North America digital banking platform market in is expected to grow from US$ 1,006.3 Mn in 2018 to US$ 2,766.3 Mn by the year 2027. This represents a CAGR of 12.1% from the year 2018 to 2027. The evolving architectures and advanced features of today's cloud platforms are boosting the adoption of cloud-based solutions in each and every industry verticals, including banking and financial sector. Presently, cloud-based digital banking platform solutions are being adopted by various banks due to low initial investments and fast updates offered by these solutions; and this trend is anticipated to grow during the forecast period of 2019 to 2027 in the digital banking platform market. With investment in cloud-based digital banking platform solutions, banks are anticipated to reduce their operational costs, enhance customer experience, thus increasing productivity and revenues. The complexity and high investment of on-premise solutions is another reason that is boosting the demand for cloud-based digital banking platforms. In addition to this, the growing digital revolution is further fueling the growth of the digital banking platform market.
Digital transformation or digitization of businesses refers to the integration of digital technology in various business processes, organizational activities, and business models. End-to-end business process optimization, increased operational efficiency, improved customer experience, and reduced costs are few of the factors driving the digital transformation in the banking industry. The increasing digital transformation revolution in banking industry presents a massive opportunity for digital banking platform providers as they enable banks to launch digital services faster and enhance the customer experience. In addition to this, the proliferation of smart devices, easy availability of internet, the advancement of IoT, and artificial intelligence have been increasing exponentially which is further leading to the increasing need of mobile/digital-first strategy among banks. The paradigm shift of banks from traditional channels to digital and automated channels results in multiple benefits ranging from improved efficiency to reduced cost and increased revenue opportunities. Thus digital transformation across BFSI sector is acting as a major driver for digital banking platform market.
The North America digital banking platform market is fragmented with the presence of several companies, and the competitive dynamics in the market is expected to change during the upcoming years. The companies present in the digital banking platform market are focusing on providing advanced solutions to gain a significant share of the digital banking platform market.
The North America digital banking platform market by deployment type is segmented into on-premise and cloud. The on-premise model enables flexible local control of servers and security to the businesses. The on-premise deployment type provides a considerable benefit for digital banking platforms by allowing organizations to preserve all their processes and current internal systems. Organizations can easily leverage present hardware investments whereas also providing their employees with a pure cloud-like file sharing and access experience. Though, it is expensive and complex to manage in comparison to other cloud deployment type, as it is deployed within the facility and needs regular maintenance. On-premise is installed and deployed on the premises of the organization. This deployment type demands an enterprise to purchase licensed software before using it. In on-premise, the resources are deployed within the IT infrastructure of the company and are merely responsible for maintaining and performing all operations associated with the software.
The overall North America digital banking platform market size has been derived using both primary and secondary source. The research process begins with exhaustive secondary research using internal and external sources to obtain qualitative and quantitative information related to the North America digital banking platform market. It also provides an overview and forecast for the North America digital banking platform market based on all the segmentation provided with respect to the North America region. Also, primary interviews were conducted with industry participants and commentators in order to validate data and analysis. The participants who typically take part in such a process include industry expert such as VPs, business development managers, market intelligence managers, and national sales managers, and external consultant such as valuation experts, research analysts, and key opinion leaders specializing in the digital banking platform industry. Some of the players present in digital banking platform market Appway AG, Backbase, CREALOGIX Holding AG, EdgeVerve Systems Limited, Fiserv, Inc., nCino, Inc., Oracle Corporation, SAP SE, Sopra Steria, Tata Consultancy Services, Limited (TCS), Temenos Headquarters SA among others.