Digital Core Banking Solution Market Report 2026

The digital core banking solution market size has grown rapidly in recent years. It will grow from $13.8 billion in 2025 to $15.62 billion in 2026 at a compound annual growth rate (CAGR) of 13.2%. The growth in the historic period can be attributed to legacy system modernization initiatives, rising digital banking adoption, increasing transaction volumes, growing need for centralized compliance management, expansion of multi-channel banking services.

The digital core banking solution market size is expected to see rapid growth in the next few years. It will grow to $25.34 billion in 2030 at a compound annual growth rate (CAGR) of 12.9%. The growth in the forecast period can be attributed to increasing investments in cloud-based banking infrastructure, rising demand for scalable digital banking platforms, expansion of fintech-bank partnerships, growing focus on cost-efficient core system upgrades, increasing adoption of ai-driven risk management. Major trends in the forecast period include increasing migration to cloud-native core banking platforms, rising adoption of real-time transaction processing, growing integration of open banking apis, expansion of modular core banking architectures, enhanced focus on regulatory compliance automation.

The rising popularity of mobile banking is expected to drive the growth of the digital core banking solution market in the coming years. Mobile banking involves using mobile devices such as smartphones or tablets to perform financial transactions and access banking services remotely through secure apps or websites. Its growing popularity stems from the convenience it offers, allowing users to access banking services anytime and anywhere. Digital core banking solutions support mobile banking by providing a centralized, real-time infrastructure that enables seamless, secure, and 24/7 access to banking services via mobile devices. For example, in 2023, UK Finance, a UK trade association for the banking and financial services sector, reported a 5% increase in total payments to 48.1 billion. Consumers accounted for 85% (41 billion) of these payments, while businesses made up 15% (7.1 billion). Contactless payments represented 38% of all transactions, with one-third of adults using mobile contactless payments monthly. Cash payments declined to 6 billion, only 12% of the total, while faster payments overtook direct debits as the third most used payment method, underscoring the shift toward faster, digital transactions. Consequently, the growing popularity of mobile banking is propelling the expansion of the digital core banking solution market.

Leading companies in the digital core banking solution market are focusing on developing advanced technologies such as artificial intelligence-powered banking platforms to improve automation, personalization, and operational efficiency. These AI-powered platforms employ artificial intelligence to automate processes, analyze data, and deliver personalized banking services in real time. For instance, in May 2024, Temenos Headquarters SA, a Switzerland-based software company, introduced responsible generative artificial intelligence solutions as part of its AI-powered banking platform, marking a significant advancement in core banking technology. These solutions promote responsible AI use by ensuring transparency, explainability, security, and safe deployment tailored specifically for the banking sector. They allow users to quickly generate insights and reports through natural language queries. Fully integrated with core banking and financial crime systems, these solutions can be deployed on-premises, in the cloud, or as SaaS. They help banks increase efficiency, boost profitability, and deliver hyper-personalized, compliant customer experiences.

In June 2024, Mastercard Incorporated, a US-based payments technology company, partnered with Thought Machine to offer advanced digital core banking and payments modernization solutions for financial institutions. Through this collaboration, the companies aim to integrate Mastercard’s payment infrastructure with Thought Machine’s cloud-native core banking engine to help banks accelerate digital transformation, streamline operations, and implement modern, scalable banking services. Thought Machine Group Limited is a UK-based company that provides digital core banking solutions.

Major companies operating in the digital core banking solution market are SAP SE, Tata Consultancy Services Limited., Fiserv Inc., Wipro Limited., Fidelity National Information Services Inc., Finastra International Limited., Temenos Headquarters SA, Avaloq Group AG, Backbase B.V., Computer Services Inc., Intellect Design Arena Limited., Ohpen B.V., Mambu GmbH, Asseco Solutions AG, Zenith Software Limited., Profile Systems And Software S.A., EdgeVerve Systems Limited., Velmie LLC, Advapay OU, SDK.FINANCE s.r.o.

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

The digital core banking solution market consists of revenues earned by entities by providing services such as cloud hosting and core banking migration services, customer onboarding and know your customer (KYC) services, digital wallet and mobile banking services, application programming interface (API) banking and open banking services, and compliance and regulatory reporting 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.

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