Global Core Banking Solutions Market, By Type (Enterprise Customer Solutions, Deposits, Loans, Mortgages, Transfer, Payments and Withdrawal, Currency Exchange, and Others), Offering (Software and Services), Deployment Mode (Cloud and On Premises), Enterprise Size (Large Enterprises and Small and Medium Enterprises (SMES)) Channel (ATMs, Internet Banking, Mobile Banking, Bank Branches, and Others), Function (Account Management, Transaction Processing, Risk Management, Customer Relationship Management, Reporting and Analytics, Product Management, Loan Management, Compliance Management, and Others), End User (Banks, Credit Unions and Community Banks, and Other Financial Institutions) - Industry Trends and Forecast to 2031.
Core Banking Solutions Market Analysis and Size
In the core banking industry, customer-centric solutions emphasize customizing services to each individual requirements and preferences. These solutions put an emphasis on improving the overall customer experience by providing features such as real-time transaction updates, customized product suggestions, user-friendly mobile banking interfaces, and proactive financial advice based on client behavior and preferences.
The global core banking solutions market is expected to gain market growth in the forecast period of 2024 to 2031. Data Bridge Market Research analyzes that the market is growing with a CAGR of 10.6% in the forecast period of 2024 to 2031 and is expected to reach USD 33,432.63 million by 2031 from USD 15,110.90 million in 2023.
Report Metric
|
Details
|
Forecast Period
|
2024 to 2031
|
Base Year
|
2023
|
Historic Year
|
2022 (Customizable 2016-2021)
|
Quantitative Units
|
Revenue in USD Million
|
Segments Covered
|
Type (Enterprise Customer Solutions, Deposits, Loans, Mortgages, Transfer, Payments and Withdrawal, Currency Exchange, and Others), Offering (Software and Services), Deployment Mode (Cloud and On Premises), Enterprise Size (Large Enterprises and Small and Medium Enterprises (SMES)) Channel (ATMs, Internet Banking, Mobile Banking, Bank Branches, and Others), Function (Account Management, Transaction Processing, Risk Management, Customer Relationship Management, Reporting and Analytics, Product Management, Loan Management, Compliance Management, and Others), End User (Banks, Credit Unions and Community Banks, and Other Financial Institutions)
|
Countries Covered
|
U.S., Canada, Mexico, Germany, Italy, U.K., France, Switzerland, Spain, Russia, Turkey, Belgium, Sweden, Norway, Denmark, Finland, Poland, Netherlands and Rest of Europe, China, India, South Korea, Japan, Thailand, Australia, Singapore, New Zealand, Indonesia, Malaysia, Philippines, Vietnam and Rest of Asia-Pacific, Brazil, Argentina, Rest of South America, Saudi Arabia, U.A.E., South Africa, Egypt, Qatar, Bahrain, Kuwait, Oman, Israel and Rest of Middle East and Africa
|
Market Players Covered
|
FIS, Bricknode, Jayam solutions, Forbis, NCR VYOIX Corporation, HCL Technologies Limited, Unisys, Infosys Limited, TATA Consultancy Services Limited, Jack Henry & Associates, Inc., SAP, Oracle, Capgemini., nCino, Finastra, Fiserv Inc., Nelito Systems Pvt. Ltd, Mambu, Chetu Inc., Backbase, Capital Banking Solutions, IBM and among others
|
Market Definition
The all-encompassing IT solutions that serve as the foundation for banking operations are referred to as core banking solutions, or CBS. These technologies allow banks to easily provide a wide range of services by centralizing and streamlining numerous financial operations. For banks to run smoothly, deliver a comprehensive range of services, and give their clients a flawless banking experience, CBS is essential. Typically, these solutions are offered by specialized IT companies that focus on the banking and finance sector. Strong security features are incorporated into these products to safeguard consumer information and transactions. They also guarantee adherence to rules and regulations set forth by authorities overseeing the banking industry.
Global Core Banking Solutions Market Dynamics
Drivers
- Increasing Demand and Adoption of Core Banking Solutions
Operating software for financial institutions is based on core banking, which is a constantly changing field in banking technology. One factor propelling the market for core banking solutions is the growing need for core banking techniques. Core banking solutions that are more customer-focused and efficient are replacing traditional banking practices as the financial environment rapidly transitions to a digital economy. An increasing number of customers are choosing digital and mobile banking experiences, financial institutions need to streamline their operations, and businesses must adjust to competitive markets and shifting regulatory environments. These reasons have combined to create a rise in demand.
Contemporary core banking solutions provide a centralized platform that unifies different banking operations, enabling data processing, account administration, and smooth transactions. Customers who are tech-savvy have higher expectations, and these solutions' accessibility and ease meet those expectations, which is fueling demand for better digital banking experiences.
Furthermore, scalable core banking systems that can adjust to various regulatory regimes and meet the needs of numerous markets are essential as banks strive to expand their services abroad. The market for core banking solutions is growing at a substantial rate due in large part to the desire for scalable and flexible solutions.
- Increasing Demand For Customer Centric Solutions
In the core banking industry, customer-centric solutions emphasize customizing services to each individual requirements and preferences. These solution focus on improving the overall customer experience by providing features such as real-time transaction updates, customized product suggestions, user-friendly mobile banking interfaces, and proactive financial advice based on client behavior and preferences.
Traditional financial institutions have been forced to adjust due to the advent of fintech disruptors and the transformation of client expectations brought about by the widespread use of digital technologies. Consumers today anticipate from their banks the same degree of ease, accessibility, and customization that they receive from other digital businesses.
Financial institutions can establish themselves, satisfy the changing needs of today's consumers and stay competitive in the fast-paced banking sector by prioritizing improving client experiences through individualized, user-friendly, and technologically sophisticated solutions. Thus, the increasing demand for customer centric solutions is driving market growth.
Opportunity
- Rising Demand for Digital Transformation
In the era of digital banking, customers expect real-time transactions, personalized services, and seamless feasible experiences. Core banking solutions that align with these expectations offer financial institutions the means to enhance their operational agility, improve customer engagement, and stay ahead of the curve in an increasingly tech-driven market. The ability of core banking systems to provide a robust foundation for digital innovation positions them as catalysts for the industry's transformation, allowing banks to adapt to changing consumer behaviors and emerging market trends.
Moreover, the rising demand for digital transformation extends beyond customer-facing interactions. Financial institutions recognize the need to streamline internal processes, enhance data management, and ensure compliance with evolving regulatory requirements. Core banking solutions that offer a comprehensive suite of functionalities, including advanced analytics and automation capabilities, empower banks to optimize their operations and make data-driven decisions, contributing to overall efficiency gains. In essence, the surge in demand for digital transformation is expected to act as an opportunity for market growth.
Restraint/Challenge
- Adherence to Strict Regulatory Guidelines
The banking industry functions in a highly regulated setting, governed by several national, international, and regional frameworks that safeguard consumer interests, maintain financial stability, and stop illegal activity such as fraud and money laundering. Large amounts of sensitive client data must be handled and processed when implementing core banking systems. Strict compliance with data protection and privacy legislation, such as the CCPA and GDPR, and industry-specific rules such as Basel III and KYC (Know Your Client) standards, are also required.
Financial institutions' operational complexity and expenses are further increased by the requirement for ongoing monitoring, reporting, and audits to prove compliance. Because of this, banks frequently find it difficult to quickly implement or update core banking solutions because of the rigorous procedure involved in making sure they are in line with changing regulatory frameworks.
Financial institutions must invest a great deal of time, energy, and resources to meet these regulatory requirements, which frequently takes them away from innovation and the quick adoption of new technologies. The market's flexibility and ability to adapt to new technology developments may be hampered by the stringent compliance standards. Therefore, even while these laws are necessary to maintain a safe financial environment, they may also obstruct the quickness and adaptability needed for core banking systems to evolve dynamically. Thus, the adherence to strict regulatory guidelines is restraining market growth.
Recent Developments
- In April 2023, HCL Technologies Limited and Temenos extended their collaboration to speed up banks' and other financial institutions' digital transformation. Temenos' open platform for composable banking and its cutting-edge enterprise solutions with this latest partnership, which include wealth management, digital banking, and core banking, are combined with HCLTech's vast cloud hosting, implementation, and integration capabilities. This has helped the company to grow and expand in parallel
- In July 2023, the research and advisory firm Celent chose FIS for three XCelent Awards in the areas of "Advanced Technology," "Customer Base," and "Breadth of Functionality." The XCelent awards were developed by Celent to assist financial institutions in comparing solution providers and comprehending the vendor ecosystem
Global Core Banking Solutions Market Scope
The global core banking solutions market is segmented into seven notable segments based on type, offering, deployment mode, enterprise size, channel, function, and end user. The growth amongst these segments will help you analyze meager growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Type
- Enterprise Customer Solutions
- Deposits
- Loans
- Mortgages
- Transfer
- Payments and Withdrawal
- Currency Exchange
- Others
On the basis of type, the market is segmented into enterprise customer solutions, deposits, loans, mortgages, transfer, payments and withdrawal, currency exchange, and others.
Offering
- Software
- Services
On the basis of offering, the market is segmented into software and services.
Deployment Mode
- Cloud
- On Premises
On the basis of deployment mode, the market is segmented into cloud and on premises.
Enterprise Size
- Large Enetrprises
- Small and Medium Enetrprises (SMEs)
On the basis of enterprise size, the market is segmented into large enetrprises and Small and Medium Enetrprises (SMES).
Channel
- ATMs
- Internet Banking
- Mobile Banking
- Bank Branches
- Others
On the basis of channel, the market is segmented into ATMs, internet banking, mobile banking, bank branches, and others.
Function
- Account Management
- Transaction Processing
- Customer Relationship Management
- Risk Management
- Reporting and Analytics
- Compliance Management
- Product Management
- Loan Management
- Others
On the basis of function, the market is segmented into account management, transaction processing, customer relationship management, risk management, reporting and analytics, compliance management, product management, loan management, and others.
End User
- Banks
- Credit Unions And Community Banks
- Other Financial Institutions
On the basis of end user, the market is segmented into banks, credit unions and community banks, and other financial institutions.
Global Core Banking Solutions Market Regional Analysis/Insights
The global core banking solutions market is segmented into seven notable segments based on type, offering, deployment mode, enterprise size, channel, function, and end user.
The countries covered in the global core banking solutions market report are U.S., Canada, Mexico, Germany, Italy, U.K., France, Switzerland, Spain, Russia, Turkey, Belgium, Sweden, Norway, Denmark, Finland, Poland, Netherlands and Rest of Europe, China, India, South Korea, Japan, Thailand, Australia, Singapore, New Zealand, Indonesia, Malaysia, Philippines, Vietnam and Rest of Asia-Pacific, Brazil, Argentina, Rest of South America, Saudi Arabia, U.A.E., South Africa, Egypt, Qatar, Bahrain, Kuwait, Oman, Israel and Rest of Middle East and Africa.
U.S. is expected to dominate in North America due to Increasing integration with emerging technologies. Germany is expected to dominate in Europe due to growing adoption of advanced banking solutions in this region. China is expected to dominate in Asia-Pacific due to demand for digital transformation and expansion of fintech ecosystem are expected to propel the market growth in this region.
The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of Global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Competitive Landscape and Global Core Banking Solutions Market Share Analysis
The global core banking solutions market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus on the global core banking solutions market.
Some of the major players operating in the global core banking solutions market are FIS, Bricknode, Jayam solutions, Forbis, NCR VYOIX Corporation, HCL Technologies Limited, Unisys, Infosys Limited, TATA Consultancy Services Limited, Jack Henry & Associates, Inc., SAP, Oracle, Capgemini., nCino, Finastra, Fiserv Inc., Nelito Systems Pvt. Ltd, Mambu, Chetu Inc., Backbase, Capital Banking Solutions, IBM and among others.
SKU-