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Core Banking Solutions Market Analysis- Industry Size, Share, Research Report, Insights, Covid-19 Impact, Statistics, Trends, Growth and Forecast 2022-2030

Published Date: July, 2022
No of Pages: 162
Delivery Format: PDF+ Excel

$2,950.00

Report Description

The core banking solutions market was worth $9,856.45 million in 2019 and is expected to grow to $28,785.85 million in 2027. This is expected to grow at a CAGR of 14.6 percent from 2020 until 2027.

Core banking is referred to as a backend solution that processes processing banking transactions across bank branches on an integrated platform. Central banking services (CBS) are a bank’s central system responsible for ensuring seamless workflows through the automation of frontend and backend processes within the bank. In addition, CBS provides customers with access to banking services at any branch of a bank worldwide and allows information to be shared across delivery channels. Additionally, CBS helps banks process withdrawals and deposits and improves customer relationship management and transactions.

Core banking solutions assist banks in reducing operational and support costs, providing instant processing of transactions, and helping manage bank accounts by using interconnected branches worldwide. This has been the most important growth factor in the overall market. Furthermore, the increasing acceptance of core banking technologies to enhance banking functionality and the increasing emphasis on improving customer service are key factors driving the market for core banking solutions expansion. However, the lack of understanding about core banking solutions, the huge maintenance cost, and a shortage of trained workforce are among the main factors hindering market expansion.

Furthermore, developing economies provide huge opportunities for banks that provide core banking solutions to broaden and develop their offerings, specifically in emerging economies like Australia, China, India, Singapore, and South Korea. Furthermore, the increase in mergers and acquisitions (M&A) between banks seeking to speed up their existing product development process by installing core banking solutions will provide lucrative opportunities for key players in the market for core banking solutions in the coming years.

Based on the deployment models, the cloud segment was the fastest-growing sector in 2019 and is predicted to keep its position throughout the forecast. Moreover, the surge in the use of cloud computing technology through software-as-a-service (SaaS) to help banks in securing storage & transaction processing further boosts demand for this segment.

The report focuses on the market’s growth potential, constraints, and core banking solutions analysis trends. The report provides Porter’s five force analysis that helps analyze the effect of different factors such as the bargaining power of suppliers as well as the competitive intensity of competitors and the threat of new competitors as well as the threat of substitutes, and the bargaining power of purchasers on the market for core banking services.

Segment review

The main banking solutions market is classified according to the deployment model, the size of an enterprise, the kind, end-user, and location. Based on the component, the market is split into service and solution. For deployment models, it is split into cloud and on-premise. Based on the size of the enterprise market size, it is divided into large as well as small and medium companies (SMEs). It is classified into enterprise-specific customer solutions deposits, loans, and more based on type. The customer market is divided into credit unions, banks and community banks, and others. The market is examined in North America, Europe, Asia-Pacific, and LAMEA.

The report examines the profiles of major players in the banking solutions market. They comprise Capital Banking Solutions, EdgeVerve Systems Limited, Finastra, FIS, Fiserv, Inc., NCR Corporation, Oracle, SAP SE, Tata Consultancy Services Limited, and Temenos Headquarters SA. They have implemented various strategies to expand their market share and improve its standing in the market.

Impact analysis of COVID-19

The COVID-19 virus has an enormous influence on the banking services market due to the increased usage and acceptance of digital and online financial services worldwide. Moreover, several regions have imposed lockdowns to curb the spread of the virus. Therefore, core banking solution providers offer software-as-a-service platforms, which help banks maintain banking operations and sustain the market during the pandemic. This is why it has been one of the main growth drivers for the core banking solution market in the current world health crisis.

Top factors that impact

Increase in the use of banking technology that is core to the system

The banking industry has evolved into an early adopter of new technology like cloud computing and application programming interfaces (APIs) and Artificial Intelligence, Data Analytics robot process automation (RPA) chatbots, machine learning, and blockchain, to name a few. Furthermore, thanks to the application of banking core services, banks can now conduct an effective analysis of their customers while helping customers complete the usual banking transactions efficiently. To improve banking capabilities, banks are now implementing core banking solutions to offer enhanced value-added and integrated services. Therefore, banks’ adoption and implementation of core banking solutions drive the development of core banking solution market development.

A huge maintenance cost and lack of skilled workforce

The absence of skilled workers who are required to complete extremely advanced work in the financial industry is one of the main causes of the decline in the market’s growth. Furthermore, maintaining the highest levels of accuracy, speed, and cost-efficiency, banking operations, and a proper introduction of the core banking services are not available in the banking industry. Furthermore, the large initial investment and maintenance costs associated with the program are anticipated to limit the core banking solution market expansion.

The growth in mergers and acquisitions of banks and financial institutions across different regions

As core banking expands, mergers and acquisitions, the major players are trying to speed up their product development processes on the market. Furthermore, banks and financial institutions are implementing innovative strategies for ongoing business operations rather than re-building from scratch. To meet customers’ requirements and improve automated banking services that run on one platform, financial institutions need to modernize the banking system that they rely on for their core. In making acquisitions and mergers to run faster, more efficiently, and deliver real-time customer experiences, banks and financial institutions will be required to adopt and adopt core banking services. These elements, therefore, are predicted to bring a massive market opportunity for the market for core banking solutions in the coming years.

Asia-Pacific is expected to show the most impressive CAGR of 16.3 percent between 2020 and 2027.

The key benefits for the stakeholders

  • The study offers a comprehensive analysis of the core banking solutions in the world market share, as well as forecasted and current developments to highlight the coming investment pockets.
  • Details on the important drivers, constraints, and opportunities, as well as their impact on market size for core banking solutions, are included in the report.
  • Porter’s five forces analysis highlights the potential of buyers and suppliers in the business.
  • An in-depth study of the most important segments of the market helps to comprehend the global market for core banking developments.
  • An analysis quantitative of the worldwide market for core banking solutions from 2020 until 2027 will be provided to assess the market’s potential.

Core Banking Solutions Market Report Scope and Segmentation

ATTRIBUTESDETAILS
ESTIMATED YEAR2022
BASE YEAR2021
FORECAST YEAR2030
HISTORICAL YEAR2017-2021
UNITValue (USD Million/Billion)
BY REGIONNorth America, Europe, Asia Pacific, Latin America, Middle East and Africa

Key market segments

By Component

  • Solution
  • Service

by Deployment Model

  • On-premise
  • Cloud

By Enterprise Size

  • Large Enterprises
  • Small & Medium Enterprises (SMEs)

In Type

  • Enterprise Customer Solutions
  • Loans
  • Deposits
  • Other

by the End-User

  • Banks
  • Credit Unions & Community Banks
  • Other

In Region

    • North America
      • US
      • Canada
      • Mexico
    • Europe
      • Germany
      • Italy
      • France
      • UK
      • Spain
      • Poland
      • Russia
      • The Netherlands
      • Norway
      • Czech Republic
      • Rest of Europe
    • Asia Pacific
      • China
      • Japan
      • India
      • South Korea
      • Indonesia
      • Malaysia
      • Thailand
      • Singapore
      • Australia & New Zealand
      • Rest of Asia Pacific
    • South America
      • Brazil
      • Argentina
      • Colombia
      • Rest of South America
    • The Middle East & Africa
      • Saudi Arabia
      • UAE
      • South Africa
      • Northern Africa
      • Rest of MEA

Market players with a key role

  • Capital Banking Solutions
  • EdgeVerve Systems Limited
  • Finastra
  • FIS
  • Fiserv, Inc.
  • NCR Corporation
  • Oracle
  • SAP SE
  • Tata Consultancy Services Limited
  • Temenos Headquarters SA

1 EXECUTIVE SUMMARY

1.1 GLOBAL CORE BANKING SOLUTION MARKET, BY DEPLOYMENT 18

1.2 GLOBAL CORE BANKING SOLUTION MARKET, BY COMPONENT 19

1.3 GLOBAL CORE BANKING SOLUTION MARKET, BY REGION 20

2 MARKET INTRODUCTION

2.1 DEFINITION 21

2.2 SCOPE OF THE STUDY 21

2.3 RESEARCH OBJECTIVE 21

2.4 MARKET STRUCTURE 22

3 RESEARCH METHODOLOGY

3.1 RESEARCH PROCESS 23

3.2 PRIMARY RESEARCH 24

3.3 SECONDARY RESEARCH 25

3.4 MARKET SIZE ESTIMATION 25

3.5 FORECAST COVERAGE TYPE 27

3.6 LIST OF ASSUMPTIONS 28

4 MARKET DYNAMICS

4.1 INTRODUCTION 29

4.2 DRIVERS 30

4.2.1 GROWING DEMAND FOR IMPROVED CUSTOMER SERVICE 30

4.2.2 GROWING NEED TO MANAGE BANKING OPERATIONS FROM A CENTRALIZED SERVER 30

4.3 RESTRAINTS 31

4.3.1 INCREASING RATE OF CYBER ATTACKS IN BANKING 31

4.4 OPPORTUNITIES 31

4.4.1 INCREASING ADOPTION OF CLOUD-BASED CORE BANKING SYSTEMS 31

4.5 CHALLENGE 32

4.5.1 LACK OF AWARENESS AND ADOPTION OF ADVANCED BANKING TECHNOLOGIES IN DEVELOPING COUNTRIES 32

5 MARKET FACTOR ANALYSIS

5.1 VALUE CHAIN ANALYSIS 33

5.1.1 CORE BANKING SOLUTIONS AND SERVICE PROVIDERS 34

5.1.2 VALUE ADDED RESELLERS 34

5.1.3 SYSTEM INTEGRATORS 34

5.1.4 END-USERS 35

5.2 PORTER’S FIVE FORCES ANALYSIS 35

5.2.1 THREAT OF NEW ENTRANTS 36

5.2.2 BARGAINING POWER OF SUPPLIERS 36

5.2.3 BARGAINING POWER OF BUYERS 36

5.2.4 THREAT OF SUBSTITUTES 36

5.2.5 INTENSITY OF RIVALRY 36

6 GLOBAL CORE BANKING SOLUTION MARKET, BY DEPLOYMENT

6.1 OVERVIEW 37

6.1.1 ON-PREMISE 38

6.1.2 CLOUD 38

7 GLOBAL CORE BANKING SOLUTION MARKET BY COMPONENT

7.1 OVERVIEW 39

7.1.1 SOLUTION 40

7.1.1.1 GLOBAL CORE BANKING SOLUTION MARKET, BY SOLUTION 40

7.1.1.1.1 ACCOUNT PROCESSING 41

7.1.1.1.2 DEPOSIT 41

7.1.1.1.3 LOAN 41

7.1.1.1.4 ENTERPRISE CUSTOMER SOLUTION 41

7.1.1.1.5 OTHERS 41

7.1.2 SERVICES 42

7.1.2.1 GLOBAL CORE BANKING SOLUTION MARKET, BY SERVICES 42

7.1.2.1.1 PROFESSIONAL SERVICES 42

7.1.2.1.2 MANAGED SERVICES 42

8 GLOBAL CORE BANKING SOLUTION MARKET, BY REGION

8.1 OVERVIEW 43

8.2 NORTH AMERICA 45

8.2.1 NORTH AMERICA: CORE BANKING SOLUTION MARKET, BY COUNTRY, 2020–2027 (USD MILLION) 46

8.2.2 NORTH AMERICA: CORE BANKING SOLUTION MARKET, BY DEPLOYMENT, 2020–2027 (USD MILLION) 46

8.2.3 NORTH AMERICA: CORE BANKING SOLUTION MARKET, BY COMPONENT, 2020-2027 (USD MILLION) 47

8.2.3.1 NORTH AMERICA: CORE BANKING SOLUTION MARKET, BY SOLUTION, 2020-2027 (USD MILLION) 47

8.2.3.2 NORTH AMERICA: CORE BANKING SOLUTION MARKET, BY SERVICES, 2020-2027 (USD MILLION) 48

By Component

  • Solution
  • Service

by Deployment Model

  • On-premise
  • Cloud

By Enterprise Size

  • Large Enterprises
  • Small & Medium Enterprises (SMEs)

In Type

  • Enterprise Customer Solutions
  • Loans
  • Deposits
  • Other

by the End-User

  • Banks
  • Credit Unions & Community Banks
  • Other
  • Capital Banking Solutions
  • EdgeVerve Systems Limited
  • Finastra
  • FIS
  • Fiserv, Inc.
  • NCR Corporation
  • Oracle
  • SAP SE
  • Tata Consultancy Services Limited
  • Temenos Headquarters SA

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