Mobile banking is on the rise and could overtake online banking as the most widely used digital banking platform, according to Allied Market Research.

The Digital Banking Platform Market revealed the online banking segment held the highest market share in 2023 by mode, capturing nearly 75% of the global digital banking platform market revenue.

This growth was driven by a growing preference for digitization and automation, along with increased adoption of fintech and technology-supported financial services.

However, the mobile banking segment is projected to see the highest growth between 2023 and 2032, potentially surpassing online banking as the most popular mode of digital banking.

Technological advancements in mobile banking, including real-time personalized customer service via smart bots and the increasing use of mobile devices for instant assistance, are fueling growth.

The report also found that by type, the retail banking segment held the highest market share in 2023, accounting for almost two-thirds of the global digital banking platform revenue.

The report attributed the growth to a surge in the customer base who are willing to shift towards online methods of banking because it provides easy and convenient access to banking services.

According to Allied Market Research, the increase in internet penetration also globally contributes to this segment's growth.

Overall, the report estimated that the digital banking platform market was valued at $30.4 billion in 2023 and is projected to reach $168.3 billion by 2032.

A surge in the number of Internet users, the shift from traditional to online banking and the rising demand for personalized banking services have contributed to its growth.

However, security and compliance issues in digital banking platforms, lack of digital literacy in emerging countries and technical concerns associated with new technology integration and legacy systems continue to hinder the market growth.