The global core banking software market revenue was around US$ 11.9 billion in 2023 and is estimated to reach US$ 49.7 billion by 2032, growing at a compound annual growth rate (CAGR) of 17.6% during the forecast period from 2024 to 2032.
Core banking is a back-end system that combines multiple branches of the same bank to provide functions like withdrawals, loan management, deposits, and payments in real-time. Core banking software is software that banks utilize to handle their most critical procedures, like transactions, customer accounts, and risk management. It is the central nervous system of a bank, and it is necessary for delivering a seamless customer experience (CX) and handling compliance with regulations.
Factors Influencing Market Growth
- The rise in customer satisfaction is a major driver for the growth of the core banking software market.
- The lower functioning costs of core banking software propel the growth of the core banking software market.
- The AI-powered infrastructure augments the completion rate of functions and decreases the possibility of errors in documentation. Therefore, accelerating the growth of the market.
- The improved productivity and enhanced customer relationships delivered by core banking software push the growth of the core banking software market.
- The insufficient scalability and low flexibility inhibit the growth of the core banking software market.
- Technological advancements like big data, AI, and the cloud in banking systems are anticipated to offer lucrative growth opportunities to core banking software market trends in the future.
Impact of COVID-19
The COVID-19 pandemic has accelerated the adoption of digital banking systems and resulted in more significant investments in core banking software, with an emphasis on cybersecurity, digital transformation, and cloud-based technology. The pandemic acted as a catalyst for banking industry modernization and innovation.
With social distancing and lockdown measures, people shifted to online banking more than before. The rise in demand for digital banking services pushed banks to enhance their core banking software to meet their customers' increasing expectations. Therefore, these factors positively influenced the core banking software market.
Regional Analysis
In 2023, North America dominated the global core banking software market in terms of revenue because of the rise in the adoption of digital banking services. Also, key players like Fiserv, Inc., and FIS are anticipated to propel the growth of the market for banking solutions in Canada and the U.S., as they are concentrated on establishing advanced banking solutions to enhance their product portfolio.
Also, Asia-Pacific is anticipated to be the fastest-growing region during the forecast period. This is attributed to the growing adoption of mobile-based and web applications in the banking sector. Also, banks in this region are investing in modernizing their systems to deliver seamless transactions, better customer experiences, and real-time data access.
Leading Companies
The leading prominent companies profiled in the global core banking software market are: -
- Capgemini
- Finastra
- FIS
- Fiserv, Inc.
- HCL Technologies Limited
- Infosys Limited
- Jack Henry & Associates, Inc.
- Oracle
- Temenos
- Unisys
- Other prominent key players
Segmentation Outline
The global core banking software market segmentation focuses on Component, Deployment Model, End User, and Region.
Segmentation based on Component
- Solution
- Service
Segmentation based on Deployment Model
- On-premise
- Cloud
Segmentation based on End User
- Banks
- Financial Institutions
- Others
Segmentation based on Region
- North America
- The U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Netherlands
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Singapore
- Rest Of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
