Financial Services Software Market Report 2025

The financial services software market size has grown strongly in recent years. It will grow from $151.48 billion in 2024 to $163.79 billion in 2025 at a compound annual growth rate (CAGR) of 8.1%. The growth in the historic period can be attributed to increasing demands for compliance, growing reliance on automation, security concerns, integration of data analytics, rise in mobile banking.

The financial services software market size is expected to see rapid growth in the next few years. It will grow to $253.77 billion in 2029 at a compound annual growth rate (CAGR) of 11.6%. The growth in the forecast period can be attributed to cross-border payment solutions, expansion of robo-advisory services, growth in subscription-based pricing models, wider adoption of smart contracts, increasing use of biometrics. Major trends in the forecast period include hyper-automation, digital currencies, green finance solution, multi-cloud adoption, augmented reality in finance.

The financial services software market is poised for growth, propelled by the increasing adoption of digital channels in the banking industry. Digitalization involves leveraging digital tools in banking processes to manage data efficiently and transform various business functions into more productive and revenue-generating activities. Factors such as digitization, mobile banking, UPI payments, blockchain, artificial intelligence (AI), robotics, and other technological advancements contribute to the expanding market for financial service software. As an example, in May 2022, the Indian government announced plans to deploy 75 user-friendly digital banking units nationwide. Consequently, the rise in the adoption of digital channels within the banking industry serves as a catalyst for the growth of the financial services software market.

The financial services software market is anticipated to experience growth driven by the increasing concerns surrounding cybersecurity. Cybersecurity concerns encompass potential risks, threats, and challenges related to the security of digital systems, networks, and data. Financial services software plays a crucial role in addressing these concerns by incorporating advanced features such as encryption, threat detection, secure authentication, and compliance management. For instance, in January 2023, a report published by CompTIA, a US-based non-profit trade association, highlighted a 48% increase in phishing attacks in the first half of 2022, totaling 11,395 incidents and costing businesses $12.3 million. Approximately 40% of cyber threats now target the supply chain, and ransomware attacks saw a 41% increase in 2022, with identification and remediation taking 49 days longer than the average breach. The expanding Internet of Things (IoT) landscape further adds to cybersecurity concerns. Consequently, the growing apprehensions regarding cybersecurity act as a driving force for the financial services software market.

Leading companies in the financial services software market are increasingly concentrating on the development of innovative technologies, particularly artificial intelligence solutions, to improve operational efficiency and enhance customer experience. Artificial intelligence solutions encompass advanced software tools that utilize machine learning and data analytics to automate processes and provide insights, enabling financial institutions to serve their clients more effectively. For example, in May 2024, Temenos, a Switzerland-based firm specializing in banking software, launched responsible generative AI solutions for core banking systems. These responsible generative AI solutions in financial services software aim to enhance decision-making processes while ensuring compliance with ethical standards. They employ sophisticated algorithms to analyze extensive data sets, allowing for personalized customer experiences and improved risk management through predictive analytics. By automating routine tasks and ensuring transparency, these AI systems assist financial institutions in operating efficiently while mitigating potential biases and safeguarding data security.

In the financial services software market, major companies are prioritizing strategic collaborations to deliver reliable services to customers. Strategic collaboration involves mutually beneficial partnerships between independent entities working together to achieve shared goals aligned with their individual strategic objectives. As an example, in May 2023, Dragonfly Financial Technologies, a US-based digital banking and treasury management company, introduced a composable digital business banking platform aimed at enhancing the customer experience. The Dragonfly platform stands out for its flexibility, agility, and user-friendly design, catering to banks of various sizes. Key features include Banking-as-a-Service solutions for streamlined operations, Dragonfly Digital for a fully-featured UI, and Dragonfly as a Service for a headless platform leveraging APIs and microservices.

In June 2023, Nasdaq, Inc., a prominent US-based financial services corporation, completed the acquisition of Adenza for $10.5 billion. This strategic move broadens Nasdaq's serviceable addressable market to $34 billion, significantly boosting its capabilities in compliance and risk management. The acquisition is anticipated to generate revenue synergies of $50 million in the medium term and $100 million in the long term. Adenza, the acquired company, specializes in providing software applications tailored for the capital markets.

Major companies operating in the financial services software market include Microsoft Corporation, International Business Machines Corporation, Oracle Corporation, SAP SE, Automatic Data Processing Inc., Fidelity National Information Services Inc., Bloomberg L.P., NCR Corporation, Workday Inc., Asseco Group, Capita plc, Black Knight Inc., ACI Worldwide Inc., Hyland Software Inc., Axway Inc., Clearwater Analytics LLC, Calypso Technology Inc., Backbase, Alfa Financial Software Holdings plc, Argo Data Resource Corp., Banqsoft AS, ARCHIBUS Inc., Calyx Technology Inc., AdviseSoft LLC, Clarifire.

North America was the largest region in the financial services software market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the financial services software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the financial services software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The financial services software market involves the sales of software designed for delivering best practices in developing fintech software, assisting organizations in the digital transformation of financial services. This software is specifically created to automate, assist, and store financial information of a personal or professional nature. It manages, analyzes, and processes a collection of financial transactions, records, and processes, serving as a foundation for financial information management. Financial software can operate independently or as part of a financial information system (IS).

The main components of financial services software consist of software and services. The software component is utilized for tasks such as maintaining backups of critical information stored on servers or computer hard disks. Financial services software is designed to offer solutions that facilitate and expedite financial transactions, contributing to the efficiency and effectiveness of financial operations. These software solutions can be categorized into types such as cloud-based and on-premises. Cloud-based financial services software operates over the internet, providing flexibility and accessibility, while on-premises software is installed and runs on the local computing infrastructure of the organization. Both types of software are applicable to a range of enterprises, including large enterprises and small and medium-sized enterprises (SMEs), catering to their specific needs and preferences.

The financial services software market research report is one of a series of new reports that provides financial services software market statistics, including financial services software industry global market size, regional shares, competitors with an financial services software market share, detailed financial services software market segments, market trends and opportunities, and any further data you may need to thrive in the financial services software industry. This financial services software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The financial services software market includes revenues earned by entities by customer experience, enterprise it, audit, risk and compliance management, bi and analytics applications and business transaction processing. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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