Blockchain In Retail Banking Market Expected to Reach $40.4 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Blockchain In Retail Banking Market," The blockchain in retail banking market was valued at $1.4 billion in 2021, and is estimated to reach $40.4 billion by 2031, growing at a CAGR of 40.4% from 2022 to 2031.

Blockchain technology has significantly increased transparency between market participants. Blockchain implementations has promoted the creation of a public record of activity in the ecosystem to which all market participants have access in real time. Furthermore, rise in penetration of smartphones across the globe and development of the banking industry in emerging countries are the major blockchain in retail banking market trends. However, storage issues of blockchain databases hamper the blockchain in retail banking market growth.

Furthermore, the global blockchain in retail banking market is in its developing phase, and exhibits high growth potential, due to rise in need for operational efficiency & transparency during retail banking and surge in demand for customized digitalized payment options globally. For instance, in June 2021, Oracle Financial Services Software Ltd (ORCL.NS), a unit of Oracle Corp (ORCL.N), partnered with financial technology provider Everest to bring blockchain to banks worldwide to enhance their product offerings. This collaboration meant that Oracle'sbank clients would be able to verify a customer's credentials and transfer them to the blockchain platform in different countries.

By organization size, the large enterprises segment acquired major share blockchain in retail banking market in 2021. This is attributed to the fundamental benefits that blockchain can provide to large enterprises, that include decentralization of the entire business process, and the ability to proof transactions, and data security.

Region wise, North America dominated the blockchain in retail banking market share in 2021. This is attributed to the growing adoption of block chain technology for KYC/ID fraud prevention and risk scoring, as well as the growing internet penetration rate among the banking industry in the region.

The demand for blockchain in retail banking has increased considerably during the COVID-19 pandemic. This is attributed to increased familiarity toward digital banking among consumers and initiatives by governing bodies across the globe are to curb the spread of virus by initiating various policies for retail banking. Moreover, blockchain in retail banking market is expected to be intact by economic downturn, and is anticipated to remain high during the blockchain in retail banking market forecast period. Thus, these factors promoted the growth of the blockchain in retail banking industry during the pandemic situation.     

Key Findings of the Study

• By component, the solution segment led the highest blockchain in retail banking market share, in terms of revenue in 2021.
• On the basis of deployment mode, the cloud segment is expected to exhibit the fastest growth rate during the forecast period.
• Region wise, North America generated the highest revenue in 2021 in blockchain in retail banking market size.  

The key players operating in the blockchain in retail banking market analysis include IBM Corporation, Amazon Web Services Inc., Microsoft, SAP SE, Goldman Sachs, Oracle, Bitpay, Cegeka, Bitfury Group Limited, and Intel Corporation. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.