Retail Core Banking Systems Market Size, Trends and Growth Analysis by 2027

The retail core banking systems market was valued at approximately US$ 5,652.32 million in 2019 and is anticipated to grow to US$ 11,410.83 million by 2027, reflecting a compound annual growth rate (CAGR) of 9.5% from 2020 to 2027.

Retail core banking systems are designed to enhance personal or consumer banking services, enabling banks to better serve their clientele through digital platforms. These systems facilitate secure money management for customers, allowing for safe transfers, deposits, and access to credit. Additionally, they provide a range of services including mortgage management, account information, personal loans, certificates of deposit, debit and credit card management, and other financial records. The market assesses various players in the retail core banking systems sector based on the diverse products they offer to banks for managing retail banking transactions.

The adoption of retail banking systems allows banks to access low-cost funding, establish a solid operational foundation, and enhance customer relationship management (CRM). This is expected to significantly boost the demand for retail core banking systems. Furthermore, the growing consumer preference for online and mobile banking is contributing to market expansion. The increasing competition from mobile payment solutions and fintech companies is also compelling banks to implement superior systems that provide seamless payment options for customers, further driving market growth.

Vendors in the retail core banking systems market are concentrating on launching innovative products to maintain their competitive advantage. For example, in October 2020, Temenos AG introduced the Temenos Transact Data Hub, a real-time SaaS (software-as-a-service) platform tailored for core banking. The global retail core banking systems market can be broadly categorized based on offerings and deployment methods. In terms of offerings, the market is divided into solutions and services, while deployment is classified into on-premise and cloud-based systems. Key players in this market include Avaloq, Fiserv, Inc., Infosys Ltd., Oracle Corporation, SAP SE, SopraSteria, Tata Consultancy Services Limited, Temenos Headquarters SA, Intellect Design Arena Ltd, and FIS.

North America stands out as a crucial region for the adoption and advancement of new technologies, driven by supportive government policies aimed at fostering innovation, a substantial industrial base, and high consumer purchasing power, particularly in developed nations like the United States and Canada. Consequently, any disruptions affecting industrial growth could hinder the economic progress of the region. As reported by the WHO, the US is currently the most severely impacted country by the COVID-19 pandemic, with over 14,397,135 confirmed cases and 278,806 deaths. Despite this, the pandemic has accelerated the adoption of retail core banking systems as consumers increasingly shift towards online and mobile banking solutions. The usage of mobile banking applications and online banking services has surged during the pandemic.

The overall size of the retail core banking systems market has been determined through a combination of primary and secondary research methods. The research process commenced with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data relevant to the market. This approach also aids in providing an overview and forecast for the retail core banking systems market across all segments and regions. Additionally, numerous primary interviews have been conducted with industry participants and experts to validate the data and gain deeper analytical insights. Participants in this process typically include industry professionals such as VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the retail core banking systems market.

In summary, the retail core banking systems market is poised for significant growth, driven by technological advancements, changing consumer preferences, and the competitive landscape of financial services. Major players are actively innovating to meet the evolving demands of the banking sector, ensuring that they remain at the forefront of this dynamic market.