Blockchain In Retail Banking Market Size, Share & Trends Analysis Report By Deployment, By Enterprise, By Application, By Region, And Segment Forecasts, 2021 To 2028

The global blockchain in retail banking market is expected to witness significant growth over the forecast period. Continued digitalization, the increasing internet penetration rate, and subsequently, the growing adoption of blockchain technology for KYC/ID fraud prevention and risk scoring are expected to drive the growth of the market over the forecast period. The ability of blockchain technology to execute the transactions without the need for a central authority, and the increasing adoption of blockchain technology to facilitate faster, real-time cross-border payments are also expected to contribute to the growth of the market.

Several banks are investing aggressively in developing innovative products as part of the efforts to expand the product portfolio and enhance customer experience. For instance, in April 2018, Santander Bank, N. A., a retail and commercial bank, announced the launch of Santander One Pay FX, an international payment service that uses blockchain-based technology. The new service allowed customers to accomplish international money transfers either on the same day, in many cases, or by the next day. At the time of the launch, the service was available for retail customers in the U.K., Spain, Brazil, and Poland; and the bank was looking forward to adding more countries in the coming months.

Blockchain In Retail Banking Market Segmentation

The demand for enhanced banking platforms is growing as customers are increasingly demanding seamless access to loan services and products. Growing loan applications can make it difficult for banks, particularly those with a limited workforce, to process all requests within the stipulated timeframe. At this juncture, the adoption of blockchain-based technologies in retail banking can potentially help banks in expediting the lending process and disbursing personal loans to a larger pool of customers in an efficient and secure manner.

Several market players in the blockchain in retail banking market are focusing on venture capital investments to raise funding for enhancing the product portfolio and cementing the market position. These investments are expected to create new opportunities for the growth of the market over the forecast period. For instance, in February 2021, Axoni, a blockchain infrastructure provider, raised USD 31 million in a funding round from new investors, such as Deutsche Bank, Intel Capital, and UBS. Existing investors, including Nyca Partners, HSBC, Goldman Sachs, J.P. Morgan, Wells Fargo, and Citi, also participated in the funding round. The funding would be utilized for the expansion of the company’s network across different regions and asset classes.

The key players in the market include Accenture, Cognizant, Microsoft, Axoni, and Bitfury Group Limited. These market players are pursuing various growth strategies, such as strategic partnerships, mergers & acquisitions, and new product development, to expand their market presence. For instance, in July 2019, Bitfury Group Limited announced a collaboration with Provident Bank, a bank based in the U.S. The collaboration envisaged Provident Bank using Bitfury Group Limited’s Crystal blockchain analytics platform for anti-money laundering services. The collaboration was also aimed at ensuring that Provident Bank’s new clients had fully compliant AML procedures.