According to a recent study from market research firm Graphical Research, the Europe digital banking server market size is set to register a significant growth during the forecast timeframe, owing to the increasing investment made in the fintech sector to digitise the banking applications. Several research and development activities have gone into creating digital innovations in the banking sector.
The COVID pandemic has also played a crucial role in the growth of the digital banking market across Europe. This is because financial transactions through various digital mediums gained massive momentum during this period. Digital mode of payment has led to banking operations moving forward in a seamless manner.
Corporate clients of banks have different bank accounts for different purposes. And to serve all their needs equally well, it is important for banks to give convenience of transactions top priority. Thanks to digitization, banks today offer a single-window portal to all their corporate clients to conduct their transactions.
Mergers and acquisitions of start-ups in the fintech sector in Europe are also major drivers of the digital banking market in the region. They are done with the object of creating a single doorway for all digital transactions for their customers. For example, American-based digital payment and financial services company Square Inc. acquired Verse, another payment startup based in Spain. The main aim behind this acquisition was to expand Square Inc.’s operations and presence in Europe.
The young population of Europe is growing up in a fast-paced digital environment, where products and services are increasingly becoming virtual. This has made them more tech-savvy in nature and they prefer to use digital payment platforms over traditional ones. This has acted as a major positive influence on the growth of the digital banking market in the region.
The way Europeans shop has also seen a sea-change as more and more people are finding it easier to shop online, thanks to the obvious benefits attached to online shopping. This has made online businesses flourish and now they are finding new ways to keep shoppers hooked to their sites. Since online shopping is growing, digital payment platforms have seen incredible growth as well.
Transactional services like online fund transfers are reported to see monumental growth in their market share; this form of transactional service already holds 35% of the market share as of 2019, according to reports. The reason for this growth is cited as the smartphone revolution. More and more people today are using their smartphones for faster and more secure online transfers. Due to this facility, customers do not have to wait in long queues to transfer money from one place to another.
Several traditional banks today are going digital with their products and services not only to survive but to also outperform their competitors. Numerous banks are acquiring various fintech start-ups as they are the first ones to get hold of the latest technologies in the banking sector. Banks want to leverage these technologies to increase their market size and share. More and more banks today are relentlessly working towards providing pleasant and convenient banking experience to increase their customer base.
Some of the important players in the digital banking market in Europe are Appway AG, CREALOGIX, BNY Mellon, Fidor Solutions AG, NETinfo Plc, Temenos AG, Worldline, and many others.