What is the Historic and Current Scenario of the Retail Core Banking Solution Market?
The retail core banking solution market has seen considerable growth due to a variety of factors.
•The market size for retail core banking solutions has seen substantial growth in the last few years. Predictions show that it will increase from $4.94 billion in 2024 to $5.45 billion by 2025, registering a compound annual growth rate (CAGR) of 10.4%.
The growth during the historical period is due to factors such as regulatory compliance requirements, customers' need for digital services, operational efficiency, cost reduction, improved data security and privacy, competitive forces, and market dynamics.
What are the Forecasted Growth and Key Factors of the Retail Core Banking Solution Market?
The retail core banking solution market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of the retail core banking solution is projected to witness significant expansion in the upcoming years, with an estimated value of $7.92 billion by 2029, growing at a Compound Annual Growth Rate (CAGR) of 9.8%.
This growth for the forecast period is anticipated to be driven by factors such as initiatives towards digital transformation, integration of business intelligence and analytics, transition towards cloud-based solutions, open banking and API integration, and enhanced focus on customer experience. The key trends during the forecast time include adherence to regulatory norms, real-time transactions, improvement in mobile banking, analytics for acquiring business insights, and cooperation within the ecosystem.
What Are The Leading Drivers Of Growth In The Retail Core Banking Solution Market?
The escalation in mobile and internet banking needs from customers is playing a significant role in expanding the retail core banking solutions market. Mobile banking provides clients the option to utilize financial services using mobile devices such as smartphones and tablets, allowing them to manage their bank accounts and carry out various financial actions. Internet banking, on the other hand, gives clients access to a plethora of banking services and the ability to perform financial transactions online. To ensure seamless operations across multiple channels, retail core banking solutions are utilized to integrate internet banking services with the bank's normal operation channels. These solutions aid in providing speedy mobile banking services. For instance, in October 2023, MoneyTransfers.com, a UK-based online platform, suggested that digital banking users are projected to increase from 208 million in 2023 to 212.8 million in 2024, indicating a consistent increase in the adoption of digital banking. As a result, the retail core banking solutions market will be propelled by the growing consumer demand for mobile and internet banking.
How Are The Segments Defined Within The Global Retail Core Banking Solution Market?
The retail core banking solution market covered in this report is segmented –
1) By Component: Solution, Services
2) By Deployment: Cloud, On-Premises
3) By Enterprise Size: Small And Medium Enterprises, Large Enterprises
4) By Application: Regulatory Compliance, Risk Management, Digital Banking, Data Storage, Other Applications
Subsegments:
1) By Solution: Core Banking Software, Digital Banking Platforms, Payment Processing Solutions, Customer Relationship Management (CRM) Systems
2) By Services: Consulting Services, Implementation Services, Maintenance And Support Services, Training And Education Services
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How Are New Trends Expected To Influence The Growth Of The Retail Core Banking Solution Market?
The primary trend gaining traction in the retail core banking solution market is technological innovation. Top companies in this market are emphasizing the integration of cutting-edge technologies such as digital transformation tools and cloud-native platforms. For example, Arvest Bank, a financial services firm based in the US, debuted a new lending service in February 2023 that harnesses Thought Machine's cloud-native core banking technology. This product employs the Vault Core banking platform, which effectively eliminates inefficiencies within the equipment finance market in the US, valued at over $1 trillion. Utilizing this software, Arvest is able to enhance its comprehensive banking experience and develop financial products rapidly.
Who Are the Key Players in the Retail Core Banking Solution Market?
Major companies operating in the retail core banking solution market include:
• Mambu GmbH
• Oracle Corporation
• SAP SE
• Tata Consultancy Services Limited
• Infosys Limited
• Fiserv Inc.
• Fidelity National Information Services Inc. (FIS)
• Wipro Core Banking As-a-Service
• Polaris Software
• Unisys Corporation
• Jack Henry & Associates Inc
• Finastra Group Holdings Limited
• Temenos AG
• EdgeVerve
• Sopra Banking Software
• InfrasoftTech
• Backbase B.V
• Silverlake Axis
• 3i Infotech
• Nucleus Software
• Neptune Software
• Profile Software
• ICS Financial Systems
• Kiya.ai
• HES Core
What Is The Most Dominant Region In The Retail Core Banking Solution Market?
North America was the largest region in the retail core banking solution market in 2024. The regions covered in the retail core banking solution market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
