Market Size of Digital Banking in UK And USA

By Hyperlocal Cloud

July 03, 2023

Market Size of Digital Banking in UK And USA

Technology is spreading its roots in every industrial sector, and the banking industry is no exception. It is a sign that the world of traditional banking has ended. Technology in the banking sector has enhanced security and operational efficiency. With a few clicks, we can easily transfer money from one source to another, view our statements, track our spending, and connect with banking executives. Nowadays, most of the tasks are getting done from home only.

What Is the Digital Banking Market?

Digital banking is the modern way to do all chores of banking. It eliminates all the hustle we do in traditional banking. The shift from traditional to online or digital banking changes significantly over time. This blog will elaborate on the digital banking market size in the UK and USA and what could be the benefits of adopting digital banking for businesses.

Now it's time to understand the digital banking market size with some stats:

Digital Banking Market In The USA

The United States of America is a developed country with all its financial and economic sectors completed.

  • The digital banking market in the USA had a record $20.8 billion in 2021, and as per the digital setting foot in banking sectors of the USA.
  • It is anticipated to rise by 20.5% CAGR between 2022-2030.
  • The demand for digital banking in the USA is growing as requests for Artificial Intelligence, IoT, internet connectivity and smartphones increase.


Source: Grand View Research

As you can see above, the pandemic kick-started the demand for digital banking in the USA. Also, more people are using smartphones, forcing the banking industry to update with technology.

Digital Banking Market In The UK

As digital banks offer reliable, less time-consuming services, more than half of the UK people have associated with the digital banking system.

  • It is predicted that 5.3 million people in the UK will shift to digital banking by the end of 2023.
  • Back in the pandemic session 2020, 89% of eligible payments were contactless.
  • By the end of 2028, there will be new digital bank accounts of almost 22.6 million which is almost 43% audience in the UK.

The demo mentioned above shows how people are adopting the digital banking system in the UK. Hence, the digital banking market size in the UK is rising at its peak, and there would be many opportunities for business owners & entrepreneurs.

Image Source: Insider Intelligence

Features Of A Digital Bank Platform

Features in your Digital bank platform can help you to gain tremendous user insights and customer engagement. With this, you must ensure that your app is up-to-date with all contemporary features. Here we are listing a few of the features which must be embedded in your app:

Card Control System

With this feature, a card can be blocked temporarily or permanently, change the pin or even detect the location of the threat.

Transfer Funds

Users can check their account balance, transfer funds, pay bills, and even apply for loans or credit cards without visiting a bank branch.

Statement Control

Users can see a detailed breakdown of their transactions, filter them by date or category, and download statements for their records.

Money Transfers

Users can transfer funds from their checking account to their savings account or send money to a friend using their mobile banking app.

Online Bill Payments

Users can pay their utility bills, credit card bills, or even their rent from their digital banking platforms, saving time and effort.

Set a Monthly Budget

Users can categorize their expenses, set monthly budgets for different categories, and receive alerts when they exceed their budget limits.

Biometric Access

Users may be prompted to enter a one-time password sent to their mobile phones or authenticate their identity using biometric data before accessing their account.

Notification & Alert

Users will be aware through timely alerts on any type of transaction, offers, withdrawal of payment, banking management alert, and any changes.

Benefits Of Digital Banking Market

Whether you are a business person or a commercial trader, it has many benefits if you consider switching to digital banking. Now we are going to talk about some of the primary benefits offered by digital banking:

High Convenience

Digital banks come up with lots of conveniences. Adopting a digital bank allows you to bank from anywhere. It is compatible with every type of banking task regarding payment transactions, bill payments, opting for insurance, loan repayments, etc. Many mobile applications let you redeem your cheque via your mobile. Also, paying with cash is not a convenience anymore. With digital payment, there would be no need to keep the change every time.

Feature Rich

Features are an important part which associates with a digital banking app. Without features, it would be hard to beat traditional banking methods. Some important features in digital banks play a major role, including QR code payments, cheque deposits, bill payments, intelligent chatbots, accessible accounts 24/7, peer-to-peer payments, and fraud alerts. These features are enough to eliminate the old, hectic process of banking.

High Security

Security needs to be the top priority for any type of banking. People trust banks with all of their earnings and valuables. To sustain the trust of customers and privacy, security is a must feature that needs to be inbuilt into a digital banking application or solution. An absolute digital bank has antivirus & malware protection, firewalls, cookies, secure socket layers, and multi-factor authentications.

Cash-Free Transaction

Digital banking gives you a cash-free lifestyle. It eliminates the need to carry specific notes in a pocket, which has always been a tense part for us. With digital banking, you don’t have to worry whether you take the cash before stepping out from home. You can pay any amount at any time in return for goods. It is one of the very vast benefits of adopting digital banking.

How To Develop A High-End Digital Banking Service Platform?

A digital banking system can help you grow your business constantly if built correctly. So here we have discussed a high-end digital banking service platform development process:


The research process is important before jumping on the development process for your high-end digital banking solution. First, you need to write down the goal of your development, targeted audience, market research, competitor's activities, etc., to analyze what can happen next. Try to develop a market strategy that anyone hasn’t used before.


After completing the research process, you must concentrate on your objective and plan accordingly. In this step, you need to focus on some areas where you can put your business on the growth track, create opportunities for staff, and compete in the market. You have to create a detailed development plan, which will be your planning document for the future in case you need any changes.

UI/UX Prototype

After completing the planning process, it’s time to get your prototype or blueprint of your digital banking system ready. Ensuring navigation, charts, a tech stack, functionalities, a dashboard, and other animations is mandatory in this prototype. This process will reflect the logic and structure of your digital banking platform. So if it takes time, have patience.

Right Tech Stack

The tech stack for your digital banking development depends on what type of goal and vision you have. So consider choosing the right front-end and back-end technology for your platform. You can also get an industry-level white-label banking application solution with already-equipped functionalities and features.


Now that you know the benefits of digital banking and how to develop a solution, it’s time to participate in this revolutionary era of digitalization. As you move towards a digital banking ecosystem, there are certain features that you should have in your app. Focus on these features and implement them in your bank platform. Digital banking is vital to a person’s life and can also be used to make big business money. You must have a fraud management solution at the core of your digital banking platform. The ideal solution to fraud management is multi-layered and involves a multi-faceted approach.

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