Banking Digital Services 2026 Market Insights™

May, 2026

This report identifies key demand-side trends in the banking industry that can help enterprises fine-tune their digital strategies. It also provides an overview of enterprise challenges in the banking industry based on Avasant’s assessment.

Why read this Market Insights?

Banking enterprises are reimagining customer engagement for digitally native consumers, shifting to digital‑first models across the banking life cycle. They are deploying Gen AI and agentic AI across core value streams—from credit memo generation and loan origination to intelligent KYC/AML workflows and real‑time fraud detection. In parallel, banks are investing in real‑time payments enablement and composable orchestration platforms. They are modernizing legacy cores through cloud‑native side‑core and dual‑core architectures. Additionally, banks are embedding compliance‑by‑design into digital platforms, leveraging AI‑driven regulatory intelligence and automated transaction monitoring to strengthen operational resilience.

The Banking Digital Services 2026 Market Insights™ aids enterprises in the banking sector in identifying important market trends and challenges for any digital project they participate in.

Methodology

The industry insights presented in this report are based on the following: our ongoing interactions with enterprise CXOs and other key executives; targeted discussions with service providers, subject matter experts, and Avasant Fellows; analyst insights from primary and secondary research; and lessons learned from consulting engagements.

Table of contents

About the report (Page 3)

Executive summary (Pages 5–9)

    • Scope of coverage
    • Banking digital services value chain
    • Key banking trends shaping the industry
    • In this report’s companion study, Banking Digital Services 2026 RadarView, 30 service providers were recognized

Banking digital services state of the market (Pages 10–16)

    • New-age digital expectations are reshaping banking engagement models toward digital-first servicing and selective human intervention
    • Rapid Gen AI and agentic AI adoption is transforming banking operations from customer servicing to autonomous workflow orchestration
    • Legacy core constraints are driving adoption of composable, cloud-native, and side-core architectures to improve agility and ecosystem integration
    • Rising demand for instant payments and cross-border interoperability is driving real-time, multi-rail payment modernization
    • Escalating financial crime and regulatory complexity are driving banks to strengthen cyber resilience and compliance capabilities
    • Embedded finance, digital banking, and real-time payment ecosystems are driving financial inclusion beyond traditional banking channels

Key contacts (Page 17)


Read the Research Byte based on this report. Please refer to Avasant’s Banking Digital Services 2026 RadarView™ for detailed insights on the service providers and supply-side trends.

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DISCLAIMER:

Avasant’s research and other publications are based on information from the best available sources and Avasant’s independent assessment and analysis at the time of publication. Avasant takes no responsibility and assumes no liability for any error/omission or the accuracy of information contained in its research publications. Avasant does not endorse any provider, product or service described in its RadarView™ publications or any other research publications that it makes available to its users, and does not advise users to select only those providers recognized in these publications. Avasant disclaims all warranties, expressed or implied, including any warranties of merchantability or fitness for a particular purpose. None of the graphics, descriptions, research, excerpts, samples or any other content provided in the report(s) or any of its research publications may be reprinted, reproduced, redistributed or used for any external commercial purpose without prior permission from Avasant, LLC. All rights are reserved by Avasant, LLC.

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