IMARC Group's report titled "Third-party Banking Software Market Report by Product (Core Banking Software, Multi-Channel Banking Software, Business Intelligence Software, and Others), Deployment Type (On-premises, Cloud-based), Application (Risk Management, Information Security, Business Intelligence, and Others), End-User (Commercial Banks, Retail and Trading Banks), and Region 2024-2032". The global third-party banking software market size reached US$ 28.9 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 54.8 Billion by 2032, exhibiting a growth rate (CAGR) of 7.2% during 2024-2032.

Factors Affecting the Growth of the Third-party Banking Software Industry:

• Rising Technological Advancements:

The third-party banking software industry is currently experiencing significant growth primarily due to rapid technological advancements. Innovations in areas such as artificial intelligence (AI), blockchain, and cloud computing are revolutionizing the way banking software is developed and used. These technologies enable more secure, efficient, and customer-friendly banking operations. For instance, AI-driven analytics are being utilized for personalized customer experiences and risk management. Blockchain technology enhances security and transparency in banking transactions, while cloud computing offers scalability and cost-effectiveness in software deployment. As these technologies continue to evolve, they are expected to further drive the growth of this industry by enabling more sophisticated and tailored banking solutions.

• Increasing Demand for Digital Banking Services:

With the ongoing digital transformation of the banking sector, there is a growing demand for third-party banking software. This shift is largely propelled by changing customer expectations, who now prefer convenient, fast, and accessible banking services. Digital banking platforms, mobile banking apps, and online transaction processing systems developed by third-party vendors are essential in meeting these customer demands. These software solutions offer features like real-time transactions, 24/7 banking services, and enhanced user interfaces, making banking more accessible and user-friendly. The recent outbreak of the coronavirus (COVID-19) pandemic has further accelerated this trend, as more customers have moved towards online banking, thereby fueling the demand for efficient and reliable third-party banking software.

• Growing Regulatory Compliance and Cybersecurity Needs:

The banking industry is one of the most heavily regulated sectors, with stringent requirements for compliance, data protection, and cybersecurity. As regulations continue to evolve, banks are increasingly relying on third-party software providers to ensure compliance with these regulatory standards. Third-party banking software often includes features designed to meet specific regulatory requirements, such as anti-money laundering (AML) checks, Know Your Customer (KYC) protocols, and data security measures. Furthermore, with the rising threat of cyberattacks in the financial sector, banks are investing heavily in third-party software that offers robust security features to protect sensitive financial data and maintain customer trust. This heightened need for regulatory compliance and enhanced cybersecurity is a key factor supporting the growth of the third-party banking software market.

Leading Companies Operating in the Global Third-party Banking Software Industry:

• Accenture, Capgemini
• Deltek
• IBM
• Infosys
• Microsoft Corporation
• NetSuite Inc.
• Oracle Corporation
• SAP SE
• Tata Consultancy Services

For an in-depth analysis, you can refer sample copy of the report: https://www.imarcgroup.com/third-party-banking-software-market/requestsample

Third-party Banking Software Market Report Segmentation:

By Product:

• Core Banking Software
• Multi-Channel Banking Software
• Business Intelligence Software
• Others

Core banking software dominates the market by product due to its essential role in managing primary banking functions like processing deposits, loans, and customer account management, which are critical for every banking institution.

By Deployment Type:

• On-premises
• Cloud-based

On-premises holds the largest market share as many banks prioritize data security and control, preferring to maintain their core banking systems in-house rather than on cloud platforms.

By Application:

• Risk Management
• Information Security
• Business Intelligence
• Others

Risk management represents the leading market segment owing to the banking sector's increasing focus on mitigating financial risks, complying with regulatory requirements, and safeguarding against fraud and cyber threats.

By End-User:

• Commercial Banks
• Retail and Trading Banks

Retail and trading banks account for the majority of the market share as these institutions extensively rely on third-party banking software for customer management, transaction processing, and other banking operations to enhance efficiency and customer service.

Market Breakup by Region:

• North America (United States, Canada)
• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa

Ask Analyst for Sample Report: https://www.imarcgroup.com/request?type=report&id=2121&flag=C

Global Third-party Banking Software Market Trends:

The third-party banking software market is currently witnessing several key trends, including a significant shift toward cloud-based solutions, offering scalability and cost efficiency. Artificial intelligence (AI) and machine learning (ML) are increasingly integrated to personalize customer experiences and improve decision-making, thus fostering market growth. Moreover, the demand for mobile banking solutions is rising, reflecting the growing preference for on-the-go financial services. Additionally, there is a heightened focus on cybersecurity, driven by the escalating need to protect sensitive financial data. In line with this, the increasing collaborations between traditional banks and fintech firms, blending conventional banking expertise with innovative technological solutions, are supporting market growth.

Note: If you need specific information that is not currently within the scope of the report, we will provide it to you as a part of the customization.

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IMARC Group is a leading market research company that offers management strategy and market research worldwide. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses.

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