The core banking service market has been thoroughly evaluated by Future Market Insights in its most recent report, “Core Banking Solution Market: Global Industry Analysis 2012-2016 and Opportunity Assessment 2017-2027.” The market is expected to grow at a strong CAGR of 5.1% during the forecast period.
Component – Software Dominates Services Component in Core Banking Solution Market
In the market for core banking solutions, the software component is bigger than its service counterpart and is predicted to increase significantly in BPS throughout the study. By 2027, the software market might be worth US$65 billion and experience consistent revenue growth throughout the ensuing ten years.
Region – North America Critical in Core Banking Solution Market
The core banking solution market’s largest region is North America, which is expected to keep its top spot for the foreseeable future. But until the end of 2027, Western Europe is expected to grow by a staggering 250 BPS, making the developed world the center of the core banking solution market. By 2027, the US is expected to account for about US$ 3.9 billion of the market for core banking solutions in North America. However, Canada is expected to see a higher CAGR during this period, creating a profitable opportunity for the market’s major players in core banking solutions.
End Users – Banks Have Maximum Need for Core Banking Solutions
The market for core banking solutions is dominated by banks, and this is likely to continue for some time. In the market for core banking solutions, banks have a market attractiveness index of 5.0 by the end user, which is significantly higher than that of financial institutions. From 2017 to 2027, the bank segment is expected to experience the greatest CAGR of 5.6%. The market for core banking solutions should gain from the new trend of branchless banking because it enables banks to serve the needs of consumers in remote rural areas who are unable to access physical banks. This is especially important in underdeveloped emerging markets like APEJ and Latin America.
Competition Dashboard in the Core Banking Solution Market
Some of the market participants for core banking solutions have been profiled by Future Market Insights. SAP SE, Oracle Corporation, Infosys Limited, FIS (Fidelity Information Services), Tata Consultancy Services Private Limited, Misys, HCL Technologies Limited, Temenos Group AG, Capgemini, Infrasoft Technologies Ltd., IBM Corporation, Nelito Systems Ltd., COBISCORP, and Wipro Limited are the companies in question.
Customer Satisfaction and Retention Critical in Core Banking Solution Market
Retail banks are currently faced with the difficulty of customer retention due to the fierce competition in the banking industry, and core banking solutions are the conduit between banks and their clients to ensure this is addressed. Core banking technologies let banks conduct efficient consumer analyses while also permitting regular banking activities for customers. The fundamental banking solutions increase customer satisfaction and significantly lessen client effort.
North America and Europe have Well-Developed Financial Infrastructure
The financial centers of the world are located in North America and Europe, with New York and London serving as the two main hubs. By the end of 2027, the Western Europe banks section is projected to be worth close to US$ 3 billion, which would make it about twice as big as the financial institutions at that time. The North American bank’s segment has comparable potential as it is anticipated to surpass US$ 3.1 billion by the end of 2027.
Key players in the core banking solutions market would be well to concentrate their efforts on rising nations like India, whose governments are actively wooing FDI and providing a wealth of undiscovered prospects. The client base of a bank will inevitably grow as it expands into emerging markets, therefore core banking solution providers must offer reliable, fully functional products that let banks manage rapidly growing customer data while conducting banking operations. Large banks and financial organizations have also ridden the globalization wave and now provide their clients with 24/7 accessibility. By providing one-stop centralized solutions that monitor the bank’s global network and guarantee anytime, anywhere customer accessibility, core banking solution suppliers can profit from this.
Core Banking Solution Market Taxonomy
- Financial Institution
- North America
- Western Europe
- Eastern Europe
- Latin America