3bn digital banking users by 2021 – half of the adult population

Nearly 3bn users will have access to retail banking services through smartphones, tablets, PCs and smartwatches by 2021, Juniper Research reveals, up 53% from 2017. “Usage will continue to rise as consumers increasingly opt for banks offering the convenience of rapid, multi-channel digital services,” the research firm says.

This means that banks will need to focus on providing a more frictionless digital banking experience to their customers, especially if they are to remain market leaders.

„Technology is currently the big differentiator for all types of banks; including traditional banks and the so-called challenger banks. Investments in banking technology reached record levels in 2016 and traditional banks are expected to focus on digital transformation initiatives”, explains Juniper Research author Nitin Bhas.

Juniper predicts that in 2017, big banks will acquire challenger players including tech start-ups and digital-only banks, and this will further accelerate the rollout of traditional players’ digital strategy.

The Digital Transformation in Banking Readiness Index analysed leading global tier-1 banks to evaluate their digital transformation readiness scores and highlight their respective positioning within the digital innovation roadmap.

It identified the leading banks for digital transformation in the sector: Banco Santander, Bank of America, Barclays, BBVA, BNP Paribas, Citi, HSBC, JP Morgan Chase, RBS, Société Générale, UniCredit and Wells Fargo. These banks scored highly and were found to be progressing rapidly towards the final stages of digital transformation. These players have invested heavily in technology, have excellent digital portfolios, and are already witnessing significant cost savings.

Source: Juniper Research