Core Banking Software Market Insights, Optimizing Operations And Customer Experience

The global core banking software market size was valued at USD 10.89 billion in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 9.3% from 2023 to 2030. The market growth can be attributed to the rising incorporation of technology to provide core banking operations and services. Digitized operations have enhanced banking service quality and reduced turnover times. Technological advancements have also enabled financial institutions to adapt to changing customer needs, a prominent example being the provision of omnichannel banking access.

In addition to providing customers the ability to manage accounts remotely through online banking and mobile channels, core banking software has multiple other benefits. Core banking software solutions connect multiple branches to a centralized system making them interconnected and allowing for efficient search and comparison of data. Banks can leverage core banking software to analyze data and improve internal processes. Moreover, through transaction monitoring and screening, core banking solutions help detect and prevent money laundering.

Gather more insights about the market drivers, restrains and growth of the Core Banking Software Market

Detailed Segmentation

Solution Insights

The enterprise customer solutions segment dominated the market in 2022 and accounted for more than 46.0% share of the global revenue. The segment’s growth can be attributed to banks and financial institutions adopting a collaborative infrastructure and adopting new solutions. For instance, in April 2023, Intellect Design Arena’s retail banking arm, Global Consumer Banking, launched a core banking platform called eMACH.ai that allows the creation of custom products using artificial intelligence. Leveraging emerging technologies such as machine learning and artificial intelligence, personalized products and services can be provided, thus enhancing the customer experience.

Service Insights

The professional service segment dominated the market in 2022 and accounted for more than a 76.0% share of the global revenue. Core banking software must be tailored to meet each financial institution's requirements and workflows. Professional service providers help banks customize the software to meet their business needs. The primary growth factor for the professional service segment is the increasing need for support services at each level of software deployment, such as the pre-implementation of scope and consulting, project management, and integration.

Deployment Insights

The on-premise segment dominated the market in 2022 and accounted for more than 59.0% share of the global revenue. When building an on-premise system, businesses assume full responsibility for integration and any IT-related and security issues. Companies with legacy platforms often partner with IT service providers to recover data and reduce security concerns and operational costs. It provides more control over the operational infrastructure.

End-use Insights

The banks segment dominated the market in 2022 and accounted for more than 56.0% share of the global revenue. The segment's growth can be attributed to the rising investments in modern IT infrastructure. Automated systems ensure accurate data entry and processing, minimizing erroneous entries. Access to real-time data and advanced analytics enables banks to gain valuable insights into customer behavior, preferences, and financial trends, helping them make data-driven decisions.

Regional Insights

The North American region dominated the market for core banking software in 2022 and accounted for over 27.0% share of global revenue. The North American region is known for early technology adoption across sectors. For instance, in February 2023, Arvest Bank launched its first equipment financing product on cloud technology. The rising emphasis of prominent regional banks to modernize core infrastructure is expected to drive regional growth.

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