USD 11.68 Billion
Core Banking Software Market Size, Share, and Growth Analysis
Core Banking Software Market By Solution (Deposits, Loans), By Deployment (Cloud, On-premises), By End Use (Banks, Financial Institutions), By Region -Industry Forecast 2024-2031
Report ID:
SQMIG45E2199 |
Region:
Global |
Published Date: October, 2024
Pages:
157
|Tables:
92
|Figures:
76
Format -
Core Banking Software Market Insights
Core Banking Software Market size was valued at USD 11.68 Billion in 2023 and is poised to grow from USD 12.75 Billion in 2024 to USD 25.8 Billion by 2032, growing at a CAGR of 9.20% during the forecast period (2025-2032).
The market growth can be attributed to the increasing integration of the technology into core banking activities and service offerings. Digitization has improved the efficiency of banking and reduced processing time. The customer has many additional benefits that provide the power of the assessment with the ability to provide the ability to assign the central mid-range resource to the customer’s centralized system. Additionally, through transaction monitoring and analysis, basic banking solutions help detect and prevent the money laundering. Nukas to investigate the account and correct internal procedures.
The rapid adoption and adoption of new technologies has gathered tremendous momentum in various industries. Integrating the latest technologies, such as the generative artificial intelligence in banking and financial services, can help companies differentiate and gain a competitive edge. According to a study by Accenture in March 2023, covering more than 49,000 clients, 67% of clients using branch services for very specific and complex problems. Furthermore, the study estimates that through better communication with key customers, banks can increase revenues by up to 20%. Core banking digitization can greatly improve banking services. The integrated system provides easy access to customer information and reduces the need for redundant data entry, allowing for faster and more accurate communication.
US Core Banking Software Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
Enterprise Customer Solutions
Fastest Growth
Loans
Growth Rate
9.20% CAGR
Global Core Banking Software Market ($ Bn)
Country Share for North America Region (%)
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Core Banking Software Market Segments 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.
Analysis by Solution
The enterprise customer solutions segment dominated the market in 2023 and accounted for more than 48.0% of the worldwide sales. The increase of the segment can be attributed to banks and economic institutions adopting revolutionary solutions for interoperability. For example, in April 2023, Global Consumer Banking. The retail arm of Intellect Design Arena banking will set up eMACH.Ai, a specialized banking gadget that makes use of artificial intelligence to create customized transactions emerging technology consisting of devices and artificial intelligence are used to personalize the goods and offerings. Enterprise customer solutions play an important role in core banking system by increasing customer engagement and operational efficiency. These solutions combine advanced technologies such as artificial intelligence, data analytics and automation to streamline processes and provide a seamless customer experience.
The loans segment dominated the market in 2023. The financial institution’s middle lending solutions encompass a comprehensive suite of virtual gear designed to make the mortgage process simpler and extra efficient inside the financial area. In addition, the automation of the loan approval process, including data capture, credit scoring and verification documents, is expected to speed up the loan approval process and therefore reduce manual errors the loan component has increased significantly. Credit solutions enhance the operational performance, consumer level, and compliance for the duration of the lifecycle of the credit products. The loan segment is an important part of the central bank and is an important currency for financial institutions. This includes various types of loans, such as personal, home, business and car loans, which are processed through the bank’s core banking system. The efficiency of this section directly affects a bank’s profitability and customer retention.
Analysis by Deployment
In 2023, the on-premise segment dominated the market and accounted for more than 61.0% of global revenue. When building a system on campus, companies take full responsibility for any IT-related integration and security issues. Companies with legacy devices often partner with IT providers to access data and reduce security concerns and operational costs. It gives them more control over the business process. However, the on-premises model requires significant investments in physical infrastructure, IT personnel, and ongoing maintenance, making it more cost-effective and slower compared to cloud solutions. However, for banks that prioritize control, security and compliance over cost and flexibility, the on-premises segment remains an important channel in the core banking software market growth.
The cloud segment is expected to record the highest growth during the forecast period in core banking software market analysis. Financial institutions and banks with on-site businesses are focusing on adopting cloud-based solutions to compete against more innovative digital adversaries. Cloud technology helps automate businesses and operations workload, improving efficiency, cost savings and increased safety. Cloud-based primary banking solutions are flexible and can be easily expanded or scaled down on demand, thus meeting the IT needs of the target organization. The cloud segment has grown rapidly as banks seek simpler, more scalable, and more cost-effective alternatives to traditional core banking solutions. Cloud-based core banking software enables banks to access their systems from any location, flexibly.
Global Core Banking Software Market By Solution (%)
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Core Banking Software Market Regional Insights
The North America region dominated the core banking software market in 2023, accounting for more than 28.0% of the global revenue. The North America region is known for its early adoption of technology at the local level. For example, in February 2023, Arvest Bank launched its first equipment finance product using the cloud technology. Increasing emphasis on modernization of basic infrastructure by central regional banks is expected to boost the regional growth. Investment in development drives technological advances and impacts global growth in specialty banking. North America, especially the United States, plays an important role in the innovation and growth of the core banking software market.
Asia-Pacific is expected to emerge as the fastest growing market region during the core banking software market forecast. Many people in Asia Pacific do not have bank accounts. The increasing diversity of fintech companies in the sector is expected to drive demand for banking products and services. Furthermore, various financial inclusion initiatives in the region are anticipated to boost the key core software market during the forecast period. Asia-Pacific is a rapidly expanding market for core banking software with the regions. Large underbanked population, growing financial inclusion initiatives and digitally leading banks and mobile banking services growing is driven by Asia Pacific is undergoing rapid digital transformation in its economy, countries such as China, India, Japan and Singapore have become key players, driven by increased demand for specialized scalable banking solutions flexibility that can support high volumes of businesses and customer needs.
Global Core Banking Software Market By Geography
- Largest
- Fastest
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Core Banking Software Market Dynamics
Core Banking Software Market Drivers
Rise in Adoption of Cloud-based Solutions
One of the main drivers of the core banking software market trend is the adoption of cloud-based banking systems, with software providers such as Finastra, FIS, Temenos AG Banks using cloud-based payment methods, communication, and other banking services provide. Furthermore, Infosys’ solution Finacle core banking helps banks and financial institutions modernize their cloud-based banking services. It offers comprehensive capabilities, including flexible object factories, extensive parameterization, object integration, and reusable business components to power digital transformation and consequently all these factors contribute to the growth of the core banking software market.
Improved Customer Relationship
The core banking software has enabled banks to have immediate and efficient access to any information related to customers. This increased retention and customer satisfaction by providing immediate solutions to their problems, which drives the growth of the core banking software outlook. Additionally, with the core banking solution, the omnichannel banking experience enables customers to access and manage their accounts from any location through the integration of mobile and online banking branches for easy and transparent transactions. It further enhances the customer experience.
Core Banking Software Market Restraints
Increased Cost of Implementation
Adoption of core banking software often places a significant financial burden on institutions, particularly small banks and credit unions. Implementing new core banking requires not only software purchases but investments in associated infrastructure, security and in upgrading communication systems. As maintenance costs create economic stress that can hinder the adoption of basic banking software, especially for smaller banks that their IT budgets are low in core banking software industry.
Regulatory Compliance Challenges
Banking software continues to be subject to data protection laws about, under anti-money laundering (AML) regulations, Know Your Customer (KYC) requirements, etc. make it easier to comply with financial reporting and compliance. Failure to comply with these standards may result in significant costs and damage to the bank’s reputation. Additionally, as regulations continue to evolve in response to emerging financial threats and technological advances, software providers face an ongoing challenge to update their solutions to stay compliant. So, this program requires continued investment in improvement and quality, slowing down the innovation that needs to be done.
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Core Banking Software Market Competitive Landscape
The core banking software market growth is highly competitive, with established players and emerging fintechs innovating to meet the evolving demands of finance. Key players in the sector are companies such as Oracle, SAP, Temenos, FIS and Infosys Finacle. These companies provide the complete specialized banking solutions serving large multinational banks as well as regional microfinance institutions. For example, Temenos has leveraged its expertise in cloud-based banking through partnerships with cloud service providers such as Microsoft Azure and Amazon Web Services (AWS).
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
- October 2023: Sopra Banking Software (SBS), a fintech company, launched its next-generation core banking platform in software-as-a-service (SaaS). This platform is a cloud-native AI-enabled solution that performs tasks in real time.
- April 2023: Oracle FS, in partnership with Profinch (Oracle’s FLEXCUBE implementation partner), is upgrading Ethiopia-based OMO Bank’s core banking software and new anti-fraud and anti-money laundering (AML) software.
- January 2023: Arvest Bank announced its first product based on cloud-native core banking technology. This solution helps associates and clients automate commercial loans.
Core Banking Software Key Market Trends
- Growing Cloud-based Primary Banking Solutions: As banks look for cost-effective, scalable and secure alternatives to traditional on-premises systems, cloud-based primary banking software has become increasingly popular. Cloud-primarily based enterprise transformation answers for monetary establishments to allow delivery of new install faster, seamless development, as required scalability to handle transaction volumes or surprising upswings of the virtual banking. Cloud solutions provide benefits which include the reduced price of physical infrastructure, improved data safety and extra agility in implementation.
- Integrating AI and Machine Learning for Enhanced Services: AI and ML capabilities empower banks to analyze network patterns, spot fraudulent activity and accurately predict customer needs. Artificial intelligence (AI) and machine learning (ML) are transforming fundamental banking systems by bringing advanced predictive analytics, customer service automation, and personalized banking experiences. By automating proactive management and customer engagement, AI-powered chatbots and virtual assistants can streamline customer support, while data analytics tools provide personalized recommendations for financial products, improving customer satisfaction.
Core Banking Software Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to SkyQuest analysis, the core banking software market trend is undergoing rapid transformation as digital becomes more important for financial institutions around the world. Banking and financial services providers are increasingly moving towards AI-powered cloud-based solutions to compete, improve customer experience and improve operational efficiencies. As the market evolves, banks that effectively leverage this era will gain a tremendous competitive landscape, especially in phrases of agility, purchaser delight, and more. However, challenges remain specifically at the excessive costs related to software program implementation and the complexity of meeting regulatory compliance throughout jurisdictions are mitigated but also force the innovation as providers searching for price-powerful and customizable solutions. The endured integration of AI and cloud era is ready to redefine the core banking software, permitting banks to provide extra personalised, green and stable offerings to their customers.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 11.68 Billion |
| Market size value in 2032 | USD 25.8 Billion |
| Growth Rate | 9.20% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| 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.
Core Banking Software Market Report Snapshots
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