The global third-party banking software market is estimated to grow by $10.56 billion from 2025-2029, according to market researcher Technavio.
"The market is estimated to grow at a compound annual growth rate (CAGR) of 6.6 percent during the forecast period. Growing use of digital payment solutions is driving market growth, with a trend towards incorporation of analytics into third-party banking software. However, issues related to data privacy and security poses a challenge," Technavio said.
According to Technavio, the banking industry is witnessing a shift in customer behavior, with an increasing preference for mobile devices and digital technologies to access banking services. This trend has resulted in a significant expansion of customer data for enterprises. To effectively utilize this data, third-party banking software with analytics is gaining popularity.
"These solutions offer benefits such as improved decision-making, risk reduction, enhanced customer insights, and performance optimization. Integration with CRM and other systems streamlines operations and enables smarter choices," Technavio said.
"Companies like Temenos AG provide analytics solutions with their retail banking software, featuring KPIs, pre-built models, applications, dashboards, reports, predictive analytics, and real-time data. This trend is expected to boost the demand for third-party banking software in the forecast period," it added.
The third-party banking software market is experiencing significant growth due to increasing demand for digital solutions. Cloud-based banking systems are trending, offering flexibility and accessibility. Components such as core banking, computes, and infotronic systems are essential for these solutions.
Advanced features like real-time processing, security, and integration with other financial systems are key considerations. Banking institutions are adopting these solutions to streamline operations and enhance customer experience. The market is competitive with players offering customizable and cost-effective solutions. The future of banking is digital, and third-party software providers are at the forefront of this transformation.
Key market players include American Express Co., Bank of America Corp., Capgemini Services SAS, Capital Banking Solutions, Fidelity National Information Services Inc., Finastra, Fiserv Inc., HCL Technologies Ltd., Infosys Ltd., Intellect Design Arena Ltd., JPMorgan Chase and Co., Mambu BV, Nucleus Software Exports Ltd., Oracle Corp, Q2 Holdings Inc., SAP SE, Sopra Steria Group SA, Tata Consultancy Services Ltd., Temenos AG, The Goldman Sachs Group Inc., Wipro Ltd., and ZKAPITOL Technologies Ltd.,Microsoft Corporation; International Business Machines (IBM) Corporation; Oracle Corporation, Accenture plc; FIS. Inc.
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