The global Core Banking Software Market size is expected to reach USD 17.48 billion by 2028, registering a CAGR of 7.8% from 2021 to 2028, according to a new report by Grand View Research, Inc. Core banking software allows customers to get access to banking services through multiple channels, such as web and mobile banking, while also allowing them to carry out their banking activities from any branch location. Increasing customer demand for advanced banking technologies is anticipated to drive the market growth over the forecast period.
The growth of the market can be attributed to the increase in consumer preference for digital channels to meet their banking needs. Core banking software helps reduce business costs, protect data, manage risks, and segregate clients using a targeted and efficient approach. Core banking software allows banks to seamlessly merge back-office data and self-service operations.
The advent of telecommunication and computer technology is allowing businesses to share finance information with bank branches efficiently and quickly. Moreover, banks are focusing on moving to core banking applications to support their investment operations via a Centralized Online Real-time Exchange (CORE) of transaction data. Financial institutions and banks are adopting core banking software as it enables them to facilitate decision making through real-time reporting and analytics.
While the market is expected to witness steady growth in the near future, the COVID-19 pandemic is anticipated to adversely impact the market to a certain extent. However, the increasing demand for managing customer accounts from a single or centralized server is expected to fuel market growth. Increasing investments in core banking system updates to handle a growing volume of product-channel financial transactions is anticipated to propel the market growth over the forecast period.
Related Press Release@ Core Banking Software Market Report
Core Banking Software Market Report Highlights
- The enterprise customer solutions segment is expected to witness significant growth over the forecast period as these solutions help banks in streamlining current business processes with advanced banking technology
- The core banking managed services model provides banks and financial institutions with a competitive edge by ensuring high usability, complete functionality, bug-fixing, and timely upgrades. This, in turn, is expected to drive the growth of the segment over the forecast period
- Banks and financial institutions can leverage the power of cloud-based applications. These solutions are deployed and developed as a set of flexible microservices with the help of Platform-as-a-Service (PaaS) tools. These solutions help banks and financial institutions in reducing operational costs, boost performance, and accelerate business growth, thereby driving the adoption of cloud-based solutions
- The growing need to increase productivity and operational efficiency of banks is expected to drive the adoption of core banking software across banks over the forecast period
- The promising rate of development of rural and private banking in developing economies such as China and India is anticipated to create growth opportunities for the Asia Pacific regional market