Report Overview

India Digital Banking Platform Market- Industry Trends & Forecast Report 2028

India digital banking platform market was worth USD 776.7 million in 2021 and is further projected to reach USD 1,485.5 million by the year 2028, growing at a CAGR of 9.8% in the forecast period (2022-2028). The flourishing fintech sector in the country and growing government initiatives to boost digitization in the economy are driving the growth of the India digital banking platform market appreciably over the last few years. Furthermore, the growing adoption of cloud computing and increasing focus on improved customer experience is anticipated to boost the India digital banking platform market during the forecast period. 

India Digital Banking Platform Market- Overview

Digital banking refers to the digitization of all aspects, programs, and activities undertaken by the banking sector. Digital banking platforms offer financial services exclusively online, as opposed to online banking which is dependent on traditional banking systems. Platforms such as these use technologies, such as process automation, web-based services, and APIs to create a digital banking system. In simple words, digital banking platforms leverage interactive channels to automate the delivery of traditional and modern-day financial products and services to end-users. Using digital banking platforms, users can access their financial data using desktop, mobile, and ATM services. These platforms enable banks to improve their business efficiency and add to the convenience of customers.

India Digital Banking Platform Market Forecast and Trends

Growth Drivers

Government Initiatives Boosting Digitization of India’s Banking Platform

The rapid digitization in India is significantly emerging as the major driving factor for the growth of the India digital banking platform. It is anticipated that the government initiative of Digital India, which is focusing on providing high-speed internet access in rural areas and developing secure and stable digital infrastructure, will expand the market's consumer base. Such initiatives are also driving the adoption of cloud infrastructure across various public sectors, which will provide growth opportunities for the digital banking platform across India.

Increasing Number of Smartphones and Rising Internet Accessibility Proving Favorable for India Digital Banking Platform Market

Based on a report published in Economic Times in October 2021, India is one of the leading markets for smartphones, with around 600 million smartphone users and 700 million internet users in the country. Low internet charges and the availability of low-cost smartphones are attributed to the major factors driving the demand for smartphones in the country. A growing number of smartphones, an increase in the number of internet banking users, and the need for all-in-one banking platforms are expected to boost the demand for all-in-one banking platforms during the forecast period, thereby propelling the India digital banking platform market forward.

Restraints

Limited IT Infrastructure and High Data-Security Concerns

India has a strong IT infrastructure but it is unevenly distributed. A major portion of the country lacks the legitimate infrastructure to expand and boost digital banking platforms in the country, which acts as a major restricting factor for the market. Furthermore, digital banking platforms carry high data security concerns. The high dependence of these platforms on technologies, such as cloud computing and the internet of things (IoT) exposes them to potential cyberattacks since data transmission through the network is considered extremely insecure.

Impact of COVID-19 on India Digital Banking Platform Market

The unprecedented COVID-19 pandemic brought immense growth opportunities to the India digital banking platform. Due to the lockdown and social distancing norms, a physical presence at traditional banks was restricted. Furthermore, businesses also became more reliant on the internet and digital payment platforms during the lockdown period to continue operating. These factors increased the appeal of digital banking platforms for businesses. Since rapid digitization is the only way to cope with both the COVID-19 pandemic and the social distancing norms, India's digital banking platform market is booming right now. Furthermore, the increasing adoption of fintech is also expected to drive market growth in the upcoming years.

India Digital Banking Platform Market - By Component

Based on components, the India digital banking platform market is segmented into platforms and services. The service segment is further classified into professional services and managed services. The platform segment accounts for the largest market share and is projected to register the highest growth rate as well in the forecast period. The platform segment is popular among customers as it provides higher data security, along with seamless and secure operations across applications and domains through secure applications.

India Digital Banking Platform Market - By Banking Type

Based on banking type, the India digital banking platform market is segmented into retail banking, corporate banking, and investment banking. The retail banking sector holds the largest market share because of the increasing internet accessibility among consumers along with the rising penetration of digital banking services among the general public due to higher security and better accessibility. On the other hand, the corporate banking segment is also projected to grow at a substantial rate due to the increasing adoption of digital banking platforms among small and medium-sized enterprises for improving business efficiency.

India Digital Banking Platform Market - Regional Insights

Geographically, the India digital banking platform market is segmented into North India, South India, East India, and West India. Mumbai, the country's financial capital, is located in Western India; therefore, the region dominates the India digital banking platform market. As a result, the dependence on digital banking platforms is increasing in this region. Moreover, states like Maharashtra and Gujarat are emerging as major driving forces for market development due to the growth of small and medium-sized businesses.

India Digital Banking Platform Market - Competitive Landscape

The leading market players of the India digital banking platform market are EdgeVerve Finacle, Oracle FLEXCUBE Core Banking, Tata Consultancy Services BaNCS, Wipro Core Banking As-a-Service, SAP Banking, and Financial Services, Temenos T24 Transact, C-Edge Technologies Ltd, NCR Corporation digital banking solutions, Finastra Fusion core banking software, Fiserv Banking Platform, and other prominent players.

The market is highly fragmented and competitive due to the presence of many technology giants as well as digital banking services startups. The startups are giving tough competition to industry giants with increasing investment and niche technology offering to customers. The companies are adopting advanced technologies such as artificial intelligence (AI), Internet of Things (IoT), etc., to study consumer behavior and expand their market presence. Furthermore, the adoption of competitive strategies such as partnerships, mergers, acquisitions, joint ventures, etc., is also prominent in this market.

Recent Development

• In December 2021, Razorpay, a leading payment processing and digital banking services company in India, announced to have raised USD 375 million from Lone Pine Capital and others in new funding round, at a valuation of USD 7.5 billion, doubling since its last funding round in April 2021.

Scope of the Report

By Component

• Platforms
• Services

1. Professional Services

• Consulting
• Implementation
• Support and Maintenance

2. Managed Services

By Banking Type

• Retail Banking
• Corporate Banking
• Investment Banking

By Banking Mode

• Online Banking
• Mobile Banking

By Deployment Type

• On-Premises
• Cloud

By Region

• North India
• South India
• East India
• West India

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Key Market Segments
2. Research Methodology
   1. Qualitative Research
   2. Methodology
   3. Regional Split of Primary & Secondary Research
   4. Secondary Research
   5. Primary Research
      1. Breakdown of Primary Research Respondents, By Region
      2. Breakdown of Primary Research Respondents, By Industry Participants
   6. Market Size Estimation
   7. Assumptions for the Study
   8. Market Breakdown & Data Triangulation
3. Executive Summary
4. Industry Insight and Growth Strategy
   1. Value Chain Analysis
   2. DROC Analysis
      1. Market Drivers
         1. Government Initiatives to Boost Digitization
         2. Increasing Number of Smartphones and Rising Internet Accessibility
      2. Market Restraints
         1. Limited IT Infrastructure
      3. Market Challenges
         1. High Data-Security Concerns
      4. Market Opportunity
         1. Rising Adoption of Digital Banking Platform Among SMEs
         2. Growing Mobile Banking Sector
   3. Recent Developments
   4. Porter’s Five Forces Analysis
      1. Bargaining Power of Buyers
      2. Bargaining Power of Suppliers
      3. Intensity of Rivalry
      4. Threat of New Entrants
      5. Threat of Substitutes
5. India Digital Banking Platform Market Overview
   1. Market Size & Forecast by Value, 2018-2028
   2. Market Size and Forecast, By Segment
      1. By Component
         1. Platforms
         2. Services
            1. Professional Services
               1. Consulting
               2. Implementation
               3. Support and Maintenance
            2. Managed Services
      2. By Banking Type
         1. Retail Banking
         2. Corporate Banking
         3. Investment Banking
      3. By Banking Mode
         1. Online Banking
         2. Mobile Banking
      4. By Deployment Type
         1. On-Premises
         2. Cloud
      5. By Region
         1. North India
         2. South India
         3. East India
         4. West India
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Market Share Analysis (2021)
   3. Competitive Benchmarking by Operating Parameters
7. Impact of COVID-19 on India Digital Banking Platform Market
8. Company Profiles (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
   1. EdgeVerve Finacle
   2. Oracle FLEXCUBE Core Banking
   3. Tata Consultancy Services BaNCS
   4. Wipro Core Banking As-a-Service
   5. SAP Banking and Financial Services
   6. Temenos T24 Transact
   7. C-Edge Technologies Ltd.
   8. NCR Corporation digital banking solutions
   9. Finastra Fusion core banking software
   10. Fiserv Banking Platforms
   11. Other Prominent Players
9. Key Strategic Recommendations

List of Figures

Figure 1: India Digital Banking Platform Market Segmentation

Figure 2: India Digital Banking Platform Market Value Chain Analysis,

Figure 3: Company Market Share Analysis, 2021

Figure 4: India Digital Banking Platform Market Size, By Value (USD Million), 2018-2028

Figure 5: India Digital Banking Platform Market Share (%), By Component, By Value, 2018-2028

Figure 6: India Digital Banking Platform Market Share (%), By Banking Type, By Value, 2018-2028

Figure 7: India Digital Banking Platform Market Share (%), By Banking Mode, By Value, 2018-2028

Figure 8: India Digital Banking Platform Market Share (%), By Deployment Type, By Value, 2018-2028

Figure 9: India Digital Banking Platform Market Share (%), By Region, By Value, 2018-2028

List of Tables

Table 1: India Digital Banking Platform Market Size, By Component, By Value, 2018-2028

Table 2: India Digital Banking Platform Market Size, By Banking Type, By Value, 2018-2028

Table 3: India Digital Banking Platform Market Size, By Banking Mode, By Value, 2018-2028

Table 4: India Digital Banking Platform Market Size, By Deployment Type, By Value (USD Million), 2018-2028

Table 5: India Digital Banking Platform Market Size, By Region, By Value (USD Million), 2018-2028

Table 6: EdgeVerve Finacle Financial Analysis

Table 7: EdgeVerve Finacle Business Overview

Table 8: Oracle FLEXCUBE Core Banking Financial Analysis

Table 9: Oracle FLEXCUBE Core Banking Business Overview

Table 10: Tata Consultancy Services BaNCS Financial Analysis

Table 11: Tata Consultancy Services BaNCS Business Overview

Table 12: Wipro Core Banking As-a-Service Financial Analysis

Table 13: Wipro Core Banking As-a-Service Business Overview

Table 14: SAP Banking and Financial Services Financial Analysis

Table 15: SAP Banking and Financial Services Business Overview

Table 16: Temenos T24 Transact Financial Analysis

Table 17: Temenos T24 Transact Business Overview

Table 18: C-Edge Technologies Ltd Financial Analysis

Table 19: C-Edge Technologies Ltd Business Overview

Table 20: NCR Corporation digital banking solutions Financial Analysis

Table 21: NCR Corporation digital banking solutions Business Overview

Table 22: Finastra Fusion core banking software Financial Analysis

Table 23: Finastra Fusion core banking software Business Overview

Table 24: Fiserv Banking Platforms Financial Analysis

Table 25: Fiserv Banking Platforms Business Overview