According to the report by Expert Market Research (EMR), the global mobile banking market is projected to grow at a CAGR of 13.4% between 2024 and 2032.
Aided by the rising adoption of smartphones and the inclusion of advanced features in smartphones, the market is expected to grow significantly by 2032.
After two consecutive years of declines, global smartphone shipments is projected to grow 5% YoY in 2024 to reach 1.23 billion units, according to the latest forecast from Counterpoint’s Market Outlook Service.
This is an upward revision from the previous forecast of under 4% YoY growth, as macroeconomic conditions and consumer sentiment continue to improve.
As the positive momentum is projected to continue in the coming years, the banking sector has been listed as a top beneficiary of the smartphone boom, with more customers leveraging the smarts devices to explore new banking possibilities.
EMR defined Mobile banking as a service that allows consumers to conduct financial transactions remotely using a mobile device.
According to the report, “This service encompasses a wide range of activities, including fund transfers, bill payments, account management, and investment services, all accessible through dedicated banking apps or mobile web browsers.
“The convenience of conducting banking operations anytime and anywhere has not only attracted a vast pool of users but also significantly enhanced customer satisfaction and loyalty, fuelling the mobile banking market expansion.”
The report further identifies several key factors as catalysts that contribute to the expansive mobile banking market growth.
It said: “Firstly, the widespread adoption of smartphones and internet services across the globe has laid the foundation for mobile banking’s success.
“The integration of advanced technologies such as blockchain, artificial intelligence (AI), and machine learning (ML) in mobile banking apps has further enhanced security, personalised banking experiences, and introduced innovative features, such as voice-activated transactions and predictive analytics.”
It also identified the COVID-19 pandemic as a factor that has accelerated the transition towards digital banking solutions, as lockdown measures and social distancing norms have prompted consumers and financial institutions to rapidly adopt and expand mobile banking services.
This shift, it said, is expected to have a long-lasting impact on consumer behaviour, with a significant portion of the population likely to continue using mobile banking services even after the pandemic.
Another significant driver aiding the mobile banking market expansion, according to the report, is the growing focus on financial inclusion.
“Mobile banking has proven to be an effective tool in reaching unbanked and underbanked populations, particularly in emerging economies.
“By offering accessible and affordable banking services, mobile banking plays a crucial role in integrating these segments into the formal financial system, thus promoting economic growth, and reducing inequality.”
The global mobile banking market encompasses a diverse range of regional markets, each with unique characteristics and growth drivers.
