Third-Party Banking Software Market Report 2025

The third-party banking software market size has grown strongly in recent years. It will grow from $28.3 billion in 2024 to $30.89 billion in 2025 at a compound annual growth rate (CAGR) of 9.1%. The growth during historic period is mainly due to the rising adoption of digital banking, the increasing demand for cost-efficient banking solutions, heightened focus on fraud detection, greater reliance on data analytics, and the emergence of cloud-based banking platforms.

The third-party banking software market size is expected to see strong growth in the next few years. It will grow to $43.25 billion in 2029 at a compound annual growth rate (CAGR) of 8.8%. The growth in the forecast period is driven by the rising demand for AI and machine learning applications in banking, the expanding use of open banking platforms, increased adoption of digital wallets, a growing need for real-time transaction processing, and broader implementation of cloud-native banking solutions. Key trends expected during the forecast period include innovations in cloud-based banking platforms, advancements in data analytics, improvements in biometric authentication, developments in frictionless payment processing systems, and the integration of automation within banking operations.

The increasing occurrence of cyberattacks is anticipated to drive the growth of the third-party banking software market moving forward. A cyberattack is a deliberate effort by an individual or group to breach another individual’s or organization’s information system to disrupt or gain unauthorized access to computer systems. This rise in cyberattacks is fueled by the growing digitalization of data and services, which expands the attack surface and creates more opportunities for cybercriminals to exploit vulnerabilities. Third-party banking software helps mitigate cyber threats by providing banks with access to advanced security technologies, continuous monitoring, and enhanced protection, ensuring swift responses to emerging threats. For example, a report from June 2025 by the UK’s Department for Science, Innovation and Technology noted a significant increase in ransomware incidents among businesses, with affected cases rising from less than 0.5% in 2024 to 1% in 2025. Thus, the rising prevalence of cyberattacks is boosting the demand for third-party banking software.

Leading companies in the third-party banking software market are emphasizing technological innovations such as artificial intelligence (AI)-powered automation to improve decision-making and elevate customer experiences, thereby transforming operational efficiency within financial institutions. AI-powered banking integrates AI and automation technologies into banking systems to enhance decision-making capabilities and enable smarter choices, offering personalized customer experiences with reduced manual intervention. For instance, in January 2025, Black Dragon Capital LLC, a US-based technology firm, launched Open Banking Solutions (OBS), a cloud-native digital banking platform designed to help community-based financial institutions accelerate digital transformation and improve customer experiences. OBS features API-driven integration for secure and standardized data sharing between banks and third-party providers. Customers maintain complete control over their financial data through robust consent management systems, promoting transparency and trust. Additionally, the platform provides real-time access to banking information, facilitating faster credit decisions and tailored financial services.

In January 2024, Visa Inc., a US-based payment card services company, acquired Pismo Technological Solutions Ltd. for an undisclosed sum. Through this acquisition, Visa aims to strengthen and expand its core banking and issuer processing capabilities, enabling it to better serve financial institutions and fintech clients with innovative, cloud-native banking and payment solutions across diverse product types, payment rails, geographies, and currencies. Pismo Technological Solutions Ltd., based in Brazil, develops a cloud-based payment processing platform that delivers third-party banking software via its cloud-native, API-driven platform built for core banking.

Major players in the third-party banking software market are International Business Machines Corporation (IBM), Oracle Corporation, SAP SE, Salesforce Inc., Tata Consultancy Services Limited (TCS), NEC Corporation, Infosys Limited, Fiserv Inc., DXC Technology Company, Fidelity National Information Services Inc. (FIS), Jack Henry & Associates Inc., Finastra Group Holdings Limited, Temenos AG, Misys International Banking Systems Limited, Sopra Banking Software SA, nCino Inc., Intellect Design Arena Limited, Silverlake Axis Ltd., Mambu B.V., and Profile Software S.A.

North America was the largest region in the third-party banking software market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in third-party banking software report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the third-party banking software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s recommendations and conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

Third-party banking software refers to software products created by external vendors (not developed by the banks themselves) that financial institutions utilize to handle various banking functions. These solutions may encompass core banking systems, customer relationship management (CRM) platforms, risk management tools, digital banking apps, fraud detection software, and more.

The primary categories of third-party banking software include core banking software, omnichannel banking software, business intelligence software, wealth management software, and additional types. Core banking software serves as a centralized system managing essential banking operations such as accounts, transactions, and loans in real time across branches and channels. These software solutions are available in both on-premise and cloud deployments and serve financial institutions of all sizes - small, medium, and large. They support multiple application areas such as risk management, information security, business intelligence, and training and consulting services. Various end-users, including retail banks, commercial banks, and investment banks, adopt these solutions.

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

The third-party banking software market consists of revenues earned by entities by providing services such as core banking services, payment processing, online banking, fraud detection and risk management, customer relationship management, and loan and credit management. The market value includes the value of related goods sold by the service provider or included within the service offering. The third-party banking software market also includes sales of core banking systems, tax optimization tools, risk management tools, and wealth management platforms. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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.

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