Delhi, Jan. 19, 2022 (GLOBE NEWSWIRE) — India digital banking platform market is growing at a high CAGR because of the rapid digitization and growing adoption of advanced technologies. Also driving the market’s growth is the increasing use of these platforms by small and medium-sized businesses…
A recent study, conducted by the strategic consulting and market research firm BlueWeave Consulting, revealed that India digital banking platform market was worth USD 776.7 million in the year 2021. According to the study, the market is estimated to grow at a CAGR of 9.8%, earning revenue of around USD 1,485.5 million by the end of 2028. The growth of the India digital banking platform market can be attributed to rapid digitization and growing adoption of advanced technologies, such as cloud computing, the Internet of Things (Internet of Things), Artificial Intelligence, and so on.
Additionally, government initiatives, such as Digital India, are also playing a crucial role in boosting internet accessibility among its citizens, expanding the consumer base for the digital banking platform market. However, high data-security concerns and risks of cyberattacks and fraudulent activities may act as a restricting factor for India’s digital banking platform market.
Rising Adoption of Digital Banking Platform Among SMEs is Driving Market Growth
The growing number of small and medium-sized enterprises in India and the growing adoption of advanced technologies, such as cloud computing and business efficiency tools, such as digital banking platforms, are among the major factors driving the market’s growth. These platforms increase business efficiency in various ways, such as facilitating automatic payments for regular utility bills, enabling better accessibility and flexibility while managing transactions, as well as better security. As a result, digital banking platform adoption is soaring among SMEs in the country, boosting the overall growth of the India digital banking platform market.
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Increasing Number of Neobanks in India is Expected to Drive the Growth of the India Digital Banking Platform Market During the Forecast Period
Neobanks are dubbed as the “banks of the future” as these banks operate completely online without any physical braches. Neobanks are also known as “digital banks” and are fast emerging as a suitable and futuristic alternative to the brick-and-mortar banks. Since the Reserve Bank of India (RBI) does not allow banks to be 100% digital yet, neobanks in India rely on their partner banks to offer their services. Moreover, customers of Neobanks are offered lucrative offers with higher interest rates and several other benefits that are not offered by conventional banks.
The number of neobanks is growing rapidly in India. For instance, Paytm launched its own bank, Paytm Payments Bank, in November 2017 and is arguably the largest neobank in India. The company has received approval from RBI to operate as a scheduled bank. Since then, many neo banks have emerged in India, including Razorpayx, Airtel Bank, Jupiter, Niyo, Open, to name a few. The emergence of neobanks in India has created a growing demand for digital banking platforms in the country, which is expected to drive the growth of the Indian digital banking platform market during the forecast period.
Growing Mobile Banking Sector is Driving the Growth of India Digital Banking Platform Market
Based on banking modes, India digital banking platform market is grouped into online banking and mobile banking. The mobile banking segment accounts for the largest market share because of the increasing number of smartphones in India. The Millennial customers, who prefer instant gratification, demand one-click solutions for everything, including payments and other banking services, which is driving the growth of mobile banking across the country. Mobile banking also provides a variety of services, such as instant transfer of funds, bill payment, access to transaction history, etc., which prove to be very beneficial, especially for small and medium-sized businesses. Thus, the increasing popularity of mobile banking is favoring the growth of India’s digital banking platform market.
India Digital Banking Platform Market – By Deployment Type
Based on deployment types, the India digital banking platform market is grouped into on-premises and cloud segments. Due to improved efficiency, faster data access, and better traffic monitoring in the cloud, cloud deployments account for most market shares. In addition, cloud deployment enables companies to expand beyond their physical capacity while meeting their financial goals. Moreover, cloud-based deployment allows for faster tracking and rectification of issues, reducing the risk of reputation damage caused by service interruptions.
India Digital Banking Platform Market – Regional Insights
Geographically, the India digital banking platform market is segmented into North India, South India, East India, and West India. Among these, the Western region of the country dominates the India digital banking platform market. North India is, however, likely to become the potential market with a high CAGR over the forecast period. The growth of the market is being driven by the emergence of Fintech companies. Furthermore, increasing internet access is also providing lucrative growth opportunities to the market, thereby positively impacting the India digital banking platform market.
Impact of COVID-19 on India Digital Banking Platform Market
The India digital banking platform market witnessed tremendous growth after the COVID-19 pandemic outbreak. As the government imposed a nationwide lockdown to mitigate virus spread across the country, it restricted the accessibility of customers to banking services, hindering their activities. As a result, both customers and businesses rapidly shifted towards digital banking platforms, which significantly boosted the market growth.
Therefore, the COVID-19 pandemic has been a blessing in disguise for the India digital banking platform market, as it has accelerated the adoption of advanced technologies, such as cloud computing and machine learning. According to the Union Minister of State for Finance, Pankaj Chaudhary, India’s digital payments reached ₹4371.18 Crore (USD 585.88 million) in FY2020-21. Moreover, in August 2021, Razorpay announced that digital payment transactions have grown up 76% in the last 12 months. The growing volume of digital payments and the Indian government’s push towards becoming a cashless economy is projected to drive India digital banking platform market during the forecast period.
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India Digital Banking Platform Market – Competitive Landscape
The leading players in the India digital banking platform market are EdgeVerve Finacle, Oracle FLEXCUBE Core Banking, Tata Consultancy Services BaNCS, Wipro Core Banking As-a-Service, SAP Banking, and Financial Services, Temenos T24 Transact, C-Edge Technologies Ltd., NCR Corporation Digital Banking Solutions, Finastra Fusion Core Banking Software, Fiserv Banking Platform, and other prominent players.
The market is highly fragmented and competitive due to the presence of multiple technology giants as well as digital banking services startups. Due to increased investment and niche technology offerings, startups are giving industry giants a tough time. These companies consistently embrace advanced technologies, such as artificial intelligence (AI) and the Internet of Things (IoT) to analyze consumer behavior and expand their market reach. Furthermore, the adoption of competitive strategies, such as partnerships, mergers, acquisitions, joint ventures, etc., is also prominent in this market.
India Digital Banking Platform Market-Recent Developments
In December 2021, Indipaisa, a member of the Nexxo Network, an international network of Fintech companies operating in Middle East Asia and Europe, partnered with NSDL Payments Bank to launch a new Fintech platform targeting India’s flourishing 63 million SME sector. Indipaisa is also part of the Government of India and the Reserve Bank of India’s drive to digitize payments.
In December 2021, Jupiter, a Mumbai-based financial technology startup, raised USD 86 million funding in its latest funding round led by Tiger Global, QED and Sequoia Capital India. The largest bank in Japan, MUFG Bank Ltd., also participated in the latest funding round. Jupiter’s valuation has more than doubled to USD 711 million in its latest funding round. The company also announced that it has a customer base of more than half a million users, and that it is onboarding around 5,000 new users every day.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of India digital banking platform market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of the India digital banking platform market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.
Scope of the Report
|Years Considered||Historical data – 2018-2021|
|Base Year – 2021|
|Forecast Period – 2022-2028|
|Facts Covered||Revenue in USD Million|
|Market Coverage||North India, South India, East India, and West India|
|Product Service/Segmentation||By Component, By Banking Type, By Banking Mode, By Deployment Type, By Region|
|Key Players||EdgeVerve Finacle, Oracle FLEXCUBE Core Banking, Tata Consultancy Services BaNCS, Wipro Core Banking As-a-Service, SAP Banking and Financial Services, Temenos T24 Transact, C-Edge Technologies Ltd, NCR Corporation digital banking solutions, Finastra Fusion core banking software, Fiserv Banking Platform, and other prominent players.|
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