Authored By: Sarah
16 Jul 2024

 Third-party Banking Software Market Size to grow by USD 12.31 billion between 2024-2028

According to a research report “ Third-party Banking Software Market” by Type (Core banking software, Omnichannel banking software, Business intelligence software, Wealth management software) Deployment (On-premises, Cloud) Geography (North America, Europe, APAC, South America, Middle East and Africa)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 12.31 billion, at a CAGR of 7.55% during the forecast period. In the global banking sector, the shift towards digital payments is gaining momentum, with digital transactions projected to account for approximately 90% of total spending in Canada by 2030. Consequently, numerous banking enterprises worldwide are responding to this trend by introducing digital payment solutions to streamline operations and secure a competitive edge. For instance, American Express Company offers the American Express vPayment, a digital payment system, which utilizes virtual account numbers, replacing traditional plastic cards. This innovative solution enables businesses to seamlessly pay and settle a diverse range of corporate expenses. Other banking institutions are also following suit, recognizing the importance of digital payment offerings in the modern financial landscape..

Browse market data tables, figures, and in-depth TOC on “Third-party Banking Software Market” by Type (Core banking software, Omnichannel banking software, Business intelligence software, Wealth management software) Deployment (On-premises, Cloud) Geography (North America, Europe, APAC, South America, Middle East and Africa) Global Forecast to 2028. Download Free Sample

 

By Type, the Core banking software segment is projected to dominate the market size in 2024

The core banking software segment encompasses solutions that support essential banking functions, including loan processing, credit management, deposit handling, and funds transfer. These systems enable multi-channel access through ATMs, internet banking, and phone banking. The global third-party core banking software market is poised for expansion due to the increasing penetration of retail banking. Government initiatives, such as those in India encouraging account opening, fuel retail banking growth. This trend is driving demand for robust core banking software among financial institutions, leading vendors to innovate and offer advanced solutions.

By Deployment, On-premises  segment is expected to hold the largest market size for the year 2024

In the banking sector, on-premises third-party banking software is renowned for its robust security features. Enterprises retain full control over their on-premises solutions, enabling them to regulate access and tailor the software to their unique business needs. However, the market trend indicates a decline in the adoption of on-premises third-party banking software due to the increasing preference for cloud-based alternatives. To maintain an on-premises solution, banks must invest in software licenses, hire IT personnel for management, and consistently upgrade the software while implementing data protection measures and procuring in-house hardware.

North America is forecasted to hold the largest market size by region in 2024

The third-party banking software market in North America is poised for significant growth during the forecast period, driven by the region's technological advancements and pioneering adoption of innovative technologies. Leading investment banks, including The Goldman Sachs Group Inc., JPMorgan Chase and Co., and Bank of America Corp., are investing heavily in technology to enhance their offerings and cater to the evolving needs of their customers. For instance, JPMorgan Chase and Co.'s investing app for traders targets the millennial demographic, showcasing the bank's commitment to leveraging technology to deliver superior customer service.

The Third-party Banking Software Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • AAZZUR Ltd.
  • American Express Co.
  • ATOM FINANCE INC.
  • Avaloq Group Ltd.
  • Backbase B.V.
  • Banco Bilbao Vizcaya Argentaria SA
  • Bank of America Corp.
  • Capgemini Service SAS
  • Capital Banking Solutions
  • Fidelity National Information Services Inc.
  • Finastra
  • Fiserv Inc.
  • HCL Technologies Ltd.
  • Infosys Ltd.
  • Intellect Design Arena Ltd.
  • InvestCloud Inc.
  • JPMorgan Chase and Co.
  • Mambu B.V.
  • MicroStrategy Inc.
  • Oracle Corp.
  • Q2 Holdings Inc.
  • Quinenco S.A.
  • SAP SE
  • SoFi Technologies Inc.
  • Sopra Steria Group SA
  • Tata Consultancy Services Ltd.
  • Temenos AG
  • The Goldman Sachs Group Inc.
  • Unisys Corp.
  • Virtusa Corp.
  • Wipro Ltd.
  • ZKAPITOL Technologies Ltd.
  • Nucleus Software Exports Ltd.
.

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Research Analysis Overview

The Third-party Banking Software Market is witnessing significant growth as retail and commercial banks seek to modernize their operations and enhance customer experience. Traditional methods of bookkeeping and financial transaction tracking are being replaced by computerized methods and advanced analytical tools like risk management software, wealth management software, business intelligence software, and omnichannel banking software. Core banking systems, powered by digital technology, are at the heart of this transformation. These systems offer advanced features like encryption, cloud computing, and information security to ensure economic growth and operational efficiency. Third-party banking software providers offer customized solutions to meet the unique needs of banks, enabling them to offer innovative services to their customers. Advanced analytical tools like big data analytics help banks gain insights into customer behavior and market trends, enabling them to offer personalized services. The use of computers, smartphones, networking, databases, and cloud-computing services has made banking more accessible and convenient than ever before. However, the adoption of third-party banking software also brings challenges like data security and regulatory compliance, which need to be addressed to ensure customer trust and confidence.

Market Research Overview

The Third-party Banking Software Market is witnessing significant growth due to the increasing demand for standardized processes, customer-centric core banking, and digital transformation in the BFSI industry. This market includes a range of software solutions such as computerized accounting, business intelligence, private wealth management, and omnichannel management. Cloud-computing applications are becoming increasingly popular in this market due to their ability to offer seamless digital experiences for tech-savvy customers. Omnichannel management, digital banking, online account management, and mobile banking apps are key areas of focus. The business intelligence segment of the market is expected to grow rapidly due to the need for advanced analytical tools to understand consumer behavior and economic trends. Collaborations between third-party software providers and retail and commercial banks are also on the rise, offering pricing advantages and improved customer support. However, the market faces challenges such as regulatory compliance mandates, security breaches, and risk management. Artificial intelligence (AI) and Big Data analytics are being adopted to address these challenges. The market is also witnessing geographic expansion, with IT infrastructure and regulatory compliances being key considerations. FutureSafe, Optimal Asset Management, and Cyberbank platform are some of the key players in the third-party banking software market. The market is expected to continue growing due to the increasing demand for operational efficiency and improved customer experience in the BFSI industry. In conclusion, the third-party banking software market is witnessing significant growth due to the increasing demand for digital banking, customer-centric core banking, and advanced analytical tools. However, the market faces challenges such as regulatory compliance mandates, security breaches, and risk management. The market is expected to continue growing due to the increasing adoption of digital technology, cloud computing, and IT infrastructure in the BFSI industry.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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