Core banking solution companies provide comprehensive software and systems that manage core banking functions, including customer accounts, transactions, and financial operations. These solutions are the backbone of banking institutions, supporting activities such as online banking, branch operations, and compliance. Core banking solution companies play a critical role in the financial industry, ensuring secure and efficient banking services.
Competitive Landscape of Core Banking Solution Market
The core banking solution market is a dynamic and increasingly competitive space, fueled by the constant evolution of technology and the growing demands of financial institutions. This market plays a crucial role in enabling banks to deliver efficient and customer-centric services, while ensuring regulatory compliance and operational agility.
Key Players:
Strategies Adopted:
To maintain their competitive edge in this dynamic market, key players are adopting various strategies, including:
Factors for Market Share Analysis:
Several factors impact market share analysis in the core banking solution market, including:
New and Emerging Companies:
Several new and emerging companies are disrupting the core banking solution market with innovative offerings, including:
Current Company Investment Trends:
Current investment trends in the core banking solution market focus on:
Latest Company Updates:
Temenos has introduced an industry-first secure solution for banks in 2023 that uses Generative Artificial Intelligence (AI) to categorise consumer banking activities automatically. By offering more relevant goods and offers, transaction classification enables banks to improve client loyalty, deliver more engaging and user-friendly digital banking experiences, and provide personalised insights and suggestions.
The SBP Core Platform, a core banking system supported by artificial intelligence (AI), was introduced by Sopra Banking Software (SBS) in 2023. According to a news release from the international FinTech company, the cloud-native platform leverages the potential of cloud technology and artificial intelligence. According to Eric Bierry, CEO of Sopra Banking Software, the SBP Core Platform has an open architecture, great scalability, and integrated AI capabilities.
The Wipro Industry Innovation Experience for Financial Services, which will debut a new set of banking and financial services solutions based on Microsoft Cloud, was announced by Wipro for 2023. The Innovation Experience will combine the strengths of Wipro FullStride Cloud and Microsoft Cloud with the in-depth financial services sector knowledge of Capco and Wipro.
The Clockwise Credit Union in Leicester, UK, is the first credit union in the country to introduce a self-built, cloud-native core banking solution in 2023. The credit union's technology team created and developed the new system, called Clockwise Core, internally. Customer relationship management (CRM), decision-making, mobile app, business intelligence, loan origination, and core banking are all included.
Oracle Banking Cloud Services is a new suite of componentized and composable cloud native services that was introduced in 2023 by the US-based cloud technology corporation Oracle. The six new services enable banks to process corporate demand deposit accounts that are scalable, manage collateral and restrictions throughout the entire organisation, process ISO20022 international payments in real-time, manage APIs, enrol and originate retail clients, and develop new digital experiences for self-service.
Core Banking Solution Market Size was valued at USD 10,701.2 million in 2021. The Core Banking Solution market industry is projected to grow from USD 12,412.4 million in 2022 to USD 36,752.6 million by 2030, exhibiting a compound annual growth rate (CAGR) of 14.5% during the forecast period (2024 - 2030). Growing demand for improved customer experience and the growing need to manage banking operations from a centralized server are the key drivers fueling the growth of the market.
FIGURE 1: CORE BANKING SOLUTION MARKET 2018-2030
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
In response to the COVIDâ19 pandemic, the World Health Organization (WHO) had recommended preventive measures to lessen close contact between human interaction and public gatherings. Subsequently, the pandemic forced banking sector turned to online in order to cater the customerâs remotely with safety measures. COVID-19 pandemic acted as the catalyst for the adoption of core banking solutions to efficiently manage the banking processes during the pandemic. During the pandemic, cloud-based solutions were on the peak demand. The COVID-19 pandemic created a new urgency for cloud solutions. With continued banking disruption, the traditional core architecture wasnât enough to deliver new products and services at the required pace. In the post-pandemic world, the mindset of customerâs has also been changed and already adopted the online world as a more convenient way for the banking. These trends are continued and is expected to open significant demand for cloud-based core banking solutions during the projected period as well. The core banking solution providers are also integrating new technologies to grab the opportunity created after the pandemic.
Adoption of Advanced Technologies such as Cloud, Artificial Intelligence (AI), and Analytics
Many banks have accelerated the digital transformation by means of providing improved customer experience, expand product and services offerings, to comply constantly changing regulatory landscape. However, banks are seeking for the core banking solutions with less infrastructure costs. The adoption of cloud-based (Software as a Service) model is benefitting banks in many ways and the trend is keep continued. Infrastructure savings due to flexible pricing, expansion and agility on demand, and security and availability are the prime factors driving the adoption of cloud-based core banking solutions. Artificial Intelligence (AI) technology and analytics are also gaining significant traction among the banking sector. Over the past decade, the amount of structured and unstructured data available to banks has skyrocketed. With advances in cloud computing and machine learning technologies, artificial intelligence is shaping the prospects of banking and financial institutions. With the data history captured around Artificial Intelligence, core banks will be able to make more informed decisions on various functions, including back-office operations, customer experience, marketing, and product management.
The core banking solution market segmentation, based on Component, Solution and Services. By solution, the core banking solutions market has been categorized as deposits, loans, enterprise customer solutions, account processing, and others. The solutions segment accounted for the largest market share as these solutions allow inter-connectivity between branches of the same financial institution and bank and facilitate the management of loan, deposit, and credit processing. These solutions are integrated with a back-end system, which efficiently processes various banking transactions across the multiple branches of a bank.
January 2023, Tata Consultancy Services announced that CTBC Bank, Taiwan, has chosen TCS BaNCSTM for Banking and Wealth Management to digitally transform its company and drive future growth.
FIGURE 2: Core Banking MARKET SIZE BY COMPONENT 2021 VS 2030 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Based on Deployment, the core banking solution market is segmented into On-premises and Cloud. The on-premises segment dominated the market in 2022 and accounted for XX shares of the revenue. When building an on-premises system, businesses assume the full responsibility of integration and any IT-related and security issues. Companies with legacy platforms often partner with IT professionals for the data recovery process and to reduce security concerns and operational costs.
Based on the end user, the market has been segmented into banks and financial institutions. The banks segment dominated the market in 2022 in the core banking market. The huge improvements in information technology and the expanding internet network are responsible for the segment's rise. These technologies aid banks in minimizing manual labor and enhancing operational effectiveness. Multiple bank branches have the main banking software installed, and these branches are then linked together by computer networks based on satellite, phone, and internet connections. Core banking solutions are projected to be used by banks because of their advantages, such as greater efficiency and accessibility, decreased additional expenses, and increased system flexibility in the market.
January 2023, Tata Consultancy Services announced that CTBC Bank, Taiwan, has chosen TCS BaNCSTM for Banking and Wealth Management to digitally transform its company and drive future growth.
May 2022, Temenos have extended their relationship to run Temenos onboarding and origination solutions on AWS. The technology collaboration aims to allow all retail and commercial banks - incumbents and challengers - to provide digital onboarding and origination solutions with higher performance, scalability, and security. It will give banks greater agility while reducing time to market and improve cost efficiency. The two companies will go-to-market with solutions for retail, business, corporate and private banking, and wealth.
By region, the study segments the market into North America, Europe, Asia-Pacific, the Middle East & Africa, and South America. North America is expected to hold the largest market share in 2021. The US is the biggest market for core banking solutions. The country has been attracting international investors because it has a higher number of financial institutions than any other country. The North American market is highly dominated by local players, resulting in significant entry barriers. However, witnessing huge growth in the region, foreign investors are getting increasingly inclined to enter the US market. Also, the core banking solutions have been widely deployed among medium & large sized banks with assets worth more than USD 1 billion.
Furthermore, the proliferation of vendors providing services to a large number of banks is fueling the growth of the Core Banking Solution market in North America. For instance, Technisys offers banking software, Cyberbank Core, which is designed to minimize operational and technology costs while increasing profits and customer satisfaction. Additionally, the countryâs banking industry is becoming increasingly digitalized, and it is projected that by 2022, the US banks are likely to invest heavily in technology for banking.
FIGURE 3: Core Banking Solution MARKET SIZE BY REGION 2021 VS 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The market is characterized by stiff competition from well-known companies in this sector and is moderately fragmented. Some of the important strategies used by major competitors to ensure long-term survival in the market include joint ventures, partnership agreements, mergers and acquisitions, product developments, regional expansions, and an increased focus on R&D efforts.
JAYAM SOLUTIONS PRIVATE LIMITED
Capgemini SE
Fiserv, Inc.
Infosys Ltd
Tata Consultancy Services Limited
Oracle Financial Services Software Ltd
Temenos AG
Fidelity National Information Services Inc.
September 2021Â The latest offering from SAP SE (SAP) and the recently established business Dediq GmbH, SAP Fioneer, has begun to be made available to the financial services sector (FSI). Entrepreneurial investor Dediq GmBH concentrates on digital and information technology companies.
February 2022Â The core banking software company Finxact, which offers cloud technology and open development tools for quicker IT updates and is well-liked by bank technology investors, has agreed to sell a stake to Finiserv for $650 million.
November 2021Â Infosys Finacle, part of EdgeVerve Systems, a wholly-owned subsidiary of Infosys and IBM, announced that the Finacle Digital Banking Solution Suite will be available on Red Hat OpenShift and IBM Cloud for financial services. This collaboration will help banks scale business transformation, become more agile, and power their growth with an on-demand portfolio of products and services.
January 2020, Fidelity National Information Services has partnered with Union Bank, a member of MUFG Americas Holdings to deliver next-generation core banking solutions to the bank. Union Bank will use the FIS modern banking platform to drive innovation and address the evolving needs of its clients
Solutions
Account Processing
Deposit
Loan
Enterprise Customer solution
Others
Services
Professional Services
Managed Services
On-Premises
Cloud
SMEs
Large Enterprises
Banks
Financial Institutions
North America
US
Canada
Mexico
Europe
Germany
France
UK
Rest of Europe
Asia-Pacific
China
Japan
India
Rest of Asia-Pacific
Middle East & Africa
South America
Core Banking Solutions Market Highlights:
Š 2024 Market Research Future Ž (Part of WantStats Reasearch And Media Pvt. Ltd.)