Core Banking Software Market Size, Share, Opportunities, And Trends By Solutions (Deposits, Loans), By Service (Professional, Managed Services), By End-Users (Retail Banking, Treasury, Corporate Banking, Wealth Management), And By Geography - Forecasts From 2024 To 2029

The core banking software market is anticipated to show steady growth during the forecast period.

Core banking software serves as the backbone system utilized by banks for processing daily banking transactions, updating accounts, and maintaining financial records. The software plays a crucial role in managing essential banking processes like customer accounts, transactions, and risk management. Additionally, it enables banks to enhance the operations, launch new financial products, and streamline procedures.

Core banking systems provide numerous advantages, one of which is an improved customer experience. The systems enable a more personalized and efficient service, ensuring customers benefit from faster transaction processing, seamless account access, and a wide array of convenient online services. Growing demand for artificial intelligence (AI), increased adoption of cloud technology, and increased investments in technology are driving the core banking software market growth.

Market Drivers

• Growing demand for artificial intelligence in banking systems enhances the core banking software market growth.

AI is being adopted by banks to carry out various tasks, such as identifying fraudulent activities, approving loans, and providing personalized financial guidance. The adoption of AI not only enhances efficiency and security but also improves the overall customer experience. As a result, the integration of AI functionalities in banking software is contributing to the growth of the industry.

For instance, according to an article published by Temenos in September 2023, Temenos, a prominent figure in banking core systems, has made notable progress in the field of AI for banking. The company introduced a groundbreaking Generative AI solution exclusively tailored for the banking industry, ensuring utmost security. The innovative solution from Temenos primarily emphasizes the automatic classification and labeling of customer transactions.

• Increased adoption of cloud-based technology propels the core banking software market growth.

Cloud technology is set to drive growth in the core banking software market by providing scalability, flexibility, and cost-effectiveness. This enables banks to tailor software resources to meet customer demands, accelerate innovation through shorter development cycles, and lower initial infrastructure expenses, ultimately enhancing accessibility to modern core banking systems.

 According to Capgemini’s article on the World Cloud Annual Report 2023, many banks and insurance companies have adopted cloud technology, with a significant 91% of them initiating the shift. This indicates a strong recognition of the benefits offered by cloud computing. The banking and insurance industries have accelerated their adoption of cloud technology in recent times, as the percentage of firms transitioning to the cloud has risen from 37% in August 2020 to 91% in August 2023.

• Increased investments in technology drive the core banking software systems market growth.

The growth of core banking systems is driven by enhanced investment in technology. Financial organizations are dedicating significant resources to modernizing their fundamental banking systems using cutting-edge technology. This increase in investment drives the integration of cloud-based solutions that provide scalability and adaptability. Outdated systems face challenges in meeting changing customer needs and addressing security risks.

Contemporary core banking software utilizes artificial intelligence for automation, enhances customer experiences, and reinforces security protocols. The advancements in the market improve operational efficiency, reduce costs, and empower banks to stay competitive in the age of digitalization. These cutting-edge innovations are extremely attractive to potential customers seeking a modern and secure banking experience, thus driving market growth.

Asia Pacific is projected to grow gradually.

Asia Pacific is anticipated to account for a significant share of the banking software systems market growth due to government initiatives in the region. For instance, according to an article published in the National Payments Corporation of India (NPCI) in September 2023, the governor of the Reserve Bank of India has launched a key initiative for digital payments. NPCI introduced a range of fresh product offerings. These new products, namely Credit Line on UPI, UPI LITE X, and Tap & Pay, Hello! UPI - Conversational Payments on UPI, and BillPay Connect - Conversational Bill Payments align with the theme of the Global Fintech Fest 2023. The primary objective behind these offerings is to establish an all-encompassing, robust, and environmentally friendly digital payments ecosystem.

Market Restraints

• Integrity hurdles with other banks hinder the banking software systems market growth.

Integrating core banking systems with other bank systems, including loan processing and wealth management, is a crucial requirement. Nevertheless, the procedure frequently proves to be complex and time-consuming.

Privacy and security concerns curb the banking and software systems market growth.

Financial institutions, along with banks, are responsible for managing a significant amount of sensitive information. The repercussions of any breaches in this data can be highly detrimental. Consequently, these institutions exercise great caution when considering the implementation of new core banking software. It is imperative for them to ascertain that the software is not only secure but also compliant with the most up-to-date privacy regulations.

Key Developments

• October 2023: Sopra Banking Software (SBS) launched the SBP Core Platform, a cutting-edge core banking solution that merges AI with a cloud-native infrastructure and Software-as-a-Service (SaaS) distribution model. The platform offers scalability, real-time processing, and an open architecture for seamless integration. Moreover, it is equipped with a pre-configured model bank, enabling financial institutions to onboard quickly and reduce operational expenses.
• June 2023: Infosys's partnership with Keytrade Bank highlights its contribution to driving digital transformation in the banking industry. The Indian multinational information technology company revealed that Keytrade Bank, an online bank based in Belgium, has selected its Finacle suite to upgrade its core banking system. This initiative is projected to enhance Keytrade Bank's digital services and customer satisfaction. Through the adoption of a cloud-based Software-as-a-Service (SaaS) model for the Finacle suite on Microsoft Azure, the bank will enjoy improved operational efficiency, quicker product introductions, and a contemporary technology framework.

Company Products

• Fusion Essence: Finastra's Fusion Essence serves as a cloud-native core banking solution tailored for contemporary financial institutions. This platform enables banks to enhance their competitiveness through a seamless digital interface for customers, encompassing functionalities such as account initiation and customized product suggestions. Moreover, Fusion Essence equips banks with essential resources for streamlined management of accounts, loans, and transactions.
• Flexcube: Oracle FLEXCUBE serves as a comprehensive core banking solution suitable for banks of various sizes. It effectively simplifies operations for retail, corporate, and Islamic banking by offering essential features such as loan processing, account management, and trade finance. With its flexible architecture, FLEXCUBE empowers banks to embrace innovation and seamlessly adjust to evolving market demands.

Segmentation

• By Solutions
  • Deposits
  • Loans
• By Service
  • Professional
  • Managed Services
• By End-Users
  • Retail Banking
  • Treasury
  • Corporate Banking
  • Wealth Management
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Taiwan
    • Thailand
    • Indonesia
    • Others

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key Benefits to the Stakeholder

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Processes

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. Analyst View

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View

5. CORE BANKING SOFTWARE MARKET BY SOLUTION

5.1. Introduction

5.2. Deposits

5.2.1. Market Trends and Opportunities

5.2.2. Growth Prospects

5.2.3. Geographic Lucrativeness

5.3. Loans

5.3.1. Market Trends and Opportunities

5.3.2. Growth Prospects

5.3.3. Geographic Lucrativeness

6. CORE BANKING SOFTWARE MARKET BY SERVICE

6.1. Introduction

6.2. Professional

6.2.1. Market Trends and Opportunities

6.2.2. Growth Prospects

6.2.3. Geographic Lucrativeness

6.3. Managed Services

6.3.1. Market Trends and Opportunities

6.3.2. Growth Prospects

6.3.3. Geographic Lucrativeness

7. CORE BANKING SOFTWARE MARKET BY END-USERS

7.1. Introduction

7.2. Retail Banking

7.2.1. Market Trends and Opportunities

7.2.2. Growth Prospects

7.2.3. Geographic Lucrativeness

7.3. Treasury 

7.3.1. Market Trends and Opportunities

7.3.2. Growth Prospects

7.3.3. Geographic Lucrativeness

7.4. Corporate Banking

7.4.1. Market Trends and Opportunities

7.4.2. Growth Prospects

7.4.3. Geographic Lucrativeness

7.5. Wealth Management

7.5.1. Market Trends and Opportunities

7.5.2. Growth Prospects

7.5.3. Geographic Lucrativeness

8. CORE BANKING SOFTWARE MARKET BY GEOGRAPHY

8.1. Introduction

8.2. North America

8.2.1. By Solution 

8.2.2. By Service

8.2.3. By End-Users

8.2.4. By Country

8.2.4.1. United States

8.2.4.1.1. Market Trends and Opportunities

8.2.4.1.2. Growth Prospects

8.2.4.2. Canada

8.2.4.2.1. Market Trends and Opportunities

8.2.4.2.2. Growth Prospects

8.2.4.3. Mexico

8.2.4.3.1. Market Trends and Opportunities

8.2.4.3.2. Growth Prospects

8.3. South America

8.3.1. By Solution 

8.3.2. By Service

8.3.3. By End-Users

8.3.4. By Country

8.3.4.1. Brazil

8.3.4.1.1.1. Market Trends and Opportunities

8.3.4.1.1.2. Growth Prospects

8.3.4.2. Argentina

8.3.4.2.1.1. Market Trends and Opportunities

8.3.4.2.1.2. Growth Prospects

8.3.4.3. Others

8.3.4.3.1.1. Market Trends and Opportunities

8.3.4.3.1.2. Growth Prospects

8.4. Europe

8.4.1. By Solution 

8.4.2. By Service

8.4.3. By End-Users

8.4.4. By Country

8.4.4.1. United Kingdom

8.4.4.1.1. Market Trends and Opportunities

8.4.4.1.2. Growth Prospects

8.4.4.2. Germany

8.4.4.2.1. Market Trends and Opportunities

8.4.4.2.2. Growth Prospects

8.4.4.3. France

8.4.4.3.1. Market Trends and Opportunities

8.4.4.3.2. Growth Prospects

8.4.4.4. Italy

8.4.4.4.1. Market Trends and Opportunities

8.4.4.4.2. Growth Prospects

8.4.4.5. Spain

8.4.4.5.1. Market Trends and Opportunities

8.4.4.5.2. Growth Prospects

8.4.4.6. Others

8.4.4.6.1. Market Trends and Opportunities

8.4.4.6.2. Growth Prospects

8.5. Middle East and Africa

8.5.1. By Solution 

8.5.2. By Service

8.5.3. By End-Users

8.5.4. By Country

8.5.4.1. Saudi Arabia

8.5.4.1.1. Market Trends and Opportunities

8.5.4.1.2. Growth Prospects

8.5.4.2. UAE

8.5.4.2.1. Market Trends and Opportunities

8.5.4.2.2. Growth Prospects

8.5.4.3. Others

8.5.4.3.1. Market Trends and Opportunities

8.5.4.3.2. Growth Prospects

8.6. Asia Pacific

8.6.1. By Solution 

8.6.2. By Service

8.6.3. By End-Users

8.6.4. By Country

8.6.5. Japan

8.6.5.1.1. Market Trends and Opportunities

8.6.5.1.2. Growth Prospects

8.6.6. China

8.6.6.1.1. Market Trends and Opportunities

8.6.6.1.2. Growth Prospects

8.6.7. India

8.6.7.1.1. Market Trends and Opportunities

8.6.7.1.2. Growth Prospects

8.6.8. South Korea

8.6.8.1.1. Market Trends and Opportunities

8.6.8.1.2. Growth Prospects

8.6.9. Taiwan

8.6.9.1.1. Market Trends and Opportunities

8.6.9.1.2. Growth Prospects

8.6.10. Thailand

8.6.10.1.1. Market Trends and Opportunities

8.6.10.1.2. Growth Prospects

8.6.11. Indonesia

8.6.11.1.1. Market Trends and Opportunities

8.6.11.1.2. Growth Prospects

8.6.12. Others

8.6.12.1.1. Market Trends and Opportunities

8.6.12.1.2. Growth Prospects

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. Oracle

10.2. Finastra

10.3. EdgeVerve Systems Limited

10.4. Temenos Headquarters SA

10.5. SAP SE

10.6. Capgemini

10.7. FIS Global

10.8. HCL Technologies

10.9. Unisys

10.10. Finserv, Inc.

Oracle

Finastra

EdgeVerve Systems Limited

Temenos Headquarters SA

SAP SE

Capgemini

FIS Global

HCL Technologies

Unisys

Finserv, Inc.