Software as a Service (Saas)-Based Core Banking Software Market Report 2026

The software as a service (saas)-based core banking software market size has grown exponentially in recent years. It will grow from $13.92 billion in 2025 to $17.16 billion in 2026 at a compound annual growth rate (CAGR) of 23.3%. The growth in the historic period can be attributed to increasing digitization of banking operations, rising demand for cost-efficient banking infrastructure, expansion of online and mobile banking services, growing regulatory modernization, early adoption of centralized banking platforms.

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 $39.3 billion in 2030 at a compound annual growth rate (CAGR) of 23%. The growth in the forecast period can be attributed to increasing adoption of open banking frameworks, rising investments in cloud infrastructure, expansion of digital-only banks, growing focus on real-time banking services, increasing demand for agile compliance management. Major trends in the forecast period include increasing migration to cloud-native core banking platforms, rising adoption of api-driven banking architectures, growing demand for scalable saas banking solutions, expansion of modular core banking systems, enhanced focus on rapid product innovation.

The rising demand for cloud models is expected to propel the growth of the software as a service (SaaS)-based core banking software market going forward. Cloud models refer to the different service frameworks delivering computing resources over the internet, including infrastructure (IaaS), platforms (PaaS), and software (SaaS), enabling scalable, on-demand access. The rising demand for cloud models is due to economic efficiency, as organizations increasingly prefer flexible spending and pay-as-you-go options that reduce upfront costs and align expenses with actual usage. Software as a service (SaaS)-based core banking software helps with cloud models by delivering scalable, secure, and cost-efficient banking solutions that enable real-time data access, faster deployment, and enhanced regulatory compliance. For instance, in January 2025, according to AAG IT Services, a UK-based managed IT service provider, more than half of small and medium-sized business (SMB) workloads (57%) and data (56%) were hosted in public clouds in 2022, with an additional 6% of each expected to migrate within the following year, bringing the totals to 63% of workloads and 62% of data by 2023. Therefore, the rising demand for cloud models is driving the growth of the software as a service (SaaS)-based core banking software market.

Major companies operating in the software as a service (SaaS)-based core banking software market are focusing on developing advancements in technology, such as cloud-native core banking platforms, to provide financial institutions with scalable, flexible, and secure banking solutions that accelerate innovation, improve customer experience, and support compliance with evolving regulatory demands. A cloud-native core banking platform is a modern banking software system designed and built specifically to operate fully within cloud environments. For instance, in October 2023, Sopra Banking Software, a France-based financial technology company, introduced the SBP Core Platform, a next-generation, modular, real-time core banking solution powered by artificial intelligence. This SaaS-based core banking software offers scalability and security while improving efficiency, compliance, and customer experience. Designed for versatility, the SBP Core Platform supports a wide range of banking services, such as deposits, lending, and payments, through its modular architecture and advanced AI integration, delivering enhanced operational performance and customer-focused innovation.

In March 2025, Finovifi Inc. a US‑based financial technology and fintech solutions provider, acquired Modern Banking Systems for an undisclosed amount. With this acquisition, Finovifi aimed to broaden its SaaS‑based core banking offerings by integrating Modern Banking Systems’ real‑time core processing software to provide AI‑enhanced, cloud‑ready banking technology and stronger backend capabilities for community banks and credit unions. Modern Banking Systems Inc. is a US‑based technology company that specializes in providing real‑time core banking software solutions used by community banks and financial institutions to manage deposits, loans, and payments.

Major companies operating 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, Vine Financial Inc.

North America was the largest region in the software as a service (SaaS)-based core banking software market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the software as a service (saas)-based core 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 software as a service (saas)-based core banking software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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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