Cloud-based Core Banking Market

• In April 2022, Financial technology pioneer FIS announced that the FIS Modern Banking Platform is now accessible on the Microsoft Azure cloud platform, enabling financial institutions in new regions including the UK, Thailand, and New Zealand to offer digital online banking

• In February 2022, Leader in financial technology FIS announced that the purchase of Atlanta-based Payrix has strengthened its embedded payments strategy. This purchase is in line with FIS's objective to broaden the use of its e-commerce solutions by businesses of all sizes and across all sectors by integrating payment processing into Software-as-a-Service (SaaS) platforms

The global cloud-based core banking market has witnessed significant growth in recent years, driven by various factors such as increasing adoption of digital banking solutions, rising demand for cost-effective banking services, and the need for scalability and flexibility in banking operations. Cloud-based core banking systems offer financial institutions the agility to adapt to changing market dynamics quickly. Additionally, they provide enhanced security features and regulatory compliance, which are crucial for the banking sector.

One notable segment within the cloud-based core banking market is the software-as-a-service (SaaS) model. SaaS-based core banking solutions have gained traction due to their subscription-based pricing model, which offers cost advantages over traditional on-premises systems. Moreover, SaaS solutions enable banks to rapidly deploy new features and updates, ensuring that they stay competitive in the ever-evolving financial landscape. This segment is expected to witness robust growth as more banks embrace cloud technologies to streamline their operations and improve customer experience.

Another significant segment is the deployment type, which includes public, private, and hybrid clouds. Public cloud deployment offers scalability and cost-effectiveness, making it an attractive option for banks looking to minimize infrastructure costs. Private cloud deployment, on the other hand, provides enhanced security and control, making it suitable for institutions with stringent regulatory requirements. Hybrid cloud deployment combines the benefits of both public and private clouds, allowing banks to leverage the scalability of the public cloud while maintaining control over sensitive data. As banks continue to evaluate their cloud strategies, the choice of deployment type will play a crucial role in shaping the market landscape.

The regional analysis reveals varying adoption rates of cloud-based core banking solutions across different geographies. Developed regions such as North America and Europe have witnessed early adoption due to the presence of mature banking infrastructure and favorable regulatory environments. In contrast, emerging economies in Asia-Pacific and Latin America are increasingly recognizing the benefits of cloud technology in modernizing their banking systems and catering to a growing customer base. As regulatory barriers continue to diminish and technological advancements proliferate, these regions are expected to exhibit substantial growth opportunities for cloud-based core banking solution providers.

Global Cloud-Based Core Banking Segment Analysis

In this report, the Global Cloud-Based Core Banking Market has been segmented by Component, Deployment, End User and Geography.

Global Cloud-Based Core Banking Market, Segmentation by Component

The Global Cloud-Based Core Banking Market has been segmented by Component into Software and Service.

The global cloud-based core banking market can be segmented by component into three main categories. There are the software solutions that form the backbone of the core banking system. These software solutions encompass a wide range of functionalities, including transaction processing, customer relationship management, loan origination, and more. They are designed to streamline banking operations, improve efficiency, and enhance customer experience.

There are the infrastructure components required to support the cloud-based core banking system. This includes servers, storage devices, networking equipment, and other hardware necessary for hosting and running the core banking software in the cloud. These infrastructure components are essential for ensuring the scalability, reliability, and security of the core banking system.

There are the services that complement the core banking software and infrastructure. These services may include implementation and integration services, consulting and advisory services, training and support services, and managed services. These services play a crucial role in helping banks and financial institutions deploy, customize, and optimize their cloud-based core banking systems to meet their specific business requirements and objectives.

Global Cloud-Based Core Banking Market, Segmentation by Deployment

The Global Cloud-Based Core Banking Market has been segmented by Deployment into Public cloud, Private cloud and Hybrid cloud.

The global cloud-based core banking market exhibits a dynamic landscape shaped by various deployment models catering to diverse organizational needs. One prominent segmentation criterion is based on deployment methods, which can be broadly categorized into public, private, and hybrid clouds.

Public cloud deployment entails utilizing shared infrastructure and services provided by third-party vendors over the internet. This model offers scalability and cost-efficiency, making it appealing for banks seeking rapid deployment and resource optimization. Moreover, public cloud solutions often provide flexibility in terms of payment models, allowing banks to pay for usage on a subscription or consumption basis.

Private cloud deployment involves dedicated infrastructure either on-premises or hosted by a third-party provider, exclusively serving the needs of a single organization. This approach offers greater control, security, and customization options, making it suitable for banks with stringent regulatory requirements or specific compliance mandates. Although private clouds may entail higher initial investments compared to public alternatives, they provide enhanced data governance and privacy assurances.

Hybrid cloud deployment represents a blend of public and private cloud environments, allowing banks to leverage the benefits of both models. This approach enables banks to balance considerations such as data sensitivity, performance requirements, and cost optimization. By seamlessly integrating on-premises infrastructure with external cloud services, banks can achieve greater agility and resilience while accommodating fluctuating workloads and regulatory demands.

The segmentation of the global cloud-based core banking market by deployment reflects the diverse strategies adopted by financial institutions to modernize their operations, enhance agility, and deliver superior customer experiences. Whether opting for public, private, or hybrid cloud solutions, banks must carefully assess their unique requirements and risk profiles to derive maximum value from their chosen deployment model.

Global Cloud-Based Core Banking Market, Segmentation by End User

The Global Cloud-Based Core Banking Market has been segmented by End User into Banks, Financial Institutes and Others.

The global cloud-based core banking market exhibits a diverse range of end users, each with distinct requirements and objectives. Financial institutions, comprising banks, credit unions, and other entities, represent a significant portion of the end user base. These institutions leverage cloud-based core banking solutions to streamline their operations, enhance customer experience, and adapt to the evolving regulatory landscape. By migrating to cloud platforms, financial institutions can achieve cost efficiencies, scalability, and improved agility in deploying new services and products.

The cloud-based core banking market is represented by fintech companies and startups. These entities often lack the legacy systems burdening traditional financial institutions, allowing them to adopt innovative cloud-based solutions more readily. Fintech firms leverage cloud-based core banking platforms to launch digital-first banking services, targeting niche markets, offering personalized experiences, and rapidly iterating their offerings based on customer feedback. The scalability and flexibility offered by cloud infrastructure align closely with the dynamic needs of fintech startups seeking rapid growth and market penetration.

Government and regulatory bodies are increasingly recognizing the potential benefits of cloud-based core banking solutions. These entities play a crucial role in shaping the regulatory environment within which financial institutions operate. By embracing cloud technology, governments aim to foster innovation, improve financial inclusion, and enhance the overall stability and transparency of the banking sector. Cloud-based core banking solutions enable regulatory bodies to monitor and enforce compliance more effectively, while also facilitating data sharing and collaboration among stakeholders. As such, governments and regulatory bodies constitute a notable and evolving segment within the global cloud-based core banking market, driving demand for specialized solutions tailored to their unique requirements.

Global Cloud-Based Core Banking Market, Segmentation by Geography

In this report, the Global Cloud-Based Core Banking Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Global Cloud-Based Core Banking Market Share (%), by Geographical Region, 2024

In North America, the cloud-based core banking market continues to surge, driven by the region's robust technological infrastructure and the adoption of digital banking solutions. With key players investing significantly in cloud-based services, financial institutions are increasingly transitioning towards flexible and scalable core banking systems. The demand for real-time transaction processing, enhanced security features, and seamless integration with third-party applications are propelling the growth of this market across the region. Moreover, regulatory initiatives aimed at promoting cloud adoption in the banking sector further bolster the market growth in North America.

In Europe, the cloud-based core banking market is witnessing steady growth fueled by the region's dynamic banking landscape and stringent regulatory frameworks. Banks are embracing cloud technologies to streamline operations, reduce costs, and improve customer experiences. The shift towards cloud-based core banking solutions is driven by the need for agility, innovation, and resilience in the face of evolving market dynamics. Additionally, the proliferation of digital banking channels and the emergence of fintech disruptors are compelling traditional banks to modernize their infrastructure, thereby driving the adoption of cloud-based core banking platforms across Europe.

Across the Asia-Pacific region, the cloud-based core banking market is experiencing rapid expansion, propelled by the growing demand for digital financial services and the proliferation of mobile devices. With a large population of unbanked and underbanked individuals, emerging economies in Asia-Pacific present significant opportunities for cloud-based core banking providers to address the evolving needs of financial institutions. Moreover, favorable government initiatives aimed at promoting digitalization and financial inclusion are accelerating the adoption of cloud-based core banking solutions in the region. As banks seek to enhance operational efficiency, scale infrastructure, and deliver innovative services, the adoption of cloud-based core banking platforms is expected to witness exponential growth across Asia-Pacific.

This report provides an in depth analysis of various factors that impact the dynamics of Global Cloud-Based Core Banking Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Key players in Global Cloud-Based Core Banking Market include:

• SAP SE
• Oracle Corporation
• Infosys Limited
• FIS

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis