Banks, Digital Wallets and CBDCs

The market for digital wallets is predominantly dominated by FinTech and BigTech players. Traditional banks have indeed been slow to catch up. Despite this, the market is expected to grow significantly, with the number of digital wallet users projected to exceed 5.2 billion globally by 2026.

So, if you are a traditional bank - what should you do?

I believe, one viable strategy is to focus on Central Bank Digital Currencies (CBDCs). By influencing central banks to issue retail CBDCs through their established banking networks, traditional banks can offer a secure and trusted digital wallet solution. This approach could be the key for traditional banks to make a significant comeback in the digital wallet space and remain relevant to their retail customers.