USD 9.96 billion
Core Banking Software Market Size, Share, Growth Analysis, By Solution(Deposits, Loans, Enterprise Customer Solutions, Others), By Service(Professional Service, Managed Service), By Deployment(Cloud, On-premises), By End Use(Banks, Financial Institutions, Others), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45E2199 |
Region:
Global |
Published Date: October, 2024
Pages:
157
|Tables:
92
|Figures:
76
Core Banking Software Market Insights
Global Core Banking Software Market size was valued at USD 10.7 billion in 2022 and is poised to grow from USD 11.68 billion in 2023 to USD 23.63 billion by 2031, growing at a CAGR of 9.20% during the forecast period (2024-2031).
A core banking system is a software that is used to process the daily transactions taking place. These keep a track of the banking transactions and post updates to the accounts and other financial records. These are designed in such a way that they help in modernizing the bank’s core software and further help in progressing the bank towards its digital transformation. With the rapid development in technology and the increased usage of cloud-based systems, the demand for core banking systems will be increasing in the future as these cloud-based systems allow the banks to monitor the transactions that are taking place.
During the wake of the pandemic as most of the offices were forced to shut down and with the beginning of work from home, the earlier methods to capture the financial transaction were not as effective, hence there was a need for better and improved software for processing the transaction. This led to a slight dip in the market during the pandemic, but the key market players immediately started investing in the development of advanced software, as capturing the transactions is a vital process and needs to be constantly carried out with great efficiency. This led to the growth of the global core banking software market and will further continue in the forecast period.
US Core Banking Software Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
SaaS/Hosted
Fastest Growth
SaaS/Hosted
Growth Rate
9.3% CAGR
Global Core Banking Software Market, 2021-2028 ($ Bn)
Country Share for North America Region- 2021 (%)
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Core Banking Software Market Segmental Analysis
Global Core Banking Software Market is segmented by Solution, Service, Deployment, End Use, and region. Based on Solution, the market is segmented into Deposits, Loans, Enterprise Customer Solutions, and Others. Based on Service, the market is segmented into Professional Service, and Managed Service. Based on Deployment, the market is segmented into Cloud, and On-premises. Based on End Use, the market is segmented into Banks, Financial Institutions, and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.
Core Banking Software Market Analysis by Deployment
In 2021, the SaaS segment held the largest share in the global core banking software market. Due to the rapid technological advancements and the ease of data storage and usage, most organizations are shifting to cloud-based storage systems for the ready availability of data. With this, the investment in SaaS solutions has increased as the demand for real-time calculations for various financial purposes including interests is increasing, which is facilitated by these solutions, therefore, their demand in the current time is increasing and is expected to continue during the forecast period.
Furthermore, with the increase in public domain cloud solutions, there is an increase in security breaches which is resulting in the organizations opting for licensed solutions that provide security while processing the transactions. There, this segment is also expected to see substantial growth during the forecast period.
Core Banking Software Market Analysis by Banking Type
In 2021, the large banking segment held the largest share in the global core banking software market. This is owing to the factor that there are rapid advancements in the connectivity and internet, and there is a rise in demand for devices that are connecting the banking sector to the audience, further increasing the penetration. This will further boost the growth of the segment during the forecast period.
Following this, the community banking segment is expected to observe the highest growth during the forecast period owing to the fact that there is a need for efficient and better banking systems in small regions and local areas with the increase in digitization and automation processes the need for efficient banking purposes is also increasing and will continue to do so during the forecast period.
Core Banking Software Market Analysis by End User
In 2021, the corporate banking segment held the largest share in the global core banking software market. This was owing to the rapid digitization and automation that is taking place in the sector. Furthermore, with better internet connectivity people have largely adopted the use of digital transactions, especially during the wake of the Covid-19 pandemic. This is further expected to boost the growth of the corporate banking segment during the forecast period.
The wealth management segment held the largest share in the global core banking software market. Due to the increase in automation and digitization, the need for better management is also increased, which is further boosting growth of the global core banking software market. Furthermore, the high-end clients are in need of these solutions as their finance need to be better managed and there are efficient methods being developed, which will further boost the market growth during the forecast period.
Global Core Banking Software Market By Deployment , 2021(%)
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Core Banking Software Market Regional Insights
North America dominated the global core banking software market in 2021 and is expected to continue to do so during the forecast period. This is owing to the growing need for efficient banking solutions and presence of prominent banks in this region, such as HSBC that will further require more development in the software development regarding banking solutions. Due to Covid-19 pandemic, there was a shift from the normal working routine to the work from home and hybrid work culture, therefore more efficient ways of monitoring the finances were needed to be developed, which provided a significant push to the market and will continue the same during the forecast period.
Following this, the Asia-Pacific region is expected to see the largest growth rate owing to rapid launch of new businesses along with rise in employment in the region that has resulted in an increase in the need for efficient banking solutions. Also, as mentioned above, this region is also facing drastic changes in the technology sector, which is expected to boost the growth of the global core banking software market in the present time and will continue to do so during the forecast period.
Global Core Banking Software Market By Geography, 2021 - 2028
- Largest
- Fastest
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Core Banking Software Market Dynamics
Core Banking Software Market Driver
- Due to the rapid technological developments various platforms have been integrated for efficient working of organizations. This includes the cloud-based technology that has been incorporated in most organizations, which further makes it easier for SaaS solutions that are required to process various kinds of transactions that are taking place. This will boost the global core banking software market during the forecast period.
- With the increase in population, there is a rapid surge in people being employed, furthermore, with this, the demand for people using bank accounts has increased, which has resulted in an increase in demand for safety concerns to avoid fraudulent activities among the population for various transactions that are taking place in an organization. This will also boost the growth of the global core banking software market.
Core Banking Software Market Restraint
- With the high usage of core banking software, there is rising concern among the people for their privacy and some of the transactions taking place are on public domain cloud systems that are not well protected hence, these are not considered safe by the users. Therefore, this can be a hindrance to the growth of the global core banking software market.
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Core Banking Software Market Competitive Landscape
Global core banking software market is relatively fragmented, with a high level of competition. The prominent players operating in the market are constantly adopting various growth strategies to stay afloat in the market. There is high competition in the market, which is resulting in the key players investing a lot in the development of various software that will be accepted by the users at large.
Top Players in Global Core Banking Software
- Capgemini (France)
- FIS (US)
- Fiserv, Inc. (US)
- HCL Technologies Limited (India)
- Infosys Limited (India)
- Jack Henry & Associates, Inc. (US)
- Oracle Corporation (US)
- Temenos Group (Switzerland)
- Unisys (US)
- SAP SE (Germany)
- NCR Corporation (US)
- TCS BaNCS (India)
- Intellect Design Arena (India)
- Liferay, Inc. (US)
- Mambu (Germany)
- Bankware Global (US)
- ThoughtWorks (US)
- Ellucian (US)
- Cenique (US)
- Temenos AG (Switzerland)
- Deloitte (US)
- Nucleus Software (India)
Core Banking Software Market Recent Developments
- In April 2022, Financial technology pioneer FIS announced that the FIS Modern Banking Platform is now accessible on the Microsoft Azure cloud platform, enabling financial institutions in new regions including the UK, Thailand, and New Zealand to offer digital online banking. The solution blends a contemporary, cloud-native core with the most recent developments in cloud security, monitoring, resiliency, and operational analytics.
- In February 2022, Leader in financial technology FIS announced that the purchase of Atlanta-based Payrix has strengthened its embedded payments strategy. This purchase is in line with FIS's objective to broaden the use of its e-commerce solutions by businesses of all sizes and across all sectors by integrating payment processing into Software-as-a-Service (SaaS) platforms.
Core Banking Software Key Market Trends
- The banking business is evolving due to the increasing usage of technologies like AI, big data, and the cloud. These technologies are incorporated into the banking process to improve visualization capabilities, respond to client inquiries, and make complex data understandable. These technologies support improved communication while offering cutting-edge security measures in banks and other financial institutions.
- The AI-based core banking software offers end-users real-time insights and contributes to network security improvements, acceleration of digital companies, and improved customer experiences. The increasing use of these technologies is anticipated to open up a number of opportunities for market participants. To introduce cutting-edge solutions built on foundational technologies, including AI and others, key corporations concentrate on concluding partnerships and collaborations with other players.
Core Banking Software Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected utilizing Primary Exploratory Research backed by the robust Secondary Desk research.
According to our global core banking software market analysis, in terms of deployment, the SaaS solutions segment held the largest market share in the year 2021, because of its ability to readily process transactions and carry out various calculations. By end-user, corporate banking held the largest share in the global core banking software market, owing to rising technological advancements resulting in an increase in the banking solutions provided. By banking type, the large banking segment held the largest market share in the year 2021 and will continue to do so during the forecast period. By region, the largest market share was held by the North American region owing to the presence of prominent banks in the region hence increasing the demand for effective banking solutions.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 10.7 billion |
| Market size value in 2031 | USD 23.63 billion |
| Growth Rate | 9.20% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Core Banking Software Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Core Banking Software Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Core Banking Software Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Core Banking Software Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Core Banking Software Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Core Banking Software Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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