Software as a Service (Saas)-Based Core Banking Software Market Report 2025

The software as a service (SaaS)-based core banking software market size has grown exponentially in recent years. It will grow from $11.27 billion in 2024 to $13.92 billion in 2025 at a compound annual growth rate (CAGR) of 23.5%. The growth during the historic period can be attributed to the rising adoption of online banking, the increasing use of mobile channels, the heightened customer expectations, the intensifying market competition, and the growing cost pressures faced by financial institutions.

The software as a service (SaaS)-based core banking software market size is expected to see exponential growth in the next few years. It will grow to $31.98 billion in 2029 at a compound annual growth rate (CAGR) of 23.1%. The growth projected for the forecast period can be attributed to accelerating digital transformation, rising demand for cloud solutions, the growing need for operational efficiency, the increasing focus on customer experience, and heightened regulatory requirements. Key trends expected during this period include advancements in AI-powered automation, the integration of API-driven banking, the adoption of technology-enabled real-time processing, progress in microservices architecture, and the rise of technology-enabled composable banking.

The growing demand for cloud models is expected to drive the expansion of the software as a service (SaaS)-based core banking software market in the coming years. Cloud models represent service frameworks that deliver computing resources over the internet, including infrastructure (IaaS), platforms (PaaS), and software (SaaS), offering scalable and on-demand access. This rising demand is largely due to economic efficiency, as organizations increasingly prefer flexible spending models and pay-as-you-go options that minimize upfront costs and align expenses with actual usage. SaaS-based core banking software supports cloud adoption by providing scalable, secure, and cost-effective banking solutions that offer real-time data access, faster deployment, and improved regulatory compliance. For example, in January 2025, AAG IT Services, a UK-based managed IT service provider, reported that in 2022, 57% of small and medium-sized business (SMB) workloads and 56% of data were hosted in public clouds. These figures were expected to rise by another 6% each in 2023, bringing the totals to 63% of workloads and 62% of data. This demonstrates how increasing reliance on cloud models is fueling the SaaS-based core banking software market.

Leading companies in the SaaS-based core banking software market are focusing on next-generation innovations such as cloud-native core banking platforms to provide scalable, flexible, and secure solutions for financial institutions. A cloud-native core banking platform is designed specifically to operate within cloud environments, delivering agility, efficiency, and compliance while improving customer experiences. For instance, in October 2023, Sopra Banking Software, a France-based fintech company, launched the SBP Core Platform, a modular, real-time core banking solution powered by artificial intelligence. This SaaS platform enhances scalability, security, and efficiency while supporting compliance and innovation in financial services. With its modular design and AI integration, the SBP Core Platform supports a broad range of banking operations, including payments, lending, and deposits, offering financial institutions greater operational performance and customer-focused innovation.

In April 2022, Fiserv, Inc., a US-based financial technology company, acquired Finxact, Inc. for an undisclosed amount. The purpose of this acquisition was to accelerate Fiserv’s digital banking strategy, modernize its core banking infrastructure, and strengthen its portfolio with scalable, API-first SaaS core banking solutions. These solutions enable financial institutions to quickly deliver innovative and personalized digital banking experiences. Finxact, Inc., based in the United States, is a provider of a SaaS platform specifically developed for financial institutions.

Major players in the software as a service (SaaS)-based core banking software market are Oracle Corporation, Fiserv Inc., TEMENOS AG, Q2 Holdings Inc., nCino Inc., MeridianLink Inc., Alkami Technology Inc., Backbase, Mambu B.V., MX Technologies Inc., Thought Machine Group Limited, Finxact LLC, Alacriti Infosystems Private Limited, Hyland Software Inc., Antier Solutions Private Limited, Itexus LLC, Apiture Inc., Advapay OÜ, Dashdevs LLC, and Vine Financial Inc.

North America was the largest region in the software as a service (SaaS)-based core banking software market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in software as a service (SaaS)-based core banking software report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the software as a service (SaaS)-based core 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.

Software as a Service (SaaS)-based core banking software is a cloud-delivered, subscription-based digital platform that allows financial institutions to manage critical banking operations, such as customer accounts, transactions, and regulatory compliance, through centrally hosted infrastructure. It provides scalability, cost efficiency, and minimizes the need for on-premises technology investment. This solution is primarily used to streamline banking operations, foster innovation, and improve accessibility across multiple banking functions.

The key components of SaaS-based core banking software include software and services. Software comprises cloud-delivered applications and platforms that enable banks and financial institutions to handle core functions such as deposits, lending, payments, compliance, transactions, and customer interactions via subscription models. Deployment options include public cloud, private cloud, and hybrid cloud. These solutions are implemented across different types of banks such as large, midsize, small, community banks, and credit unions and are used in areas such as retail banking, treasury, corporate banking, and wealth management.

The software as a service (SaaS)-based core banking software market research report is one of a series of new reports that provides software as a service (SaaS)-based core banking software market statistics, including software as a service (SaaS)-based core banking software industry global market size, regional shares, competitors with a software as a service (SaaS)-based core banking software market share, detailed software as a service (SaaS)-based core banking software market segments, market trends and opportunities, and any further data you may need to thrive in the software as a service (SaaS)-based core banking software industry. This software as a service (SaaS)-based core 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 software as a service (SaaS)-based core banking software market consists of revenues earned by entities providing services such as data migration services, training and education services, customization services, cloud hosting, and infrastructure management 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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