The Global Core Banking Solution Market is valued at USD 12.24 Billion in 2021 and is expected to reach USD 32.01 Billion by 2028 with a CAGR of 14.72% over the forecast period.
Global Core Banking Solution Market: Global Size, Trends, Competitive, Historical & Forecast Analysis to 2022-2028, Rising number of online transactions, and high internet penetration in the banking sector are some of the major factors driving the growth of the Global Core Banking Solution Market.
Core banking can be referred to as a back-end system, which involves the processing of banking transactions between different branches of a bank on a single platform. In the core banking solution, the networking of bank branches allows the customer to manage their accounts and use various. Moreover, the core banking system provides customers with banking facilities from any bank branch across the country and provides information on distribution channels. The first experiment was conducted in core banking solutions in 1970 in the United States. In the remaining part of the world, the core banking system was introduced in the 1980s in Europe, Australia, and Asia. When new companies brought forth some innovative and improved ideas of core banking concepts then In the 1990s things and technologies are drastically changed. In three decades, most banks in developed countries have transitioned to core banking systems and set up their centralized data centers.
Covid-19 has also impacted the growth of the core banking solution market due to sudden changes in rules and regulations by the government like lockdown, social distancing, and curfew. In the Covid-19 people are facing a number of problems in a financial platform like, major repositioning in on global platform sudden changes in interest rates and delayed lease payment. And, due to the Covid-19, the low-interest rate situation is also reducing core banking profits in the mature market. However, the adoption of the online transactions during Covid-19 generated more revenue in core banks and it may impact positively on this sector.
The global Core banking solution market is segmented based on component, deployment model, enterprise size, type, and region & country level. Based on components, the global core banking solution is classified into solution and service. Based on the deployment model, the market is classified into on-premise and cloud. Based on enterprise size, the global core baking solution is classified into large enterprises and small and medium enterprises. Based on type global core banking solution is segmented into enterprise customer solutions, loans, deposits and others. Based on end-user, the global core solution is classified into banks, credit unions & community banks, and others.
The regions covered in this global core banking solution market report are Asia-Pacific, North America, Europe, and the Rest of the World. Based on a country level, the market of global core banking solutions is subdivided into the U.S., Mexico, Canada, U.K., France, Germany, Italy, China, Japan, India, Southeast Asia, Middle East Asia (UAE, Saudi Arabia, Egypt) GCC, Africa, etc.
Some of the key players for global Core banking solutions are:
On November 24th, 2021; OneConnect Financial Technology Co., Ltd., launched the Gamma Core banking system. It is a leading technology-as-a-service platform for financial institutions and it is an associate of Ping An Group. Additionally, it is designed to digital restructuring in order to upgrade their underlying architecture, business processes and core systems and help banks undergo a complete top-to-bottom.
On October 22nd, 2020; Temenos launched a Real-Time Saas Data platform for core banking announced a real-time data platform integrated and embedded in Temenos Transact which is a market-leading core banking solution. Temenos Transact Data Hub provides a number of essential data capabilities that are critical for modern banks taking advantage of the power of data contained in core banking platforms.
On August 20th, 2020; FSI offered a wide range of financial products and services, it is an American company. The company announced a launch of a subscription-based core banking product that is ClearEdge, the product is targeted at community banks, per Finovate. It is a cloud-based product and with this product FIS integrates technology from traditional, on-premises models to core banking, to the platform offered as a service for a monthly fee.
An increasing number of online transactions is one of the major factors driving the demand for core banking solutions. For the last few years, people are frequently using online banking and transaction in day-to-day life due to its various benefits and it is supplementing the growth of core banking solutions. In online banking, the majority of banks provide security assured services like this benefit, several are associated with this online banking. Additionally, banks generally use encryption devices to ensure that all client information is protected and there is no risk of a security breach. It ultimately provides customers security from online frauds and account hacking, which has helped to build customers’ trust, thus online transaction preference has gone upward. For example; in 2020 approximately 25.5 billion real-time online transactions were recorded in India over 2019, followed by 15.7 billion in China. In addition, internet access is trending in various platforms and the banking sector is not exceptional. Core banking always results in a significant reduction in operational costs, ensuring less manpower required for implementation with the use of the internet. For instance; China has estimated that there were approximately 168 million internet banking users in the country in 2018. And, growing focus of banks on better recordkeeping, remote data retrievals, customer interaction, and seamless workflow is also fostering key growth of the global core banking solutions market.
However, longer pay-off periods, difficult assimilation into existing channels, adaptability issues, and other types of challenges are expected to hinder the market growth over the forecast period. Despite that, growth of population, high investment, economic growth, infrastructure, development, and these factors may create opportunities for the further growth of the global core banking solution market.
Geographically, North America is expected to account for the largest share of the global Core banking solution market due to the financial institutions that attract international investors, the presence of many local players, the growing tendency of foreign investors to enter the US market, and high research and technological activities in this region. In addition, the market is growing with an emphasis on introducing advanced banking systems to improve their product portfolio.
The Asia Pacific is an emerging region in the core banking solution market due to banks have continuously dominated financial systems across the Asia Pacific region and played an important role in regional economic development. The market growth in this region is attributed to the rising adoption of online banking as well as the high penetration of the internet in various banking applications. Additionally, the increasing growth & development of technology in online banking has also created a major change in different aspects of human life and organizational performance in this region. Traditional banking methods have paved the way for the latest technological innovations with state-of-the-art systems. Of these, the adoption of core banking in India was a pivotal moment. Moreover, India is experiencing higher adoption of online payment platforms backed by increasing government initiatives. For example; the total digital wallet transactions in India nearly doubled to from 124.3 crores in February to 253.2 crores in May, from 124.3 in 2020 according to Reserve Bank of India (RBI) data. Banking and financial institutions have benefited immensely after the introduction of core banking in India. Furthermore, increasing digitization in baking sector and adoption of core baking solutions in china is also driving the market growth in China. For example; Tata Consultancy Services (TCS), India's leading IT service provider, announced the successful deployment of core banking solutions from TCS BaNCS at Panzhihua (PZH) Commercial Bank, China.
On Special Requirement Core Banking Solution Market Report is also available for below Regions and Country:
Middle East and Africa
|Historical data||2015 - 2020|
|Forecast Period||2021 - 2028|
|Market Size in 2021:||USD 12.24 Billion|
|Base year considered||2020|
|Forecast Period CAGR %:||
|Market Size Expected in 2028:||USD 32.01 Billion|
|Tables, Charts & Figures:||175|
|Core banking solution Companies||Capital Banking Solutions, EdgeVerve Systems Limited, Finastra, FIS, Fiserv, Inc., NCR Corporation, Oracle, SAP SE, Tata Consultancy Services Limited, Temenos Headquarters SA, others,|
|Segments Covered||By Component, By Deployment Model, By Enterprise Size, By Type, By End-User|
|Regional Analysis||North America, U.S., Mexico, Canada, Europe, UK, France, Germany, Italy, Asia Pacific, China, Japan, India, Southeast Asia, South America, Brazil, Argentina, Columbia, The Middle East and Africa, GCC, Africa, Rest of the Middle East and Africa|
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