Core Banking Software Market

Core Banking Software Market by Solutions (Enterprise Customer Solutions, Loans, Deposits, and Others), Services (Managed Service and Professional Service), Deployments (On-premise and Cloud), End-users (Financial Institutions, Banks, and Others), and Regions (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2021-2028

  • Report ID: ICT-SE-2203
  • Author: Growth Market Reports
  • Rating: 4.9
  • Total Reviews: 2
  • No. Of Pages: 176
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The global core banking software market size was valued at USD 10.21 billion in 2020 and is anticipated to reach a value of USD 17.35 billion in 2028, expanding at a CAGR of 7.3% over the forecast period, 2021-2028. The growth of the market is attributed to the surging demand for advanced banking technologies among the targeted population base.

Core Banking Software Market Key Takeaways

The back-end software that is used for the processing of day-to-day transactions performed by the bank and broadcast updates to accounts along with several other financial records is known as core banking software. Intense competition is occurring in the banking industry due to the lowering of switching barriers and the arrival of several next-generation banks. Quick services are provided by the key players of the market at a very low price to attract new customers. Core banking software enables an individual to exchange banking services online in real-time. These solutions allow a customer to access their account and carry out primary transactions from any branch office. The core banking software systems are rapidly becoming the backbone of modern banks as they look over various tasks such as journal entries, creation & management of accounts, balances, transactions, and others. Such software uses an agile architecture that allows the bank to make quick fixes and changes in the software without interrupting the customer’s digital experience.

The recently developed core banking software are integrated with several banking activities including KYC services, payment processing, card issuing, onboarding, among others. These software enables banks to effortlessly merge self-service operations and back-office data. The established business models used by various banks and financial institutions are being disrupted due to the rapid evolvement of advanced technologies such as big data, artificial intelligence, mobility, and blockchain among the others. Such technological advancements reduce the manual work and increase the efficiency of the staff.

The COVID-19 pandemic had a negative impact on the global core banking software market. The worldwide financial market faced a significant repositioning due to delayed lease payments and the occurrence of sudden changes in the interest rates. This pandemic created several challenges for the banks and financial institutions among which the major one is the operationalization of variations in the complete credit management.

Market Trends, Drivers, Restraints, and Opportunities

  • The rising adoption of SaaS-based or cloud-based banking platforms is anticipated to boost the market growth over the forecast period.
  • Increasing demand for digital banking services and the growing insistence of smart phones are expected to fuel the market expansion in the coming years.
  • Absence of awareness among businesses regarding recent banking technology is a major factor restraining the market growth.
  • Lack of availability of switchable methodology for software selection and lack of required infrastructure are key challenges hampering the market growth during the forecast period.
  • Technological advancements in core banking along with their adoption by the banking sector are estimated to create key opportunities for the market growth.

Scope of the Report

The report on the global core banking software market includes an assessment of the market, trends, and segments. Overview and dynamics have also been included in the report.

Attributes

Details

Report Title

Core Banking Software Market – Global Industry Analysis, Growth, Share, Size, Trends, And Forecast

Base Year

2020

Historic Data

2018–2019

Forecast Period

2021–2028

Segmentation

Solutions (Enterprise Customer Solutions, Loans, Deposits, and Others), Services (Managed Service and Professional Service), Deployments (On-premise and Cloud), and End-users (Financial Institutions, Banks, and Others)

Regional Scope

Asia Pacific, North America, Latin America, Europe, and Middle East & Africa

Report Coverage

Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast

Key Players Covered in the Report

Unisys; Finastra; Fiserv, Inc.; FIS; HCL Technologies Ltd.; Jack Henry & Associates, Inc.; Infosys Ltd.; Oracle Corp.; Capgemini; and Temenos Group

Market Segment Insights

Enterprise customer solutions segment is expected to grow at a considerable rate

On the basis of solutions, the core banking software market is divided into enterprise customer solutions, loans, deposits, and others. The enterprise customer solutions segment led the market in 2020 and is expected to grow at a considerable rate as it provides several benefits to the banks and financial institutions. Enterprise customer solutions enable seamless integration of customer information with Enterprise resource planning (ERP), Customer Relationship Management (CRM), and administrative management tools using the central database of a bank. These solutions help in the improvement of their functions at reduced operational costs. These solutions also enable the establishment of inner-connectivity among the branches of a common bank or financial institution.

Managed service segment is anticipated to exhibit a high growth

Based on services, the market is bifurcated into managed service and professional service. The professional services segment led the market in 2020 attributed to the rising requirement for support at every stage of the process of software deployment. These stages include integration, consultation & pre-implementation, and project management. However, the managed service segment is anticipated to exhibit a high growth as it provides maintenance capabilities and support for deep infrastructure.

Core Banking Software Market By Services

Cloud segment is estimated to register a high growth

On the basis of deployments, the core banking software market is bifurcated into on-premise and cloud. The on-premise segment held a major share of the market in 2020 due to its huge adoption as it takes the complete responsibility of integration of the software and solving any issue related to security. However, the cloud segment is estimated to register a high growth as they help various banks and financial institutes to battle against better innovative digital competitors.

Banks segment is anticipated to dominate the market

Based on end-users, the market is segmented into financial institutions, banks, and others. The bank segment dominated the market in 2020 and is anticipated to continue its dominance over the forecast period attributed to extensive advancements in internet connectivity and information technology worldwide. Several banks are also diverting their focus towards the implementation of customized applications for core banking. However, financial institutions are anticipated to register a significant owing to the wide adoption of this software to avoid fraud and theft occurring in real-time banking facilities.

Core Banking Software Market By End Users

Asia Pacific market is anticipated to witness a rapid growth

In terms of regions, the core banking software market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa.

North America dominated the market in 2020 in terms of revenue share owing to the huge adoption of these software by the major banks present in the region. Adoption of such software by small & medium enterprises to ensure effective flow of financial activities is also a major factor that contributed to the growth of the regional market. On the other hand, the market in Asia Pacific is anticipated to witness a rapid growth due to the growing adoption of web-based and mobile-based business applications in the sector of banking.

Segments

Segments Covered in the Report
The global core banking software market has been segmented on the basis of

Solutions
  • Enterprise Customer Solutions
  • Loans
  • Deposits
  • Others
Services
  • Managed Service
  • Professional Service
Deployments
  • On-premise
  • Cloud
End-users
  • Financial Institutions
  • Banks
  • Others
Regions
  • Asia Pacific
  • North America
  • Latin America
  • Europe
  • Middle East & Africa
Key Players
  • Unisys
  • Finastra
  • Fiserv, Inc.
  • FIS
  • HCL Technologies Ltd.
  • Jack Henry & Associates, Inc.
  • Infosys Ltd.
  • Oracle Corp.
  • Capgemini
  • Temenos Group

Competitive Landscape

Key players competing in the global core banking software market are Unisys; Finastra; Fiserv, Inc.; FIS; HCL Technologies Ltd.; Jack Henry & Associates, Inc.; Infosys Ltd.; Oracle Corp.; Capgemini; and Temenos Group. Many of these players have adopted business strategies such as promotions, marketing, retail branding, research & development activities, collaborations, partnerships, alliances, acquisitions, and mergers in order to increase their operation expansion, consumer base, and market position globally.

Core Banking Software Market By Key Players

1. Executive Summary
2. Assumptions and Acronyms Used
3. Research Methodology
4. Core Banking Software Market Overview
  4.1. Introduction
     4.1.1. Market Taxonomy
     4.1.2. Market Definition
  4.2. Macro-Economic Factors
     4.2.1. Industry Outlook
  4.3. Core Banking Software Market Dynamics
     4.3.1. Market Drivers
     4.3.2. Market Restraints
     4.3.3. Opportunity
     4.3.4. Market Trends
  4.4. Core Banking Software Market - Supply Chain
  4.5. Global Core Banking Software Market Forecast
     4.5.1. Core Banking Software Market Size (US$ Mn) and Y-o-Y Growth
     4.5.2. Core Banking Software Market Size (000’ Units) and Y-o-Y Growth
     4.5.3. Core Banking Software Market Absolute $ Opportunity
5. Global Core Banking Software Market Analysis and Forecast by End Users
  5.1. Market Trends
  5.2. Introduction
     5.2.1. Basis Point Share (BPS) Analysis by End Users
     5.2.2. Y-o-Y Growth Projections by End Users
  5.3. Core Banking Software Market Size and Volume Forecast by End Users
     5.3.1. Financial Institutions Banks Others
  5.4. Absolute $ Opportunity Assessment by End Users
  5.5. Market Attractiveness/Growth Potential Analysis by End Users
6. Global Core Banking Software Market Analysis and Forecast by Region
  6.1. Market Trends
  6.2. Introduction
     6.2.1. Basis Point Share (BPS) Analysis by Region
     6.2.2. Y-o-Y Growth Projections by Region
  6.3. Core Banking Software Market Size and Volume Forecast by Region
     6.3.1. North America
     6.3.2. Latin America
     6.3.3. Europe
     6.3.4. Asia Pacific
     6.3.5. Middle East and Africa (MEA)
  6.4. Absolute $ Opportunity Assessment by Region
  6.5. Market Attractiveness/Growth Potential Analysis by Region
  6.6. Global Core Banking Software Demand Share Forecast, 2019-2026
7. North America Core Banking Software Market Analysis and Forecast
  7.1. Introduction
     7.1.1. Basis Point Share (BPS) Analysis by Country
     7.1.2. Y-o-Y Growth Projections by Country
  7.2. North America Core Banking Software Market Size and Volume Forecast by Country
     7.2.1. U.S.
     7.2.2. Canada
  7.3. Absolute $ Opportunity Assessment by Country
  7.4. North America Core Banking Software Market Size and Volume Forecast by End Users
     7.4.1. Financial Institutions Banks Others
  7.5. Basis Point Share (BPS) Analysis by End Users
  7.6. Y-o-Y Growth Projections by End Users
  7.7. Market Attractiveness/Growth Potential Analysis
     7.7.1. By Country
     7.7.2. By Product Type
     7.7.3. By Application
  7.8. North America Core Banking Software Demand Share Forecast, 2019-2026
8. Latin America Core Banking Software Market Analysis and Forecast
  8.1. Introduction
     8.1.1. Basis Point Share (BPS) Analysis by Country
     8.1.2. Y-o-Y Growth Projections by Country
     8.1.3. Latin America Average Pricing Analysis
  8.2. Latin America Core Banking Software Market Size and Volume Forecast by Country
      8.2.1. Brazil
      8.2.2. Mexico
      8.2.3. Rest of Latin America
   8.3. Absolute $ Opportunity Assessment by Country
  8.4. Latin America Core Banking Software Market Size and Volume Forecast by End Users
     8.4.1. Financial Institutions Banks Others
  8.5. Basis Point Share (BPS) Analysis by End Users
  8.6. Y-o-Y Growth Projections by End Users
  8.7. Market Attractiveness/Growth Potential Analysis
     8.7.1. By Country
     8.7.2. By Product Type
     8.7.3. By Application
  8.8. Latin America Core Banking Software Demand Share Forecast, 2019-2026
9. Europe Core Banking Software Market Analysis and Forecast
  9.1. Introduction
     9.1.1. Basis Point Share (BPS) Analysis by Country
     9.1.2. Y-o-Y Growth Projections by Country
     9.1.3. Europe Average Pricing Analysis
  9.2. Europe Core Banking Software Market Size and Volume Forecast by Country
     9.2.1. Germany
     9.2.2. France
     9.2.3. Italy
     9.2.4. U.K.
     9.2.5. Spain
     9.2.6. Russia
     9.2.7. Rest of Europe
  9.3. Absolute $ Opportunity Assessment by Country
  9.4. Europe Core Banking Software Market Size and Volume Forecast by End Users
     9.4.1. Financial Institutions Banks Others
  9.5. Basis Point Share (BPS) Analysis by End Users
  9.6. Y-o-Y Growth Projections by End Users
  9.7. Market Attractiveness/Growth Potential Analysis
     9.7.1. By Country
     9.7.2. By Product Type
     9.7.3. By Application
  9.8. Europe Core Banking Software Demand Share Forecast, 2019-2026
10. Asia Pacific Core Banking Software Market Analysis and Forecast
  10.1. Introduction
     10.1.1. Basis Point Share (BPS) Analysis by Country
     10.1.2. Y-o-Y Growth Projections by Country
     10.1.3. Asia Pacific Average Pricing Analysis
  10.2. Asia Pacific Core Banking Software Market Size and Volume Forecast by Country
     10.2.1. China
     10.2.2. Japan
     10.2.3. South Korea
     10.2.4. India
     10.2.5. Australia
     10.2.6. Rest of Asia Pacific (APAC)
  10.3. Absolute $ Opportunity Assessment by Country
  10.4. Asia Pacific Core Banking Software Market Size and Volume Forecast by End Users
     10.4.1. Financial Institutions Banks Others
  10.5. Basis Point Share (BPS) Analysis by End Users
  10.6. Y-o-Y Growth Projections by End Users
  10.7. Market Attractiveness/Growth Potential Analysis
     10.7.1. By Country
     10.7.2. By Product Type
     10.7.3. By Application
  10.8. Asia Pacific Core Banking Software Demand Share Forecast, 2019-2026
11. Middle East & Africa Core Banking Software Market Analysis and Forecast
  11.1. Introduction
     11.1.1. Basis Point Share (BPS) Analysis by Country
     11.1.2. Y-o-Y Growth Projections by Country
     11.1.3. Middle East & Africa Average Pricing Analysis
  11.2. Middle East & Africa Core Banking Software Market Size and Volume Forecast by Country
     11.2.1. Saudi Arabia
     11.2.2. South Africa
     11.2.3. UAE
     11.2.4. Rest of Middle East & Africa (MEA)
  11.3. Absolute $ Opportunity Assessment by Country
  11.4. Middle East & Africa Core Banking Software Market Size and Volume Forecast by End Users
     11.4.1. Financial Institutions Banks Others
  11.5. Basis Point Share (BPS) Analysis by End Users
  11.6. Y-o-Y Growth Projections by End Users
  11.7. Market Attractiveness/Growth Potential Analysis
     11.7.1. By Country
     11.7.2. By Product Type
     11.7.3. By Application
  11.8. Middle East & Africa Core Banking Software Demand Share Forecast, 2019-2026
12. Competition Landscape
  12.1. Global Core Banking Software Market: Market Share Analysis
  12.2. Core Banking Software Distributors and Customers
  12.3. Core Banking Software Market: Competitive Dashboard
  12.4. Company Profiles (Details: Overview, Financials, Developments, Strategy)
     12.4.1. Unisys Finastra Fiserv, Inc. FIS HCL Technologies Ltd. Jack Henry & Associates, Inc.  
Segments Covered in the Report
The global core banking software market has been segmented on the basis of

Solutions
  • Enterprise Customer Solutions
  • Loans
  • Deposits
  • Others
Services
  • Managed Service
  • Professional Service
Deployments
  • On-premise
  • Cloud
End-users
  • Financial Institutions
  • Banks
  • Others
Regions
  • Asia Pacific
  • North America
  • Latin America
  • Europe
  • Middle East & Africa
Key Players
  • Unisys
  • Finastra
  • Fiserv, Inc.
  • FIS
  • HCL Technologies Ltd.
  • Jack Henry & Associates, Inc.
  • Infosys Ltd.
  • Oracle Corp.
  • Capgemini
  • Temenos Group

Key players competing in the global core banking software market are Unisys; Finastra; Fiserv, Inc.; FIS; HCL Technologies Ltd.; Jack Henry & Associates, Inc.; Infosys Ltd.; Oracle Corp.; Capgemini; and Temenos Group. Many of these players have adopted business strategies such as promotions, marketing, retail branding, research & development activities, collaborations, partnerships, alliances, acquisitions, and mergers in order to increase their operation expansion, consumer base, and market position globally.

Core Banking Software Market By Key Players

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