Core Banking Software Market By Solution (Deposits, Loans, Enterprise Customer Solutions, and Others), By Service (Professional Service, and Managed Service), By Deployment (Cloud, and On-premise), By End-use (Banks, Financial Institutions, and Others), and By Region (North America, Europe, Asia Pacific, Latin America, and Middle East and America) – Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data and Forecasts 2022 – 2030

Core Banking Software Market Overview

Core banking software helps in processing day-to-day banking transactions, such as posting updates to accounts. It also aids in loan servicing, interest calculation, opening new accounts, processing deposits and withdrawals, and customer relationship management. Additionally, it lowers operating expenses, decreases human errors, promotes decision-making, ensures less labour requirements for execution, and allows customers to be more accountable. As a result, demand for core banking software has increased significantly over the world. Furthermore, as a result of the prolonged lockdown caused by the coronavirus epidemic, financial institutions were forced to implement remote operating services, which increased demand for core banking solutions and boosted sector growth. Furthermore, increasing adoption of core banking technology to improve customer experience by giving remote access to various financial services, which is a major driver driving core banking solution market growth.

However, as complex core banking software becomes more widespread, security concerns about encrypted data, application vulnerabilities, mobile viruses, and data loss are growing. Credit unions, corporate banks, and financial institutes may see a drop in revenue due to data security and privacy concerns. Furthermore, not all core banking software offers operational flexibility at scale, which could lead to data security concerns and legal risks. Data breaches at several financial organisations and banks have escalated, according to the Financial Conduct Authority (FCA). Flagstar Bancorp, situated in the United States, suffered a data breach in March 2021, resulting in the loss of personal information such as email addresses, social security numbers, phone numbers, and more. To obtain access to the entry, the hacker used the company's data transfer file programme. As a result, as technology advances, the worry for data security grows.

Market Size

According to Business Intelligence Insights “Core Banking Software Market" is expected to grow from USD 10.50 billion in 2021 to USD 28.05 billion by 2030, at a CAGR of 17.80% during the forecast period 2022-2030

Covid -19 Impact Analysis

The COVID-19 pandemic had a negative impact on market growth. The epidemic has had enormous repercussions for many businesses, resulting in a global economic slump. This necessitates the operationalization of programmes by banks all around the world. Many loan accounting, deposit accounting, and core banking systems aren't designed for operational flexibility at scale. As a result, financial institutions and banks all around the world are concentrating on business continuity planning. They are primarily concerned with maintaining uninterrupted branch distribution and customer service activities.

Market Dynamics

•    Drivers

o    Rising adoption of cloud-based solutions among enterprises to aid growth.
o    Increase in online transactions and the increase in the usage of mobile phones.

•    Restraints

o    Information security and privacy concerns associated with banking system.
o    Lack of awareness of technical complexities

Segmentation Insights

By Enterprise Customer Solution:

Enterprise Customer Solutions category dominated the market with more than 47% of the market share

In 2021, the enterprise customer solutions category dominated the market, accounting for over 47% of worldwide sales. Enterprise customer solutions link seamlessly with CRM and ERP systems, and manage management tools and client data through a bank's central database. Data integration for many reasons such as CRM, cross-selling, and regulatory reporting enables banks and financial institutions realise economies of scale. Furthermore, these technologies assist financial institutions in identifying critical business drivers and making decisions that promote client loyalty and happiness.

By Professional Services:

Professional Services category dominated the market with more than 70% of the market share

In 2021, the professional services category led the market, accounting for about 76.0 percent of global revenue. Banks all around the world are working on implementing open-system architecture and cutting-edge technology that is platform agnostic. Professional service providers assist banks in seamlessly integrating these technologies into their current and future operational systems. The growing demand for help at every stage of the software deployment process, including pre-implementation of scope and consulting, project management, and integration, can be ascribed to the expansion of the professional service market. Maintaining a full-time IT department for a small or medium-sized firm can be costly, inefficient, and time-consuming. Professional service providers provide small and medium businesses with on-demand assistance and resources at low IT service costs, boosting the segment's growth.

By Solution
•    Deposits
•    Loans
•    Enterprise Customer Solutions
•    Others

By Service
•    Professional Service
•    Managed Service

By Deployment
•    Cloud
•    On-premise

By End-use
•    Banks
•    Financial Institutions
•    Others

By Region
•    North America
o    U.S.
o    Canada
•    Europe 
o    Germany
o    U.K.
o    France
o    Italy
o    Spain
o    Rest of Europe
•    Asia Pacific 
o    China
o    India
o    Japan
o    Rest of Asia Pacific
•    Latin America 
o    Brazil
o    Mexico
o    Rest of Latin America
•    Middle East and Africa 
o    UAE
o    South Africa
o    Rest of Middle East and Africa (MEA)

Key Players

• Capgemini
• Finastra
• FIS
• Fiserv, Inc.
• HCL Technologies Limited
• Infosys Limited
• Jack Henry & Associates, Inc.
• Oracle Corporation
• Temenos Group
• Unisys

Regional Insights

North America dominated the market with more than 28% of the market share

In 2021, North America dominated the core banking software industry, accounting for about 28% of worldwide sales. The regional market is likely to increase as prominent banks in the region adopt modern core banking software on a broad scale. Furthermore, small and medium businesses in the region are employing these solutions to ensure a smooth flow of funds. Over the projected period, the fast growing sizes of businesses and the expanding areas of application of these solutions are expected to boost the regional market's expansion. In recent years, the region has seen an increase in demand for next-generation cloud-based core banking systems.

However, over the projection period, Asia Pacific is expected to be the fastest-growing regional market. The increasing adoption of mobile and web-based business applications in the banking sector is expected to boost market growth in Asia Pacific. Moreover, several banks in the region are working on implementing core banking systems, which allow them to handle large volumes of transactions and banking services without interruption.

Table

Report Attributes	Details
Market Size Value in 2021	USD 10.50 billion
Market Size Value in 2030	USD 28.05 billion
Growth Rate	+17.80%
Base Year	2021
Forecast Period	2022-2030
Historical Data	2018-2020
Forecast Units	USD Billion
Countries Covered	North America: U.S., Canada, Europe: Germany, U.K., France, Italy, Spain, Rest of Europe, Asia Pacific: China, India, Japan, Rest of Asia Pacific, Latin America: Brazil, Mexico, Rest of Latin America, Middle East and Africa: UAE, South Africa, Rest of Middle East and Africa (MEA)
Segments Covered	By Solution, By Service, By Deployment, By End-use, By Region
Competitive landscape	Leading companies, Competitive strategies and Consumer engagement scope
Customization is available	If our report does not contain the information you require, you can contact our experts to have segments created for you. Please contact us at sales@businessintelligence-insights.com if you have any questions

 

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