Banking software is an enterprise software system that is used by the banking industry to provide and manage the financial products they provide. Within retail banks, banking software typically refers to core banking software and all its interfaces that allow them to connect to other modular software and interbank networks. Within investment banking, banking software typically refers to the trading software used to access capital markets. Moreover, with the implementation of new technology, banks are searching for methods to modernize their processes and enhance the client experience. This Includes building software programs that might automate manual procedures, lower mistake rates, and deliver real-time data. Thus, there is a rising need for software programs for digital banking that might aid in the banking sector’s transformation.
Increase in demand for digital banking solutions and the surge in adoption of cloud-based solutions is boosting the growth of the global banking software market. in addition, Increase in use of mobile banking the positively impacts growth of the banking software market. However, security issues and privacy concerns and high implementation cost is hampering the banking software market growth. On the contrary, Increase in the adoption of Artificial Intelligence based banking system is expected to offer remunerative opportunities for expansion of the banking software market during the forecast period.
The banking software market is segmented on the basis of component, deployment mode, end user, and region. On the basis of component, the market is categorized into software and service. On the basis of deployment mode, the market is fragmented into on-premise and cloud. On the basis of end user, the market is bifurcated into banks and financial institution. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The key players that operate in the banking software market are Oracle Corporation, SAP SE, Tata Consultancy Services Limited, Finastra International Limited, IBM Corporation, EdgeVerve Systems Limited, Fidelity National Information Services Inc, Fiserv Inc, Microsoft Corporation, and Salesforce.com, Inc. These players have adopted various strategies to Increase their market penetration and strengthen their position in the industry.
Increase in demand for digital banking solutions and the surge in adoption of cloud-based solutions is boosting the growth of the global banking software market. in addition, Increase in use of mobile banking the positively impacts growth of the banking software market. However, security issues and privacy concerns and high implementation cost is hampering the banking software market growth. On the contrary, Increase in the adoption of Artificial Intelligence based banking system is expected to offer remunerative opportunities for expansion of the banking software market during the forecast period.
The banking software market is segmented on the basis of component, deployment mode, end user, and region. On the basis of component, the market is categorized into software and service. On the basis of deployment mode, the market is fragmented into on-premise and cloud. On the basis of end user, the market is bifurcated into banks and financial institution. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The key players that operate in the banking software market are Oracle Corporation, SAP SE, Tata Consultancy Services Limited, Finastra International Limited, IBM Corporation, EdgeVerve Systems Limited, Fidelity National Information Services Inc, Fiserv Inc, Microsoft Corporation, and Salesforce.com, Inc. These players have adopted various strategies to Increase their market penetration and strengthen their position in the industry.
Key Benefits for Stakeholders
- The study provides an in-depth analysis of the global banking software market forecast along with the current and future trends to explain the imminent investment pockets.
- Information about key drivers, restraints, and opportunities and their impact analysis on global banking software market trend is provided in the report.
- The Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
- The quantitative analysis of the market from 2023 to 2032 is provided to determine the market potential.
Key Market Segments
By Deployment Mode
- On-premise
- Cloud
By End User
- Banks
- Financial Institution
By Component
- Solution
- Service
By Region
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Market Players
- EdgeVerve Systems Limited
- Fidelity National Information Services Inc
- Finastra International Limited
- Fiserv Inc
- IBM Corporation
- Microsoft Corporation
- Oracle Corporation.
- Salesforce.com, Inc.
- SAP SE
- Tata Consultancy Services Limited
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: BANKING SOFTWARE MARKET, BY COMPONENT
CHAPTER 5: BANKING SOFTWARE MARKET, BY DEPLOYMENT MODE
CHAPTER 6: BANKING SOFTWARE MARKET, BY END USER
CHAPTER 7: BANKING SOFTWARE MARKET, BY REGION
CHAPTER 8: COMPETITIVE LANDSCAPE
CHAPTER 9: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to a new report, titled, 'Banking Software Market,' The banking software market was valued at $11.7 billion in 2022, and is estimated to reach $69.9 billion by 2032, growing at a CAGR of 19.8% from 2023 to 2032.Banking software provides tailored solutions to meet the particular needs of potential customers. Worldwide, mid and large-size institutions can access cutting-edge technology and cost-effective banking solutions owing to banking software. The widespread use of smartphones and the internet has increased the demand for financial system software. Customers may now manage their accounts as well as complete transactions with the help of mobile personal devices due to the growth of digital banking, which has increased the need for reliable, secure, and cutting-edge solutions that improve customer experience.
Key factors driving the growth of the banking software market include increase in demand for digital banking solutions and Surge in adoption of cloud-based solutions, and increase in use of mobile banking. With the increasing use of smartphones and other mobile devices, mobile banking is becoming more commonplace. In addition, banking system software providers may provide solutions that enable banks and financial institutions to provide seamless mobile banking experiences to their customers. For instance, in August 2022, Unlimint launched Banking as a Service (BaaS) application programming interface (API) platform product and Unlimint Banking and Cards (UBC), according to the firm, its new product offerings allow companies globally to launch and embed digital payment products for their customers based in the European Economic Area, United Kingdom, and Latin America region. Moreover, the expansion of mobile banking is fueled by an increase in demand for self-service and personalization of products and services, which in turn drives market growth. Furthermore, technical improvements in mobile banking, such as the delivery of customized real-time customer support via smart bots, as well as an increase in the use of mobile devices that allow users to access instant customer help, are propelling market expansion.
The market also offers growth opportunities to the key players in the market. Increase in adoption of technologies such as the cloud, big data, and artificial intelligence (AI) is changing the landscape of banking industry. In addition, the integration of such technologies with the banking process assists in advancing their visualization capabilities, resolving customer queries, and making complicated data usable. Moreover, these technologies help in increasing connectivity and providing advanced security methods in banks & financial institutions. For instance, according to SAS insights, 30% of the employees in the banking industry rely on and trust AI driven outputs and utilize them for enhanced business analysis.
Furthermore, AI-based banking software provides real time insights to end-users and helps to improve network security, accelerating digital businesses and offering a better customer experience. The rising adoption of such technologies is expected to create numerous opportunities for players in the market. Key companies focus on completing partnerships and collaborations with other players to launch advance solutions based on core technologies such as AI and others. For instance, in January 2023, Temenos launched the next generation of its AI-driven, corporate Lending solution to enable banks to consolidate global commercial loan portfolios and unify servicing all on the Temenos banking platform.
Moreover, the solution simplifies complex loan processing and lifecycle management across lending lines and geographies, addressing the needs of large tier one as well as regional banks, many of which are struggling to seize the growth opportunity in corporate lending due to disparate systems and a lack of integration. These technical developments in improved AI standards will significantly pave numerous opportunities for global market growth.
The banking software market is segmented on the basis of component, deployment mode, end user, and region. On the basis of component, the market is categorized into software and service. On the basis of deployment mode, the market is fragmented into on-premise and cloud. On the basis of end user, the market is bifurcated into banks, and financial institution. Region wise, it is analyzed across North America (the U.S., Canada), Europe (the UK, Germany, France, Spain, Italy, and rest of Europe), Asia-Pacific (China, Japan, South Korea, India, Australia, and rest of Asia-Pacific), and LAMEA (Latin America, Middle East and Africa).
The key players profiled in the study include Oracle Corporation, SAP SE, Tata Consultancy Services Limited, Finastra International Limited, IBM Corporation, EdgeVerve Systems Limited, Fidelity National Information Services Inc, Fiserv Inc, Microsoft Corporation, and Salesforce.com, Inc. The players in the market have been actively engaged in the adoption various strategies such as acquisition, and partnership to remain competitive and gain advantage over the competitors in the market. For instance, in March 2023, Finastra partnered with Aspire Systems to enable financial institutions worldwide to transform their payments operations and accelerate their instant payments offerings.
Key Market Insights
- By component, the software segment was the highest revenue contributor to the market and is estimated to reach $42,884.53 million by 2032, with a CAGR of 18.7%. However, the service segment is estimated to be the fastest-growing segment with a CAGR of 21.9% during the forecast period.
- By deployment mode, the on-premise segment dominated the global market and is estimated to reach $38,306.49 million by 2032, with a CAGR of 18.4%. However, the cloud segment is expected to be the fastest-growing segment with a CAGR 21.7% during the banking software market forecast.
- Based on region, North America was the highest revenue contributor, accounting for $4,433.83 million in 2022, and is estimated to reach $19,075.11 million by 2032, with a CAGR of 15.9%.
Companies Mentioned
- EdgeVerve Systems Limited
- Fidelity National Information Services Inc
- Finastra International Limited
- Fiserv Inc
- IBM Corporation
- Microsoft Corporation
- Oracle Corporation.
- Salesforce.com, Inc.
- SAP SE
- Tata Consultancy Services Limited
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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