The Global Mobile Banking Market size is expected to reach $5.7 billion by 2031, rising at a market growth of 16.5% CAGR during the forecast period.
The banking sector in Europe is undergoing a digital transformation driven by technological advancements, changing consumer preferences, and regulatory initiatives such as the Revised Payment Services Directive (PSD2). Consequently, the Europe region would acquire nearly, 30% market share by 2031. Banks and financial institutions are investing in digital banking solutions, including banking apps, to meet the growing demand for convenient, accessible, and innovative banking services.
The major strategies followed by the market participants are Acquisitions as the key developmental strategy to keep pace with the changing demands of end users. For instance, in February, 2024, HSBC announced the acquisition of Silicon Valley Bank's UK subsidiary. The acquisition strengthens HSBC's commercial banking franchise and enhances its ability to serve innovative and fast-growing firms, particularly in the technology and life science sectors, in the UK and globally. Moreover, in July, 2023, BNP Paribas announced the acquisition of Kantox, a leading fintech specializing in the automation of currency risk management. The acquisition is part of BNP Paribas' Growth Technology Sustainability 2025 plan, aiming to enhance technological innovations, customer experience, and capabilities for clients.
Traditional brick-and-mortar bank branches require substantial investments in real estate, construction, maintenance, and staffing. Furthermore, this banking streamlines various banking processes, such as account management, transaction processing, and customer support. Thus, cost efficiency for banks and consumers is propelling the market’s growth.
The market is fiercely competitive, with traditional banks, fintech firms, and tech giants battling for supremacy. Innovations like mobile check deposits and AI-driven services are key battlegrounds. Strong emphasis on security, user experience, regulatory compliance, and global expansion define strategies in this dynamic and rapidly evolving industry.
The banking sector in Europe is undergoing a digital transformation driven by technological advancements, changing consumer preferences, and regulatory initiatives such as the Revised Payment Services Directive (PSD2). Consequently, the Europe region would acquire nearly, 30% market share by 2031. Banks and financial institutions are investing in digital banking solutions, including banking apps, to meet the growing demand for convenient, accessible, and innovative banking services.
The major strategies followed by the market participants are Acquisitions as the key developmental strategy to keep pace with the changing demands of end users. For instance, in February, 2024, HSBC announced the acquisition of Silicon Valley Bank's UK subsidiary. The acquisition strengthens HSBC's commercial banking franchise and enhances its ability to serve innovative and fast-growing firms, particularly in the technology and life science sectors, in the UK and globally. Moreover, in July, 2023, BNP Paribas announced the acquisition of Kantox, a leading fintech specializing in the automation of currency risk management. The acquisition is part of BNP Paribas' Growth Technology Sustainability 2025 plan, aiming to enhance technological innovations, customer experience, and capabilities for clients.
Cardinal Matrix - Market Competition Analysis
Based on the Analysis presented in the Cardinal matrix; JPMorgan Chase & Co. is the forerunner in the Market. In May, 2023, JP Morgan Chase acquired California-based First Republic Bank. The acquisition complements JPMorgan Chase's wealth strategy. Companies such as HSBC Holdings plc, Wells Fargo & Company and BNP Paribas S.A. are some of the key innovators in Market.
Market Growth Factors
With people leading increasingly busy lives, there is a growing preference for services that can be accessed anytime, anywhere. Moreover, this banking eliminates the need for customers to visit physical bank branches or ATMs for routine transactions. Therefore, increasing demand for convenient products and services drives the market’s growth.Traditional brick-and-mortar bank branches require substantial investments in real estate, construction, maintenance, and staffing. Furthermore, this banking streamlines various banking processes, such as account management, transaction processing, and customer support. Thus, cost efficiency for banks and consumers is propelling the market’s growth.
Market Restraining Factors
This banking involves transmitting sensitive financial information over networks, which can make it vulnerable to data breaches and hacking attempts. Likewise, mobile devices are susceptible to malware infections and other malicious software that can compromise the security of banking applications. Hence, security concerns related to this banking are impeding the market’s growth.By Platform Analysis
Based on platform, the market is divided into Android, iOS, and others. The iOS segment attained a 25% revenue share in the market in 2023. iOS devices like iPhones and iPads are generally associated with a more affluent user base. Users of iOS devices often have higher disposable incomes and greater purchasing power, making them attractive customers for financial institutions offering premium banking services and products.
By Transaction Analysis
On the basis of transaction, the market is segmented into consumer-to-business and consumer-to-consumer. In 2023, the consumer-to-consumer segment attained a 20% revenue share in the market. The availability of peer-to-peer (P2P) payment apps integrated into banking platforms has significantly contributed to the growth of the C2C segment. These apps enable users to transfer funds directly to friends, family members, or acquaintances using their mobile devices, eliminating the need for cash or checks.By Regional Analysis
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America region witnessed 34% revenue share in the market in 2023. North America has one of the highest smartphone penetration rates globally, with a significant portion of the population owning smartphones. The widespread adoption of smartphones provides a robust foundation for banking usage, as consumers increasingly rely on their mobile devices for various activities, including banking.Market Competition and Attributes
The market is fiercely competitive, with traditional banks, fintech firms, and tech giants battling for supremacy. Innovations like mobile check deposits and AI-driven services are key battlegrounds. Strong emphasis on security, user experience, regulatory compliance, and global expansion define strategies in this dynamic and rapidly evolving industry.
Recent Strategies Deployed in the Market
- Feb-2024: BNP Paribas came into partnership with Orange, France's largest telecommunications company. Under the partnership, BNP Paribas would offer its services to Orange Bank's customers in France and Spain.
- Feb-2023: Wells Fargo & Company launched LifeSync, a personalized digital tool for its Wells Fargo Mobile app for Wealth & Investment Management (WIM) clients. LifeSync aims to align clients' financial goals with their money, providing a convenient and intuitive digital experience.
- Nov-2022: HSBC Holdings plc (HSBC) signed an agreement to fully acquire L&T Investment Management Limited (LTIM), a mutual fund company. The acquisition aids HSBC in its strategy of becoming a leading wealth manager in Asia.
- Aug-2022: J.P. Morgan took over Global Shares, a leading provider of cloud-based share plan management software. This acquisition strengthens J.P. Morgan's position as a top provider of employee ownership solutions globally.
- Jun-2021: JPMorgan Chase signed an agreement to acquire Nutmeg Saving and Investment Limited, a prominent digital wealth manager in the UK. The acquisition complements JPMorgan's digital bank launch in the UK under the Chase brand, focusing on customer experience and innovative wealth management solutions.
List of Key Companies Profiled
- Mitsubishi UFJ Financial Group, Inc. (Mitsubishi group)
- JPMorgan Chase & Co.
- Wells Fargo & Company
- BNP Paribas S.A.
- American Express Company
- HSBC Holdings plc
- UBS AG (UBS Group AG)
- CAPITAL ONE FINANCIAL CORPORATION
- The Bank of America Corporation
- Citigroup Inc.
Market Report Segmentation
By Platform- Android
- iOS
- Others
- Consumer-to-business
- Consumer-to-consumer
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 4. Competition Analysis - Global
Chapter 5. Global Mobile Banking Market by Platform
Chapter 6. Global Mobile Banking Market by Transaction
Chapter 7. Global Mobile Banking Market by Region
Chapter 8. Company Profiles
Companies Mentioned
- Mitsubishi UFJ Financial Group, Inc. (Mitsubishi group)
- JPMorgan Chase & Co.
- Wells Fargo & Company
- BNP Paribas S.A.
- American Express Company
- HSBC Holdings plc
- UBS AG (UBS Group AG)
- CAPITAL ONE FINANCIAL CORPORATION
- The Bank of America Corporation
- Citigroup Inc.
Methodology
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