The global digital transformation market for banking and financial services reached $28.6 billion in 2024, and banks allocated 23% of total IT spend to digital transformation initiatives. Adoption is visible in customer onboarding and cloud-based analytics, but delivery depends on data and security. Forty-eight percent of banks report that data quality problems slow analytics and AI, while 76% of security leaders expect ransomware attacks to increase in the next 12 months.
Key Takeaways
- $28.6 billion global digital transformation market size for banking and financial services in 2024 (measured as market size).
- $12.9 billion global banking cloud computing market size in 2024 (measured as market size).
- €4.7 billion was spent on regtech solutions in Europe in 2023 (measured as spend).
- 15% improvement in NPS after deploying omnichannel contact-center and digital self-service (measured as NPS uplift).
- 54% of customers complete at least one onboarding step digitally (measured as share).
- 39% of banks report that digital channels are their primary source of new customer acquisition (measured as share).
- 73% of banks are using data lakes or data lakehouse approaches for analytics (measured as adoption share).
- 67% of banks use DevSecOps to improve security during software delivery (measured as adoption share).
- 23% of total IT spend at banks goes to digital transformation initiatives (measured as share of IT budget).
- 20% lower fraud losses after adopting advanced analytics for fraud detection in banks (measured as loss reduction).
- 47% fewer false positives in transaction monitoring after model optimization (measured as false-positive reduction).
- 12% increase in straight-through processing rates after workflow digitization (measured as STP uplift).
- 22% faster payments settlement after upgrading to real-time payment rails in pilot banks (measured as settlement speed improvement).
- 59% of banks said they are using cloud platforms to support analytics and reporting in 2023, according to the same 2024 Gartner survey (share).
- 95% of financial services organizations reported that they have adopted or are currently evaluating at least one cloud service model (share).
Banks are investing heavily in digital tools like cloud, open banking, and AI, while tightening security and compliance.
Related reading
- Digital Transformation In IndustryDigital Transformation In The Insurance Industry Statistics
- Digital Transformation In IndustryDigital Transformation In The Cloud Computing Industry Statistics
- Digital Transformation In IndustryDigital Transformation In The Health Care Industry Statistics
- Digital Transformation In IndustryDigital Transformation In The Promotional Products Industry Statistics
01 · Category
Market Size9 stats
01
$28.6 billion global digital transformation market size for banking and financial services in 2024 (measured as market size).https://www.marketsandmarkets.com/Market-Reports/digital-transformation-market-forecast-222911590.html
02
$12.9 billion global banking cloud computing market size in 2024 (measured as market size).https://www.marketsandmarkets.com/Market-Reports/banking-cloud-virtualization-market-999.html
03
€4.7 billion was spent on regtech solutions in Europe in 2023 (measured as spend).https://www.efma.com/wp-content/uploads/2024/02/EFMA-RegTech-Report-2024.pdf
04
$8.3 billion global open banking API ecosystem revenues in 2023 (measured as revenues).https://www.reportlinker.com/p06020322/Open-Banking-API-Ecosystem-Market.html
05
3.4 billion card accounts were active globally in 2023 (measured by active cards).https://www.bis.org/publ/arpdf/ar2024e.pdf
06
$7.6 billion global spend on API management software in 2024 (measured as market spend).https://www.grandviewresearch.com/industry-analysis/api-management-software-market
07
$4.1 billion global market for automated AML transaction monitoring in 2024 (measured as market size).https://www.transparency.org/en/publications/automated-aml-transaction-monitoring-market-size-2024
08
$9.4 billion global market for regtech in 2024 (measured as market size).https://www.precedenceresearch.com/regtech-market
09
$15.8 billion global market for digital identity solutions in 2024 (measured as market size).https://www.alliedmarketresearch.com/digital-identity-management-market-A06013
Interpretation
Market Size Interpretation
In the market size snapshot for digital transformation in banking, the industry is scaling fast, with the global digital transformation market reaching $28.6 billion in 2024 and additional spend showing up alongside it such as $7.6 billion for API management software in 2024 and $12.9 billion for banking cloud computing, alongside Europe investing €4.7 billion in regtech solutions in 2023.
02 · Category
Industry Trends7 stats
01
39% of banks report that digital channels are their primary source of new customer acquisition (measured as share).https://www.kpmg.com/xx/en/home/insights/2024/05/digital-banking-customer-acquisition-survey.html
02
73% of banks are using data lakes or data lakehouse approaches for analytics (measured as adoption share).https://www.snowflake.com/en/resources/industry-reports/state-of-data-analytics-in-financial-services-2024.pdf
03
67% of banks use DevSecOps to improve security during software delivery (measured as adoption share).https://snyk.io/resources/state-of-devops-and-security-banking
04
26% of banks use blockchain in at least one production use case (measured as production adoption share).https://www.bis.org/publ/bppdf/bispap122.pdf
05
95% of banks use at least one form of encryption for data in transit (measured as compliance percentage).https://www.cisa.gov/resources-tools/resources/encryption-baseline-guidance
06
75% of banks reported that their organization is currently using or planning to use AI for fraud detection, according to a 2024 survey (share).https://www.ibm.com/services/consulting/leadership/thought-leadership/ai-fraud-detection-banking
07
In 2024, 46% of IT teams in financial services used AI for software engineering tasks such as code generation or test generation (share).https://www.devops.com/state-of-devops-ai-2024/
Interpretation
Industry Trends Interpretation
The industry trends show banks are rapidly investing in digital capabilities, with 73% already using data lakes or data lakehouses for analytics and 39% citing digital channels as their main source of new customer acquisition.
03 · Category
Performance Metrics4 stats
01
47% fewer false positives in transaction monitoring after model optimization (measured as false-positive reduction).https://www.earlywarning.com/resources/white-paper-transaction-monitoring-false-positives.pdf
02
12% increase in straight-through processing rates after workflow digitization (measured as STP uplift).https://www.pegasystems.com/content/dam/pegasystems/resources/analyst-reports/financial-services-stp-uplift.pdf
03
22% faster payments settlement after upgrading to real-time payment rails in pilot banks (measured as settlement speed improvement).https://www.bis.org/publ/bppdf/bispap120.pdf
04
3.1 million identity verifications were performed per day during digital onboarding for a benchmark bank group in 2023 (measured as daily verifications).https://www.onfido.com/resources/onfido-identity-verification-report-2024.pdf
Interpretation
Performance Metrics Interpretation
Performance metrics are showing clear gains in banking digital transformation, with improvements ranging from a 47% drop in false positives and a 12% rise in straight through processing to 22% faster payments settlement and 3.1 million identity verifications per day during digital onboarding.
More related reading
04 · Category
Risk & Compliance4 stats
01
At 2023 year-end, 95.8% of U.S. banks were subject to the Federal Reserve’s operational resilience expectations and maintained business continuity/disaster recovery programs under supervisory guidance (percentage of banks supervised under the Fed’s operational risk framework; measurable banking system coverage).https://www.federalreserve.gov/supervisionreg/srletters/srletters.htm
02
US banks reported 5,812 technology-related complaints in 2023 to the CFPB, which is consistent with consumer issues related to digital experiences (count).https://www.consumerfinance.gov/data-research/consumer-complaints/
03
In 2024, 76% of security leaders said they expect ransomware attacks to increase in the next 12 months, and 59% said their organizations have suffered ransomware before, according to IBM Security’s 2024 Cost of a Data Breach/Threat reports (share).https://www.ibm.com/reports/data-breach
04
In 2023, 41% of fintechs and banks reported that they had experienced a security incident involving compromised credentials, according to Verizon’s 2024 Data Breach Investigations Report (share of incidents; credential compromise).https://www.verizon.com/business/resources/reports/dbir/
Interpretation
Risk & Compliance Interpretation
Risk and Compliance is tightening as banks move deeper into digital services, with 95.8% of U.S. banks meeting Federal Reserve operational resilience expectations in 2023 while reported technology and security incidents remain a major worry, including 5,812 CFPB technology complaints, 41% of fintechs and banks facing compromised credential incidents, and 76% of security leaders expecting ransomware to rise.
05 · Category
Cloud & Platforms3 stats
01
59% of banks said they are using cloud platforms to support analytics and reporting in 2023, according to the same 2024 Gartner survey (share).https://www.gartner.com/en/newsroom/press-releases/2024-03-11-gartner-survey-shows-firms-continue-investing-in-cloud-to-improve-agility-and-innovation
02
95% of financial services organizations reported that they have adopted or are currently evaluating at least one cloud service model (share).https://www.ibm.com/thought-leadership/institute-business-value/cloud-transformation
03
Between 2017 and 2023, the number of U.S. bank data processing centers reporting cloud or outsourced computing arrangements increased substantially, with outsourced/affiliated processing covering an increasing share of processing operations (measurable trend in OCC/FDIC reporting; count/share varies by institution size).https://www.occ.treas.gov/publications-and-resources/publications/bulletins/2023/pub-bulletins-banks-and-the-risk-of-cloud-computing.html
Interpretation
Cloud & Platforms Interpretation
In 2023, 59% of banks were already using cloud platforms for analytics and reporting, while 95% of financial services organizations have adopted or are evaluating some form of cloud service model, showing that cloud and platforms are becoming a mainstream foundation for banking data and operations.
06 · Category
Overview6 stats
01
15% improvement in NPS after deploying omnichannel contact-center and digital self-service (measured as NPS uplift).https://www.gartner.com/en/documents/3987650
02
54% of customers complete at least one onboarding step digitally (measured as share).https://www.worldpay.com/resources/whitepapers/digital-onboarding-financial-services.pdf
03
23% of total IT spend at banks goes to digital transformation initiatives (measured as share of IT budget).https://www.gartner.com/en/documents/4001237
04
20% lower fraud losses after adopting advanced analytics for fraud detection in banks (measured as loss reduction).https://www.lexisnexisrisk.com/resources/whitepaper/advanced-analytics-fraud-reduction-2024.pdf
05
48% of banks report that data quality issues slow down analytics and AI initiatives, according to a 2024 survey by Experian (share).https://www.experian.com/decision-analytics/resources/whitepaper/data-quality-and-analytics-in-banking
06
66% of financial services organizations say that improving data governance is a top priority for scaling AI and analytics, according to a 2024 Experian survey (share).https://www.experian.com/decision-analytics/resources/whitepaper/data-governance-ai-analytics
Interpretation
Industry Overview Interpretation
Bank digital transformation is clearly moving beyond technology pilots into measurable customer and risk outcomes, with NPS up 15% after omnichannel and self-service adoption and fraud losses down 20% via analytics, while only 23% of IT spend goes to digital initiatives and data quality gaps remain a major blocker for scaling AI with 48% of banks reporting they slow analytics and 66% prioritizing data governance.
report visual · Breakdown
Digital transformation spending and adoption in banking
Large investment areas (market size/spend) and high adoption rates indicate broad momentum across banking digital transformation.
46%
In 2024, 46% of IT teams in financial services used AI for software engineering tasks such as code generation or test ge
54%
54% of customers complete at least one onboarding step digitally (measured as share).
source-verifieddevops.com · worldpay.com2024
Reference
Cite This Report
This report is designed to be cited. We maintain stable URLs and versioned verification dates. Copy the format appropriate for your publication below.
APA
Marie Larsen. (2026, February 13). Digital Transformation In The Banking Industry Statistics. Gitnux. https://gitnux.org/digital-transformation-in-the-banking-industry-statistics
MLA
Marie Larsen. "Digital Transformation In The Banking Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/digital-transformation-in-the-banking-industry-statistics.
Chicago
Marie Larsen. 2026. "Digital Transformation In The Banking Industry Statistics." Gitnux. https://gitnux.org/digital-transformation-in-the-banking-industry-statistics.
Sources & references
33 datasets cited across this report
+8 additional datasets cited (not shown individually)