30+ Digital Banking Statistics For Actionable Information

Modern customers expect faster, more diverse service options for digital banking. An omnichannel experience is now a must-have element for providing flexible services across multiple communication channels.

Technology and people’s expectations go hand in hand. It’s like Newton’s third law of motion, which states that for every action, there’s an equal and opposite reaction. For every technological action, people have equal and opposite reactions. Digital banking platforms are at the forefront of this technological action, making it easier for banks to host various financial services.

People have reacted in various ways. Explore the statistics below to learn about the future of digital banking.

Key digital banking statistics

The statistics below show the increasing influx of digital banks in the modern market. They provide superior, more cost-effective services than their traditional counterparts.

• China, the world's second-largest economy, is projected to attain a market size of $4.6 billion by 2026, with a compound annual growth rate (CAGR) of 19.9% during the analysis period. 

• Japan and Canada are among the other noteworthy geographic markets; each is forecasted to grow at 11% and 13.1%, respectively, from 2021 to 2026. 
• Germany is projected to grow at approximately 14.5% CAGR in Europe. At the same time, the rest of the European market will reach $5.2 billion by 2026. 
• Approximately 295.5 million digital banking users are in India, surpassing the U.S. by over 70 million. 

Traditional banking vs. digital banking

Traditional banks usually require a visit to a physical branch to access your account. Conversely, online banks operate without physical locations; all interactions must occur digitally. 

Due to reduced operational costs associated with physical infrastructure, online banks can offer benefits such as lower fees and higher rates of return.

Let’s look at competing statistics to unpack traditional and digital banking facts.

Key digital banking trends

Consumer interactions toward digital banking are causing significant changes in banking operations. Many banks have reduced their branch staff according to customer traffic; some have even closed their branches. The access that digital banking services offer is just too appealing for busy customers.

The trends below tell the same story.

• Digital banking users in the United States are projected to grow year-over-year to nearly 217 million by 2025. 

• The reduction of 18% in branch staff per customer aligns with customer expectations of visiting branches less often. 
• In a significant shift toward online banking, HSBC Bank in the United Kingdom (UK) plans to close over 10% of its branches – 69 out of 510. 

Digital banking usage statistics

According to a Businesswire report from 2021, 5% of consumers prefer non-traditional financial services like digital-only banks and stand-alone digital accounts as primary service providers. The table below discusses consumers' preferences for digital-only banks according to age.

• The United States, Canada, Japan, China, and Europe will drive an estimated 13% CAGR in the global investment banking sector. 
• China is expected to remain among the fastest-growing in this cluster of regional digital banking markets. The Asia-Pacific market, including India, Australia, and South Korea, is forecasted to reach $615.6 million by 2026.
• Bank of America leads with over 30 million active mobile app users and over 40 million online banking customers.

Online banking statistics

Online banking refers to accessing various banking features and services through your bank's website from your computer. You can check balances, pay bills, and access additional features, like loan or credit card applications, through the banking portal. Read up on the key statistics in this area to discover where the industry is heading.

• Online chat technology, which connects customers to a human customer service representative, has a satisfaction rate of 66%. In contrast, only 26% of customers are satisfied with chatbots.
• 77% of Canadians, 71% of US inhabitants, and 69% of Spanish customers use their online banking services at least monthly. 

Mobile banking statistics

Mobile banking involves using apps on mobile devices, like smartphones or tablets, to access many of the same banking features. The bank provides these apps where you have an account, and you typically use the same login credentials as your online banking portal.

The statistics below discuss the benefits of mobile banking, its competitive advantage, and its grand entrance onto the scene.

• A recent survey indicates an exceptionally high adoption rate among digital banking users, with 89% of customers using their mobile devices for banking operations. Among millennials, this number rises even further to 97%.  

• In the first quarter of 2023, 63% of bank account holders processed banking matters on their smartphone or tablet. 
• Experts foresee mobile payments will grow at a CAGR of 29% from 2020 to 2027, reaching an estimated $8.94 trillion.
  

AI in banking statistics

Artificial intelligence (AI) is rapidly transforming the banking industry, bringing benefits in several key areas. AI is making banking faster, more efficient, and more secure for banks and their customers. As AI technology develops, we expect to see even more innovative applications emerge in the banking sector. Read about some key statistics in this field.

• AI can automate 20% of banking and financial activities.
• AI could cut operational costs for banks by 22% around 2030.
• 54% of financial service providers view chatbots as a way to transform the customer experience.
• AI-based fraud detection in banking is projected to reach $68.6 million by 2026.

• AI in the banking market is expected to grow at a CAGR of 28.58% from 2021 to 2026.
• 83% of banking executives believe AI and digital banking make banks more vulnerable to cyber threats.
• Banks using AI have witnessed a 34% increase in their revenues.

Digital banking scam, fraud, and security statistics

Digital banking is prone to cyber threats. In 2023, the Reserve Bank of India (RBI) reported bank frauds amounting to over 302.5 billion Indian Rupees. With massive digital transactions, traditional fraud or scam monitoring services need to catch up to the modern cybersecurity challenges banking institutions face. 

• JP Morgan's annual payments fraud survey revealed a concerning 10% increase in card-related frauds, while businesses generally reported lower volumes of digital trickery.
• In 2023, medium-tech fraud exploits that previously plagued fintech are becoming more approachable for fraud teams. US lenders experienced a 1% drop in automated bot attacks for the first time.

• In 34% of cases, fraud occurs on a confirmed account on the user’s device, showing that the old-fashioned method of simply stealing things is still a standard.
• While 91% of all respondents prioritize lower fees and convenience, these are slightly less important than the security of accounts and funds (96%) and the privacy of personal information (93%).
• 95% of US account holders trust banks to safeguard their personal information on digital banking platforms.
  
  

Moving toward a digitally charged future

Online banking offers numerous advantages over most traditional banks. Customers get the ease of accessibility, personalized experiences, and, most importantly, flexibility. 

Although security tactics need more work, digital banking platforms are on their way to bridging any gap between modern customers and the complex banking sector.

Learn more about the rise of digital transformation in banking.

This article was originally published in 2023. It has been updated with new information.