifies how digital payments and e-commerce are revolutionizing the growth of virtual bank money market, leading to further digital bank adoption.

Enhanced Security Features

Security concerns often hinder the widespread adoption of online banking, as individuals are cautious about the safety of their financial information. However, advancements in cybersecurity are mitigating these fears. Banks are implementing robust measures, such as multifactor authentication, biometric security protocols, and real-time fraud detection systems, to safeguard client data and financial transactions. These innovations enhance the overall trustworthiness of online banking platforms, reassuring users about the safety of their digital interactions. Additionally, encryption technologies and artificial intelligence (AI) are strengthening the protection of sensitive information. The continuous evolution of these security mechanisms is making online banking a more reliable and secure option, leading to higher user confidence. In 2024, Airtel Payments Bank introduced two new security options, Fraud Alarm and Transparent Banking, within the Airtel Thanks application. These characteristics improve safety by enabling users to report questionable behavior and enhance transparency by consolidating essential account information in an easy-to-use layout. The initiative aims to make digital banking more secure and transparent for users.

Integration of Artificial Intelligence (AI) and Automation

Artificial intelligence (AI) and automation are revolutionizing the online banking experience by enhancing efficiency, personalization, and service quality. AI-driven systems enable banks to provide real-time user support, analyze large volumes of data, and predict client needs with high accuracy. Machine learning (ML) algorithms play a crucial role in identifying patterns in user behavior, enabling financial institutions to offer tailored services and personalized financial advice. Furthermore, automation is streamlining critical banking processes, such as account opening, loan approvals, and transaction monitoring, reducing the need for manual intervention and minimizing human error. These technologies are not only accelerating the speed of transactions but are also enhancing overall operational efficiency. In 2023, Temenos launched a secure Generative AI solution for banks, which enabled the automatic classification of client transactions to enhance personalization and user experiences. This solution integrated with Temenos' digital banking platform, providing accurate transaction insights while ensuring privacy and security. Temenos focused on ethical AI deployment as part of its ongoing innovation in banking.

Rise of Contactless Banking Solutions

Contactless technologies, including virtual cards and touchless payment systems, are becoming integral to online banking, enabling users to conduct transactions without the need for physical interaction. This shift is also extending to automated teller machine (ATM) usage and in-store purchases, where seamless integration of digital banking platforms with contactless payment methods is becoming the norm. Additionally, the rise of tokenization and encrypted payment methods is enhancing security and increasing user confidence in contactless solutions. The ongoing preference for contactless transactions is reshaping the banking landscape, as it aligns with user expectations for both convenience and safety. In 2023, ToneTag launched the Contextual Unified Secure Payment (CUSP) network, which supported digital payments like unified payments interface (UPI) and contactless tokenized cards. CUSP enhanced payment security with offline data transfer and voice-based payments. It also integrated the internet of things (IoT) devices for proximity detection and offered multiple payment options.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the global online banking market report, along with forecasts at the global, regional and country level from 2025-2033. Our report has categorized the market based on banking type, software type and service type.

Breakup by Banking Type:

• Retail Banking
• Corporate Banking
• Investment Banking
   

Breakup by Software Type:

• Customized Software
• Standard Software
   

Breakup by Service Type:

• Payments
• Processing Services
• Customer and Channel Management
• Wealth Management
• Others
   

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players being Aci Worldwide Inc., Backbase, Capital Banking Solutions, CGI Inc., ebankIT, EdgeVerve Systems Limited (Infosys Limited), Fiserv Inc., Halcom d.d. (Constellation Software Inc.), Oracle Corporation, Tata Consultancy Services Limited, Technisys and Temenos AG.

Online Banking Market News:

• April 2025: Bank of India launched the BOI Mobile Omni Neo Bank App, offering services like 24/7 fund transfers, bill payments, FD management, gold loans, mutual fund investments, and AI-powered assistance. This innovation boosted online banking adoption, enhancing customer convenience and market competition.
• April 2025: Commercial International Bank (CIB) Egypt launched an upgraded internet banking platform, offering services like instant account opening, bill payments, and loan applications. This initiative enhanced customer experience, supported digital transformation, and contributed to financial inclusion, further advancing online banking in the market.
• April 2025: Signature Bank partnered with Q2 to launch an advanced digital banking platform, enhancing both commercial and retail services. The platform delivered a seamless, device-agnostic experience, strengthening customer engagement and boosting Signature Bank's competitiveness in the online banking market.
• March 2025: Jenius Bank launched a next-generation mobile and online banking platform, offering personalized insights based on spending behavior, debt management, and financial tracking. This innovation enhanced financial control for customers, promoting smarter decisions and boosting online banking's appeal for financial wellness.
• February 2024: Bandhan Bank partnered with Oracle to modernize its core banking system and expand digital services. Using Oracle FLEXCUBE and Oracle Banking Digital Experience, the bank enhanced operational efficiency, particularly in underserved areas, and improved services, such as loans and payments.
• May 2024: Temenos introduced its Responsible Generative AI solutions for core banking, enhancing efficiency and product management. These AI-powered solutions integrate with Temenos Core and Financial Crime Mitigation systems, offering transparency, explainability, and compliance for banks.

Report Coverage: