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". offers a comprehensive analysis of the industry, which comprises insights on the global third-party banking software market share. The global 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 Third-Party Banking Software Industry:

• Digital Transformation in Banking:

The rapid digital transformation in the banking sector is one of the primary drivers of the third-party banking software market. Traditional banking institutions are increasingly recognizing the need to adapt to changing consumer expectations and technological advancements. They are turning to third-party software providers to modernize their operations and offer innovative digital services. This transformation includes the adoption of mobile banking, online account management, and digital payment solutions. As a result, third-party software vendors are capitalizing on this demand by offering solutions that enable banks to streamline their processes, enhance consumer engagement, and remain competitive in the digital age.

• Regulatory Compliance and Risk Management:

Stringent regulatory requirements and the ever-evolving landscape of compliance have put immense pressure on financial institutions. To navigate this complex environment, banks are turning to third-party software solutions that specialize in regulatory compliance and risk management. These solutions help banks stay in compliance with constantly changing regulations such as anti-money laundering (AML) and know-your-customer (KYC) rules. Additionally, they provide advanced analytics and risk assessment tools, enabling banks to proactively identify and mitigate potential risks. The growing need for robust compliance and risk management solutions has fueled the expansion of the third-party banking software market.

• Cost Efficiency and Scalability:

Cost efficiency and scalability are critical considerations for banks aiming to optimize their operations. Third-party banking software offers a cost-effective alternative to developing in-house solutions. Banks can avoid the substantial expenses associated with developing, maintaining, and updating proprietary software by outsourcing these functions to specialized providers. Moreover, third-party solutions often offer scalability, allowing banks to adjust their software usage according to their needs, whether they are a small regional bank or a global financial institution. This flexibility allows banks to allocate resources more efficiently and focus on core banking activities while relying on third-party software for specialized functions.

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 Report Segmentation:   

By Product:

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

Core banking software dominates the market due to its indispensable role as the central nervous system of banking operations, managing core functions such as transactions, consumer data, and financial services, making it a fundamental and essential component for financial institutions.

By Deployment Type:

• On-premises
• Cloud-based

On-premises holds maximum number of shares due to the continued preference of many organizations, especially in sensitive industries such as finance and healthcare, for maintaining direct control over their infrastructure and data within their own physical facilities.

By Application:

• Risk Management
• Information Security
• Business Intelligence
• Others

Risk management represents the largest segment due to the increasing regulatory requirements and the growing need for financial institutions to proactively identify and mitigate potential risks in their operations.

By End User:

• Commercial Banks
• Retail and Trading Banks

Retail and trading banks dominate the market due to their extensive consumer base, which includes individual consumers and businesses, resulting in high demand for a wide range of banking services and software solutions.

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

Global Third-Party Banking Software Market Trends:

The rise of fintech firms and the growing trend of open banking have created opportunities for collaboration between traditional banks and fintech startups. To remain competitive and offer a wider range of services, banks often integrate third-party software solutions that enable them to partner with fintech companies seamlessly. This collaboration enhances the overall consumer experience and provides access to innovative financial products and services. Additionally, numerous banks and financial institutions are pursuing globalization and expansion strategies to tap into new markets and diversify their revenue streams. As they expand internationally, they often require adaptable and scalable software solutions to cater to diverse regulatory environments and consumer preferences. Third-party banking software providers offer the necessary expertise and localized solutions, making it easier for financial institutions to enter new regions while minimizing risks and costs.

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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