Retail Core Banking Solution Global Market Report 2024

The retail core banking solution market size has grown rapidly in recent years. It will grow from $4.49 billion in 2023 to $4.96 billion in 2024 at a compound annual growth rate (CAGR) of 10.4%. The increase observed in the historical period can be attributed to factors such as regulatory compliance requirements, the growing demand from customers for digital services, the pursuit of operational efficiency and cost reduction, a focus on enhanced data security and privacy, and the dynamics of competition within the market.

The retail core banking solution market size is expected to see strong growth in the next few years. It will grow to $7.14 billion in 2028 at a compound annual growth rate (CAGR) of 9.6%. The anticipated growth in the forecast period can be attributed to various factors, including digital transformation initiatives, the integration of analytics and business intelligence, a shift towards cloud-based solutions, the adoption of open banking and API integration, and a heightened focus on enhancing customer experience. Notable trends expected during the forecast period include continued emphasis on regulatory compliance, the implementation of real-time payments, enhancements in mobile banking services, the utilization of analytics for valuable business insights, and increased collaboration within ecosystems.

The retail core banking solutions market is poised for growth due to the increasing customer demand for mobile and net banking services. Mobile banking allows clients to access and manage their banking accounts using mobile devices, while net banking enables online access to various banking services. The retail core banking solution integrates net banking services with the bank's regular operating channels, ensuring seamless operations across different channels. The demand for faster mobile banking services is evident in the projection that the global number of online banking users, including mobile and internet banking, will reach 3.6 billion by 2024. In addition, digital transactions in India increased from 5,554 crore in the 2020–2021 period to 8,840 crores in the 2021–2022 period, according to data from the National Payments Corporation of India (NCPI).

The growth of digitalization in the banking sector is a significant driver for the retail core banking solutions market. Digital transformation in the banking, financial services, and insurance (BFSI) sector involves integrating digital technologies to enhance customer experiences and streamline operations. Retail core banking solutions support multi-channel banking, allowing customers to access services through online banking, mobile apps, ATMs, and other channels. Mid-size banks and credit unions increased their digital transformation investments in fiscal year 2022, with investments reaching nearly $425,000 per $1 billion in assets. The adoption of peer-to-peer (P2P) payments among digital banking users also increased from 12% to 25% in 2022.

The prevailing trend driving the retail core banking solution market is technological advancement. Key players in this market are actively engaged in incorporating cutting-edge technologies such as cloud-native platforms and digital transformation tools. A case in point is Arvest Bank, a financial services company based in the United States, which, in February 2023, introduced a new lending service leveraging Thought Machine's cloud-native core banking technology, specifically the Vault Core banking platform. This initiative aims to eliminate inefficiencies within the extensive $1 trillion equipment finance market, allowing Arvest to swiftly enhance its overall banking experience and introduce innovative financial products.

Leading companies in the retail core banking solution market are also directing their efforts toward the development of platforms, particularly artificial intelligence (AI)-enabled retail core banking platforms, to enhance the quality of their financial services offerings. An AI-enabled core banking system involves integrating advanced artificial intelligence technologies into the banking infrastructure to optimize various banking operations. An illustration of this trend is evident in the October 2023 launch of the SBP Core Platform by Sopra Banking Software (SBS), a France-based provider of API-first platforms for financial institutions. This AI-enabled core banking system is offered as a Software-as-a-Service (SaaS) solution, allowing customers to access the latest innovations seamlessly without undertaking time-consuming migration projects. Moreover, it emphasizes the highest level of security, cost-effectiveness, and provides seamless product updates.

In August 2021, Objectway, an Italy-based fintech company, executed the acquisition of Die Software Peter Fitzon GmbH for an undisclosed amount. This strategic move expanded Objectway's portfolio to encompass wealth and asset management offerings integrated with core banking platforms. This development resulted in the creation of a modular, open, end-to-end banking suite designed to support the digital transformation of private banks, retail banks, and other financial institutions. Die Software Peter Fitzon GmbH, based in Germany, is recognized for its expertise in providing core banking solutions.

Major companies operating in the retail core banking solution market report are Wells Fargo, Mambu GmbH, Oracle Corporation, SAP SE, Tata Consultancy Services Limited, Banco Bilbao Vizcaya Argentaria, 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.

North America was the largest region in the retail core banking solution market in 2023. 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. The countries covered in the retail core banking solution market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The main components of retail core banking solutions are solutions and services. The solution aspect pertains to a back-end system responsible for processing banking transactions across a bank's numerous branches. Retail core banking solutions facilitate the seamless connection of various branches, allowing retail banks to offer services to customers without constraints based on branch location. These solutions are applicable to enterprises, including small and medium enterprises as well as large enterprises, for various purposes such as regulatory compliance, risk management, digital banking, data storage, and more.

The retail core banking solutions market research report is one of a series of new reports that provides retail core banking solutions market statistics, including the retail core banking solutions industry global market size, regional shares, competitors with a retail core banking solutions market share, detailed retail core banking solutions market segments, market trends, and opportunities, and any further data you may need to thrive in the retail core banking solutions industry. This retail core banking solutions market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The retail core banking solution market includes revenues earned by entities by providing account opening services, loan processing, withdrawals, and fund transfer services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.