Online banking is an essential component of today's eCommerce industry, as the two are closely inter-related. eCommerce is the process of buying and selling goods and services via the Internet. It includes a number of financial service types, such as routine banking and funds transfer.
By 2021, nearly 3 billion financial services customers will access retail banking via their smartphones, media tablets, PCs and smartwatches -- that's up by 53 percent from this year, according to the latest market study by Juniper Research.
Digital Banking Market Development
The study found that online usage will continue to rise as consumers increasingly opt for banks offering the convenience of rapid, multi-channel digital services.
This means that banks will need to focus on providing a more frictionless digital experience to their customers, especially if they are to remain market leaders.
Juniper analysts discovered that while traditional banks have so far remained a step behind in delivering innovation and maintaining their competitive edge against new fintech players, the situation is gradually changing.
"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," said Nitin Bhas, head of research at Juniper Research.
Juniper predicts that in 2017, big banks will acquire challenger players including tech-startups and digital-only banks, and this will further accelerate the rollout of traditional players’ digital strategy.
Juniper's ‘Digital Transformation in Banking Readiness Index’ analyzed leading global tier-1 banks to evaluate their digital transformation readiness scores and highlight their respective positioning within the digital innovation roadmap.
The readiness index 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
According to the Juniper Research assessment, 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.