Third-Party Banking Software Market Report 2026

The third-party banking software market size has grown strongly in recent years. It will grow from $30.89 billion in 2025 to $33.66 billion in 2026 at a compound annual growth rate (CAGR) of 9%. The growth in the historic period can be attributed to increasing digital transformation initiatives in banks, growing demand for scalable banking software, rising regulatory compliance requirements, expansion of online and mobile banking usage, increased outsourcing of banking technology development.

The third-party banking software market size is expected to see strong growth in the next few years. It will grow to $46.95 billion in 2030 at a compound annual growth rate (CAGR) of 8.7%. The growth in the forecast period can be attributed to increasing adoption of ai-powered banking solutions, rising investment in cybersecurity platforms, expansion of open banking ecosystems, growing demand for real-time data analytics, increased migration to cloud-based banking infrastructure. Major trends in the forecast period include increasing adoption of cloud-native core banking systems, rising integration of advanced fraud detection tools, growing use of omnichannel banking platforms, expansion of data-driven risk management solutions, enhanced focus on modular banking architectures.

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 companies operating 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., Profile Software S.A.

North America was the largest region in the third-party banking software market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the third-party banking software market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the third-party banking software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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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