USD 30.1 billion
Third-Party Banking Software Market Size, Share, and Growth Analysis
Third-party Banking Software Market By Deployment (On-premises, Cloud), By Application (Risk Management, Business Intelligence), By End Use (Commercial Banks, Retail Banks), By Region -Industry Forecast 2025-2032
Report ID:
SQMIG45E2156 |
Region:
Global |
Published Date: February, 2025
Pages:
197
|Tables:
91
|Figures:
65
Format -
Third-Party Banking Software Market Insights
Third-Party Banking Software Market size was valued at USD 30.1 billion in 2023 and is poised to grow from USD 32.6 billion in 2024 to USD 61.69 billion by 2032, growing at a CAGR of 8.3% during the forecast period (2025-2032).
Rapidly increasing digitization of the banking and financial services industry is primarily driving up the demand for third-party banking software around the world. Increasing efforts of banks and financial organizations to reduce their operational expenses are also expected to bolster the adoption of third-party banking software in the future. Growing awareness regarding the benefits of third-party banking software use among all financial establishments is also creating new opportunities for market players. Moreover, the rising complexity of regulatory framework and imposition of stringent financial regulations are also slated to promote the demand for third-party banking software over the coming years. Developing countries are slated to emerge as highly opportune markets for third-party banking software providers in the long run. On the contrary, data security concerns, resistance to change, a dearth of skilled professionals, and challenges in compliance management are slated to be key restraints for the global third-party banking software market growth across the forecast period and beyond.
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 - 2025-2032
Global Market Size
Largest Segment
On-premises
Fastest Growth
Cloud
Growth Rate
8.3% CAGR
Global Third-party Banking Software Market ($ Bn)
Country Share for North America Region (%)
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Third-Party Banking Software Market Segments Analysis
Global Third-Party Banking Software Market is segmented by Product, Deployment, Application, End Use and region. Based on Product, the market is segmented into Core Banking Software, Omnichannel Banking Software, Business Intelligence Software, Wealth Management Software and Others. Based on Deployment, the market is segmented into On-Premise and Cloud. Based on Application, the market is segmented into Risk Management, Information Security and Business Intelligence. Based on End Use, the market is segmented into Retail Banks and Commercial Banks. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Analysis by Deployment
On-premises deployment is projected to account for a substantial chunk of the global third-party banking software market share going forward. High control over data security and privacy offered by this type of deployment allows it to bring in the most revenue. The crucial nature of financial data in banks and financial establishments calls for better security, which is offered by on-premises solutions. On-premises third-party banking software runs on private servers hosted by organizations at their own sites and managed by their in-house teams. Large enterprises with high spending potential and resources are more inclined to opt for on-premises deployment of third-party banking software over the coming years.
Meanwhile, cloud deployment of third-party banking software is slated to rise at an impressive CAGR across the study period. Advancements in cloud technologies and growing awareness regarding the benefits of cloud-based third-party banking software are expected to present new opportunities for third-party banking software providers in the long run. The rising number of cloud-native financial start-ups and high affordability of cloud platforms are also boosting the revenue of third-party banking software companies targeting this segment. Moreover, the migration of financial systems onto cloud platforms is also expected to help this segment offer new business scope in the future.
Analysis by Application
Risk management is forecasted to account for a notable share of the global third-party banking software industry going forward. Rising incidence of financial frauds and cyberattacks on financial institutions are expected to bolster the importance of risk management for all financial businesses in the future. Third-party banking software is being extensively used to mitigate risks and threats to improve the security of financial data of customers. Third-party banking software is also being used to improve compliance with stringent risk management regulations imposed by governments and regulatory bodies.
Meanwhile, the use of third-party banking software business intelligence applications is slated to rise at a notable pace in the future. Increasing emphasis on making data-driven decisions and the rising importance of insights in business operations are helping this segment generate new opportunities going forward. Use of data analytics to analyze user behavior and generate meaningful insights can also help promote the adoption of third-party banking software for business intelligence applications. Integration of artificial intelligence and other advanced technologies can also help third-party banking software companies maximize their business scope via this segment in the long run.
Global Third-party Banking Software Market By Deployment
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Third-Party Banking Software Market Regional Insights
North America is forecasted to account for the largest global third-party banking software market share in the future. Rapid adoption of advanced digital banking technologies and solutions in this region is expected to bolster its dominance over the coming years. The presence of leading third-party banking software providers and top banking companies are also cementing the high share of North America. The United States is slated to spearhead the adoption of third-party banking software in this region owing to rising use of digital banking solutions and a stringent regulatory framework for financial establishments. Canada is also another opportune market for third-party banking software providers in the North American region through 2031.
The Asia Pacific region is slated to emerge as the most opportune market for third-party banking software companies in the world. Increasing digital transformation, rising adoption of digital banking, and imposition of stringent regulations are expected to help this region boost revenue generation for market players. Developing IT infrastructure and rising availability of internet connectivity are also expected to help promote the demand for third-party banking software over the coming years. China, Japan, and India are slated to be the most rewarding markets for third-party banking software providers operating in the Asia Pacific region. Rising number of banks and financial institutions focusing on scaling their businesses in this region are also promoting the demand for third-party banking software.
Global Third-party Banking Software Market By Region
- Largest
- Fastest
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Third-Party Banking Software Market Dynamics
Third-Party Banking Software Market Drivers
Rise of Digital Banking
-
Rapidly increasing digital transformation of the banking and financial services industry vertical is projected to promote the use of digital banking around the world. Financial institutions are leveraging third-party banking software to enhance customer experience, provide seamless online transactions, and expand their digital capabilities thereby promoting market development in the future.
Need for Cost-effective Banking Solutions
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Financial institutions and banks are continually focusing on reducing their operational expenses to maximize profitability. Third-party banking software offers cost-effective solutions by eliminating the need for in-house software development, which incurs additional costs. This makes third-party banking software an attractive option for both small and large financial organizations.
Third-Party Banking Software Market Restraints
Resistance to Change
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Traditional financial institutions and banks are hesitant to opt for novel digital software and solutions over concerns of losing control and disrupting their already established workflows. This reluctance to change and adoption of third-party banking software is expected to significantly slow down the market development and growth potential in the long run.
Data Security and Privacy Concerns
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Sharing crucial customer data with third-party software providers raises concerns regarding data security and privacy. Cybersecurity breaches and unauthorized data access can erode trust among financial institutions and negatively impact the adoption of third-party banking software around the world. Addressing these concerns is slated to be highly vital for companies to unlock the full global third-party banking software market growth potential through 2031.
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Third-Party Banking Software Market Competitive Landscape
Improving the security features of third-party banking software is projected to be the prime focus of almost all companies going forward. Providing easy integration and operation features can help third-party banking software providers maximize their business scope in the long run. Capitalizing on the growing popularity of digitization of the banking and finance industry should be the preference of leading third-party banking software companies.
Top Players in Third-Party Banking Software Market
- Finastra (UK)
- FIS (US)
- Fiserv (US)
- Temenos (Switzerland)
- Oracle (US)
- SAP (Germany)
- Microsoft (US)
- IBM (US)
- Accenture (Ireland)
- Capgemini (France)
- Infosys (India)
- TCS (India)
- Wipro (India)
- Cognizant (US)
- DXC Technology (US)
- LTI (India)
- HCLTech (India)
- Tech Mahindra (India)
- Mu Sigma (US)
Third-party Banking Software Market Recent Developments
- In June 2024, Live Oak Bank, a leading American banking organization, announced the launch of its new embedded banking partnership. The new partnership enables software companies to provide Live Oak banking products and services to their own customers to expand their business scope.
- In April 2024, Finastra, a leading fintech organization announced the launch of its next-generation mobile banking software. The new solution was launched to deliver an enhanced experience for community banks and credit unions with better customization and security features.
- In April 2024, Standard Chartered, a leading multinational bank announced the launch of its new Open Banking marketplace. The new platform acts as a one-stop solution for existing and future clients to test their APIs in a sandbox environment to accelerate digital transformation and promote innovative software development.
Third-Party Banking Software Key Market Trends
- Cloud-based Software: Third-party banking software companies should focus on providing cloud-based offerings to maximize their business scope in the long run. High flexibility, scalability, and cost-effectiveness of cloud-based third-party banking software is expected to promote its adoption in small as well as large banking and financial institutions in the long run.
- Emphasis on Cybersecurity: Third-party banking software companies should focus on adding advanced cybersecurity features to their offerings to maximize their business scope and stand out from the competition. Providing advanced security features such as biometric authentication, encryption, and real-time monitoring can help third-party banking software providers improve their adoption scope across the study period and beyond.
Third-Party 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.
As per SkyQuest analysis, increasing digitization of the banking and finance industry and growing demand for cost-effective banking solutions are slated to bolster the adoption of third-party banking software in the future. However, resistance to change and data security concerns are slated to impede the demand for third-party banking software in the future. North America is estimated to spearhead the global third-party banking software demand owing to the presence of leading banks and software companies. Development of cloud-based third-party banking software with enhanced cybersecurity features is projected to be a prominent third-party banking software market trend for companies in the long run.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 30.1 billion |
| Market size value in 2032 | USD 61.69 billion |
| Growth Rate | 8.3% |
| 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 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.
Third-Party Banking Software Market Report Snapshots
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