Following a period of rapid digital innovation, the global digital banking market is now maturing, shifting from developing and implementing new features to reevaluating banking services and improving user experience (UX), a new Deloitte study found.

The Digital Banking Maturity 2024 report, released in October, surveyed 349 banks in 44 countries to understand the state of digital banking around the world and offer a comprehensive analysis of how banks are evolving in the digital era.

A shift toward redefining existing offerings

The report compares its findings with the previous 2022 edition, revealing a noticeable stagnation in the adoption of new functionalities in banking apps. Instead of focusing solely on introducing new functionalities, banks are now placing greater emphasis on refining existing features and enhancing the overall user experience, the study found.

This shift is particularly evident among “Digital Champions” – those excelling in digital innovation, seamless customer journeys and real-time services – which are redesigning customer interaction channels and expanding relationship ecosystems, especially in areas like investment services.

Overall, the study found that remote, digital onboarding is now common practice across the sector. However, Digital Champions are going the extra mile by adding user-centric features such as information on the application status, real-time validation and a “save and finish later” option.

According to the report, this strategy aims to generate outstanding value for customers, offering them with a full range of key banking operations and fulfilling all financial needs. It aligns with the growing importance of customer experience as a key differentiator.

The rise of super-apps

The report identifies another dominant approach that banking leaders are adopting. In this strategy, banks are focusing on adding many new functionalities and to provide comprehensive “super applications”. These platforms streamline end-to-end remote product offerings while enabling users to manage various aspects of their financial lives in one place.

According to the study, Digital Champions are largely leading this revolution, providing savings and investment solutions 2.5 times more frequently than their competitors. Additionally, many top players are integrating fully digital cash loans into their standard services, and an increasing number are extending their digital capabilities to mortgage products.

Some of these apps have gone a step further, expanding beyond traditional banks to include a range of features such as mobility services, insurance options, and real estate tools, enabling customers to manage various aspects of their lives via a single platform. By providing an all-in-one solution, these institutions aim to keep users engaged within the app for more than just financial tasks, enhancing customer loyalty and convenience.

According to the report, this approach has gained prominence in the Middle East and Asia, where Digital Champions are now offering such services 2.5 times more often than other banks, with significant differences seen in healthcare (6.5x) and public services (5.9x).

Real-estate, personal financial management to improve customer engagement

The research found that banks are also innovating in mortgage lending by introducing real estate marketplaces. These marketplaces are designed to facilitate home purchase, as part of the mortgage process and the only marketplace available, or they can make part of a bigger property-related ecosystem.

Banks are also actively seeking new methods to improve customer engagement, introducing personal financial management functionalities and enhancing financial knowledge and awareness. These strategies aim to increase the duration and frequency of mobile app usage. They also create cross-selling opportunities, further driving customer interaction and loyalty.

According to the report, Europe is the global leader in digital banking, with the highest number of Digital Champions at 17.

In the European neobank sector, the UK’s Revolut leads the market with 50 million customers, followed by Wise with 12.8 million, Bunq with 10 million customers, Monzo with 9.7 million, and N26 with 8 million, according to Statista.

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