Blockchain in Banking and Financial Services Global Market Report 2024

The blockchain in banking and financial services market size has grown exponentially in recent years. It will grow from $4.61 billion in 2023 to $7.12 billion in 2024 at a compound annual growth rate (CAGR) of 54.6%. During the historical period, growth in the blockchain sector stemmed from escalating demands for swift, real-time fund transfers, increased reliance on digital banking services, robust economic expansion in emerging markets, and amplified government initiatives.

The blockchain in banking and financial services market size is expected to see exponential growth in the next few years. It will grow to $27.69 billion in 2028 at a compound annual growth rate (CAGR) of 40.4%. In the forecast period, expect growth from blockchain adoption in banking and cryptocurrency use. Major trends include blockchain in insurance, asset servicing integration, mergers, and digital currencies.

The expanding use of cryptocurrency is a key driver for the growth of the blockchain in banking and financial services market. Cryptocurrency, a decentralized digital payment system, operates on a peer-to-peer network, eliminating the need for traditional banking verification of transactions. Utilizing encryption for security, cryptocurrency enables global, instantaneous transactions without physical presence. Transactions are recorded on a public ledger called blockchain, maintained and updated by currency holders. The creation of cryptocurrency units involves mining, a process utilizing computer power to solve complex mathematical problems. As per a November 2021 survey by Pew Research, the majority of U.S. adults are aware of cryptocurrencies, with 16% reporting investment or usage. The rising prevalence of cryptocurrency usage is anticipated to fuel the growth of the market.

The surge in the adoption of blockchain technology within the banking sector stands out as a primary catalyst for market expansion. Blockchain, a transformative technology with substantial potential, promises to reshape banking operations profoundly. While current blockchain applications in banking are limited, the technology is poised for widespread integration. Blockchain facilitates secure and inclusive business networks, streamlined processes, cost reduction, and the introduction of innovative products and services in banking. It expedites the issuance of digital securities, ensuring shorter timelines, lower costs, and increased customization. For instance, Deloitte's 'Global Blockchain Survey' emphasizes the financial services industry's need to embrace blockchain and digital assets for economic growth. Approximately 96% of financial services pioneers view blockchain as a scalable solution, with 73% expressing concerns about losing a competitive edge without adoption. Moreover, 76% believe that digital assets will replace fiat currencies within the next five to ten years. The banking sector's increasing adoption of blockchain technology is poised to be a key driver for market growth.

The implementation of blockchain technology in the banking and financial services sector is significantly driven by its ability to mitigate fraud. Leading companies in the industry are increasingly adopting blockchain to combat fraudulent activities, leveraging features such as smart contracts. Smart contracts enable the creation of conditional contracts, ensuring that each step is verified before the subsequent one is executed. Blockchain's role extends to validating every aspect of the supply chain, offering security through non-repudiation and disintermediation in data storage, preventing the misappropriation of company assets. A notable example is the collaboration between IntellectEU and KPMG, resulting in the development of the ClaimShare solution. This solution utilizes enterprise blockchain, R3 Corda, and R3's Conclave software technology, enabling confidential computing for insurers to share claim information securely.

The banking and financial services sector is witnessing a trend of mergers and acquisitions aimed at diversifying business lines, expanding geographical reach, and building comprehensive portfolios with increased capital efficiency. In a notable instance, Indian private lenders ICICI Bank, HDFC Bank, and Axis Bank increased their stake in blockchain technology by merging into IBBIC Pvt Ltd in July 2021. This strategic move involved each bank acquiring a stake of approximately 5.55%, contributing to the digitization and automation of inter-organizational trade finance processes in India using the Infosys Finacle Connect platform. Another significant acquisition occurred in December 2021 when Deutsche Borse, a Germany-based capital market company, acquired a majority stake in Crypto Finance AG for $108.6 million. This acquisition expanded Deutsche Borse's digital asset offering, providing direct entry points for investments and post-trade services, as Crypto Finance AG specializes in blockchain financial services for crypto asset management.

In June 2021, Deutsche Borse, a German capital market company, acquired a majority stake in Crypto Finance AG for $108.6 million. This move allowed Deutsche Borse to broaden its digital asset offerings, enabling direct investment access and post-trade services. Crypto Finance AG, based in Switzerland, specializes in blockchain financial services for crypto asset management.

Major companies operating in the blockchain in banking and financial services market report are SAP SE, Amazon Web Services, IBM, Accenture PLC, Oracle Corporation, ConsenSys, Hewlett Packard Enterprise, Bitfury Group Limited, Infosys, Auxesis Services & Technologies (P) Ltd., DigitalX, Power Ledger, Data61ANZ, Westpac, Lapits, Indra Capital, Hashcash Consultants, L&T Infotech, Hyperlink InfoSystem, Moontek, EvaCodes, Innowise Group, Infograins, Trust Alliance Information Development Inc., Ltd., Shangha, Tech Exactly, Chimpare, SoluLab, Blockchain.com, Elliptic, Zamna, Adhara, Argo Blockchain, Everledger, Travala.com, Coinfirm, Unicsoft, Aspired, ELEKS, Labrys, NaNLABS, Amaris, Say Digital I/O, Artezio, CodeInside, Crypton Studio, IT Test, EVEN Lab, Evrone, Around25, Pixelette Technologies Ltd., RebelDot, Zitec, Agile Freaks, Altasoft Software Solutions, WebitFactory, Microsoft Corporation, Intel, JPMorgan Chase & Co, Akamai Technologies Inc., AlphaPoint, BitOasis, Pyypl, Zone, Gath3r, MidChains, HAYVN, DEFiYIELD, MenaPay, Light Protocol, Afriex, BitPesa, Bitsoko, BTCGhana, Luno, Ice3X, GeoPay, Dash, BitSure, Sava, Standard Bank, Chankura, PayFast.

North America was the largest region in the blockchain in banking and financial services market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the blockchain in banking and financial services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the blockchain in banking and financial services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The primary blockchain types include public blockchain, private blockchain, and others. Public blockchain, which operates without permission, enables participants to engage and conduct transactions, with each participant having a ledger copy. Blockchain finds applications in managing fund transactions, facilitating real-time loan funding, liquidity management, and more.

The blockchain in banking and financial services market research report is one of a series of new reports that provides blockchain in banking and financial services market statistics, including blockchain in banking and financial services industry global market size, regional shares, competitors with a blockchain in banking and financial services market share, detailed blockchain in banking and financial services market segments, market trends and opportunities, and any further data you may need to thrive in the blockchain in banking and financial services industry. This blockchain in banking and financial services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The blockchain in the banking and financial services market includes revenues earned by entities by offering public blockchain, private blockchain, and other blockchain services for banking and financial services. Blockchain offers a form of digitalized, decentralized public record of all transactions. Blockchain was designed to record everything of value and not just transactions. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.