Digital banking sector set for explosive growth through 2024
A number of large, international telcos are already offering financial services to their customers, as part of a drive to broaden their product portfolio
A new industry study predicts that there will be more than 3.6 billion digital banking users by the year 2024, presenting a huge opportunity for companies that are able to diversify their service offering to include financial products and services.
The new study, published by Juniper Research, claims that the digital banking market will grow by 54 per cent over the next 4 years, from its current level of 2.4 billion.
“The new research, Digital Banking: Banking-as-a-Service, Open Banking & Digital Transformation 2020-2024, found that digital-only banks have gained market share from traditional banks by offering superior user experiences and tightly focused USPs. The research recommends that established banks must personalise the app experience; using AI‑based personal financial management tools to fight back against digital-only bank innovation,” a spokesman for Juniper Research said.
As telcos look to broaden their service offering away from traditional telecoms services, e-Banking and financial service provision could be a real money spinner for them.
Orange Group launched its digital banking service in Africa in 2017 and is now in the process of launching financial services and banking across its considerable European footprint.
Malaysia’s Axiata Group has also revealed that it intends to apply for a financial services licence later this year.
As telcos look to bring in new revenue streams to support their next generation network investments, banking and financial services could be a lucrative avenue for any telco agile enough to expand quickly into this space.