Just over half (53%) of the world's population will access digital banking services in 2026 reaching over 4.2 billion digital banking users, from 2.5 billion in 2021.

The new Juniper research study, called ‘Digital Banking: Banking-as-a-Service, Market Transformation & Forecasts 2021 2026', identified that China will be the largest digital banking market over the next five years, accounting for almost 25% of digital banking users in 2026.

The research recommended that banks better integrate their many offerings into a single, consistent digital experience, to better compete with diverse competition.

Juniper Research's Digital Transformation in Banking Readiness Index analysed 30 leading Tier 1 banks on their innovation in terms of digital features, investment and innovation, as well as on their agility in terms of size, profitability and brand strength, in order to evaluate their digital transformation readiness and highlight their respective positioning.

It also identified what it categorised as the leading group of banks for digital transformation:

  • Bank of America
  • HSBC
  • JPMorgan Chase
  • BBVA
  • DBS Bank

It said Bank of America offered an ever-expanding digital platform, including the Erica chatbot, and has recorded significant upticks in digital usage and engagement during the pandemic.

JPMorgan Chase had experimented with blockchain and made acquisitions, such as that of wealth manager Nutmeg in the UK to boost its offerings.

While HSBC had launched innovative new solutions, such as HSBC Kinetic for small businesses in the UK, with BBVA launching initiatives including cryptocurrency trading and DBS Bank having high levels of digital engagement.

Research co-author Damla Sat said: "These banks have progressed with well-planned and executed digital transformation strategies, and other banks need to build similarly broad and revolutionary roadmaps, or be left behind by more agile competitors."

Subscribe to International Investment's free newsletter