Third-Party Banking Software Market Size, Share, Growth Analysis, By Product(Core Banking Software, Omnichannel Banking Software), By Deployment(On-premise, and Cloud), By Application(Risk Management, Information Security) - Industry Forecast 2024-2031

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.