USD 28.33 billion
Third-Party Banking Software Market Size, Share, Growth Analysis, By Product(Core Banking Software, Omnichannel Banking Software, Business Intelligence Software, Wealth Management Software), By Deployment(On-premise, and Cloud), By Application(Risk Management, Information Security, and Business Intelligence), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45E2156 |
Region:
Global |
Published Date: March, 2024
Pages:
197
|Tables:
91
|Figures:
65
Third-Party Banking Software Market Insights
Global Third-party Banking Software Market size was valued at USD 28.33 billion in 2022 and is poised to grow from USD 30.48 billion in 2023 to USD 54.77 million by 2031, growing at a CAGR of 7.60% during the forecast period (2024-2031).
The rapid expansion of the banking, financial services, and insurance (BFSI) industry driven by economic growth acts as a prominent growth catalyst. Furthermore, the incorporation of diverse cloud-computing services, encompassing databases, networking, and analytics, into banking software is also augmenting industry growth. As customers increasingly favor conducting transactions and managing accounts through smartphones and computers, the demand for third-party banking software is set to rise. The adoption of advanced analytical tools such as big data analytics positively impacts growth by efficiently processing large data sets for informed decision-making and market trend identification. Given the data-centric nature of the banking sector, integrating third-party software with various analytical tools enhances data management.
Additionally, there is a discernible shift from traditional to computerized methods for financial transaction tracking and bookkeeping, further bolstering the third-party banking software market. This transition aligns with the banking industry's pursuit of process standardization and core banking systems, thereby propelling market expansion.
The increasing necessity to enhance operational efficiency and productivity within the banking sector fuels the global third-party banking software market. Banking procedures have undergone substantial transformation, necessitating tailored operational approaches. Over recent years, the industry has progressively gravitated towards third-party software due to evolving client preferences, declining revenues, and the imperative for operational flexibility. This software not only empowers banks to gain a competitive edge over rivals by reducing operational costs but also mitigates the risk of human errors that could lead to financial losses
US Third-Party 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
Core Banking Software
Fastest Growth
Core Banking Software
Growth Rate
7.60% CAGR
Global Third-party banking software market ($ Bn)
Country Share for North America Region (%)
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Third-Party Banking Software Market Segmental Analysis
The third-party banking software market is segmented based on product type, deployment size, application, end-use, and regions. Based on Product Type the market is segmented as, Core Banking Software, Omnichannel Banking Software, Business Intelligence Software, Wealth Management Software, Others. Based on Deployment Size the market is segmented as, On-premise, Cloud. Based on Application the market is segmented as, Risk Management, Information Security, Business Intelligence. Based on End-use the market is segmented as, Commercial Banks, Retail Banks. Based on Regions the market is segmented as, North America, Europe, Asia Pacific, and Latin America.
Third-party Banking Software Market Analysis By Product
In 2022, the core banking software segment emerged as the market leader, contributing to over 31.0% of the global revenue share. The rapidly evolving landscape of the banking sector carries the inherent risk of institutions losing their competitive edge if they fail to adapt to the changing dynamics. Recognizing the significant impact of digital technology on consumer behavior and expectations, financial institutions are turning to core banking software to fulfill these evolving needs.
This realization has prompted various companies to invest substantial efforts in enhancing their banking software offerings, thereby fostering the growth of the core banking software segment. For instance, Regions Bank, a prominent U.S. financial institution, embarked on a technology-oriented transformation in June 2022, leveraging cutting-edge technologies and cloud integration to migrate its core banking platform.
Concurrently, the wealth management software segment is poised to experience rapid growth throughout the forecast period. The surge in demand for third-party wealth management software stems from the retired population's increasing requirement for services that aid in generating adequate retirement income. In light of extended life expectancies and rising medical expenses, individuals are seeking financial advisory and wealth management solutions to safeguard and optimize their assets. Consequently, the upward trend in adopting wealth management software is expected to substantially contribute to overall market growth.
Third-party Banking Software Market Analysis By Application
In the year 2022, the risk management segment emerged as the frontrunner. The application of third-party banking software for risk management empowers financial institutions to enhance the precision of risk assessment and effectively counter potential losses. The escalating instances of security breaches and stringent regulatory compliance mandates, coupled with the advancements in the Internet of Things (IoT), are expected to further propel the expansion of this segment.
Meanwhile, the business intelligence segment is poised to register the swiftest Compound Annual Growth Rate (CAGR) throughout the forecast period. The driving force behind this growth is the pivotal role played by the business intelligence application of third-party banking software in enabling banks to make well-informed decisions based on factual insights into market trends and consumer behaviors. Additionally, the mounting adoption of data analytics by end-users to comprehensively scrutinize generated data is spurring market growth. Furthermore, the integration of artificial intelligence (AI) into banking software is poised to usher in significant growth opportunities for the industry.
Global Third-party banking software market By Product
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Third-Party Banking Software Market Regional Insights
In 2022, North America asserted its dominance in the third-party banking software market, capturing a substantial share of over 30.0% of the global revenue. The region's robust banking industry expansion coupled with the increasing adoption of third-party software to enhance operational efficiency is poised to further amplify the regional market's growth trajectory.
The presence of influential key players like Microsoft and IBM further augments the growth prospects for the industry within the North American region. Furthermore, a pivotal driving factor is North America's position at the forefront of digitization efforts in the Banking, Financial Services, and Insurance (BFSI) sector, which is projected to intensify the demand for third-party software solutions.
On the other hand, Asia Pacific is anticipated to exhibit the highest Compound Annual Growth Rate (CAGR) during the forecast period. This growth can be attributed to stringent regulatory mandates and the flourishing IT infrastructure in countries such as China, India, and Japan. The concerted endeavors undertaken by various entities across the region to foster the adoption of third-party banking software are also poised to contribute significantly to the segment's expansion.
Global Third-party banking software market By Geography
- Largest
- Fastest
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Third-Party Banking Software Market Dynamics
Third-party Banking Software Market Drivers
Digital Transformation
- The banking industry's shift toward digitalization and modernization is a major driver. Banks are adopting third-party software to streamline operations, enhance customer experiences, and stay competitive in the digital age.
Third-party Banking Software Market Restraints
Security Concerns
- With the rise in cyber threats and data breaches, security remains a critical concern. Banks must carefully evaluate third-party software providers for robust security features to safeguard sensitive customer data.
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Third-Party Banking Software Market Competitive Landscape
The competitive landscape of the third-party banking software market is characterized by intense rivalry among key players striving to offer innovative solutions, improve customer experiences, and expand their market reach. The market is dynamic and evolving, driven by technological advancements, changing customer preferences, and regulatory shifts. Key players compete based on factors such as product quality, features, pricing, customer support, and partnerships. The competitive landscape is further enriched by smaller players and startups that offer niche solutions, contributing to market diversity and innovation. Partnerships, collaborations, and mergers and acquisitions also shape the competitive dynamics, enabling players to expand their offerings and strengthen their market presence. As the banking industry continues to evolve, players in the third-party banking software market will strive to differentiate themselves through innovation and customer-centric solutions.
Third-party Banking Software Market Top Player’s Company Profile
- SAP SE
- Tata Consultancy Services (TCS)
- Infosys Ltd.
- Capgemini SE
- Accenture plc
- FIS, Inc.
Third-party Banking Software Market Recent Developments
- Jun-2022: Microsoft and Technisys, the maker of Core Banking software, formed a partnership. Together, the businesses sought to integrate Microsoft Cloud for Financial Services into its Cyberbank platform in order to give financial institutions the capacity to advance and intensify their digital transformation initiatives. Additionally, this partnership would enable businesses to innovate more quickly and focus on giving their customers value rather than maintaining their legacy systems.
- Apr-2022: A pure-play credit card company and provider of payment solutions in India, SBI Cards and Payments Services, partnered with Tata Consultancy Services. Through this partnership, TCS would modernise and digitalize the online onboarding process, enabling the quick turnaround and frictionless user experience that are essential to boosting customer satisfaction. Additionally, the partnership would enable SBI Card to increase the number of electronic cards it issues, satisfying end users and giving it a competitive edge in the market.
Third-Party Banking Software Key Market Trends
- Digital Transformation: The banking industry is undergoing a digital transformation to meet the demands of tech-savvy customers. Third-party banking software solutions are evolving to offer seamless digital experiences, from mobile banking apps to online account management, enabling banks to engage customers on various digital platforms.
Third-Party Banking Software Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Product types team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global third-party banking software market analysis, the third-party banking software market is experiencing substantial growth, driven by the increasing demand for efficient and advanced software solutions in the banking sector. This market is segmented based on solutions, services, deployment modes, and regions. The solutions segment includes core banking software, multi-channel banking software, wealth management software, and more. Services offered encompass consulting, integration, and support. Asia-Pacific, especially China and India, presents significant growth opportunities due to rapid technological adoption and expanding banking operations. The market is further fueled by factors like the need for enhanced customer experience, regulatory compliance, and the rise of digital banking. As banks aim for improved operational efficiency, security, and competitive edge, the demand for third-party banking software solutions is projected to continue growing globally.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 28.33 billion |
| Market size value in 2031 | USD 54.77 million |
| Growth Rate | 7.60% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Million |
| Segments covered |
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| 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 Third-Party 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 Third-Party 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 Third-Party 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 Third-Party 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 Third-Party Banking Software Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Third-Party 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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