Digital Core Banking Solution Market Report 2025

The digital core banking solution market size has grown rapidly in recent years. It will grow from $12.18 billion in 2024 to $13.8 billion in 2025 at a compound annual growth rate (CAGR) of 13.3%. The growth during the historic period can be credited to the rising demand for real-time transaction processing, the growing need to replace legacy systems, increased internet and smartphone penetration, a stronger focus on cost reduction and operational efficiency, and heightened customer expectations for digital services.

The digital core banking solution market size is expected to see rapid growth in the next few years. It will grow to $22.47 billion in 2029 at a compound annual growth rate (CAGR) of 13%. In the forecast period, growth is expected to be driven by greater emphasis on financial inclusion, wider adoption of cloud-based banking infrastructure, increased demand for personalized banking experiences, a growing number of fintech partnerships with banks, and stronger regulatory support for digital transformation. Key trends anticipated during this period include advancements in cloud-native core banking platforms, development of API-driven modular architectures, innovations in AI-powered customer service tools, integration of real-time data analytics for improved decision-making, and expansion of open banking and fintech collaborations.

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 March 2022, SoFi Technologies Inc., a US-based personal finance and fintech company, acquired Technisys S.à.r.l. for an undisclosed sum. With this acquisition, SoFi aims to build a vertically integrated fintech platform by combining Technisys’ cloud-native core banking system with its existing Galileo infrastructure to improve efficiency, scalability, and personalized digital banking services. Technisys S.à.r.l. is a US-based digital banking technology firm that provides cloud-based core banking and digital channels software.

Major players 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, and SDK.FINANCE s.r.o.

North America was the largest region in the digital core banking solution market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in digital core banking solution report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the digital core banking solution 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.

A digital core banking solution is an all-encompassing software platform that allows banks and financial institutions to handle their essential operations - like account management, transactions, loans, and compliance - through a centralized digital system. It facilitates real-time processing, improves operational efficiency, and ensures smooth integration across multiple digital banking channels.

The key elements of a digital core banking solution include software and services. The software component is a centralized, integrated platform that enables banks to manage and execute core banking activities such as account management, transactions, loans, and deposits in real time across various channels. Deployment options include on-premises, cloud-based, and hybrid models. These solutions provide a broad array of services, including core banking, mobile banking, internet banking, payment processing, and wealth management. Important functionalities encompass account management, transaction processing, loan administration, risk management, and compliance management, serving diverse users such as banks, credit unions, and other financial institutions.

The digital core banking solution market research report is one of a series of new reports that provides digital core banking solution market statistics, including digital core banking solution industry global market size, regional shares, competitors with a digital core banking solution market share, detailed digital core banking solution market segments, market trends and opportunities, and any further data you may need to thrive in the digital core banking solution industry. This digital core banking solution 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 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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