Press release
Third-Party Banking Software Market on Rise: Key Growth Drivers and Future Outlook (2025-2033)
Study Assumption Years
Base Year: 2024
Historical Year/Period: 2019-2024
Forecast Year/Period: 2025-2033
Third-Party Banking Software Market Key Takeaways
Current Market Size: USD 30.93 Billion in 2024
CAGR: 6.80% during 2025-2033
Forecast Period: 2025-2033
North America held the largest market share of 36.6% in 2024, driven by advanced technological infrastructure and high digital banking adoption.
Core banking software led the product segment with a 37.3% market share in 2024 due to demand for integrated and efficient banking solutions.
On-premises deployment dominated at 82.4% market share in 2024, favored for enhanced security and regulatory compliance.
Risk management application accounted for 41.6% market share in 2024, reflecting financial institutions' focus on mitigating complex risks.
Retail and trading banks were the leading end users with a 62.3% market share in 2024, driven by demand for specialized service delivery and operational efficiency.
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Market Growth Factors
The third-party banking software market is witnessing robust growth due to the increasing use of cloud technology in the banking industry. Cloud solutions enable banks and financial institutions to reduce operational expenditures and enhance scalability. These platforms provide advanced technological features without hefty upfront infrastructure investments, improving agility, data security, and lowering maintenance costs. The seamless integration capability of cloud solutions with existing systems encourages customized offerings, expanding overall market demand.
Regulatory developments are another critical growth driver, particularly in regions like the United States where agencies such as the Consumer Financial Protection Bureau (CFPB) enforce data-sharing regulations. These regulations promote open banking by compelling banks to provide consumers with easier access to financial information. Consequently, financial institutions are adopting third-party software solutions that facilitate compliance and integrate smoothly with third-party platforms, enhancing competitiveness and service innovation.
The BFSI (Banking, Financial Services, and Insurance) sector's digital transformation significantly contributes to market expansion. Increasing digital transactions, as evidenced by 602 banks using UPI with 15.08 Billion digital transactions in 2024 in India, reflect rising digital platform adoption. Furthermore, the integration of big data analytics and automated accounting systems within banking software empowers institutions to make data-driven decisions, address cybercrime risks projected to cost USD 10.5 Trillion by 2025, and meet growing customer-centric banking demands, all fueling market growth.
Market Segmentation
Product:
Core Banking Software: Leads market with 37.3% share due to integrated, efficient banking demand and regulatory compliance needs.
Multi-Channel Banking Software
Business Intelligence Software
Others
Deployment Type:
On-premises: Dominates with 82.4% share as banks prioritize security, control over data, and regulatory compliance.
Cloud-based
Application:
Risk Management: Leads with 41.6% market share, driven by the need to mitigate credit, market, operational, and cyber risks.
Information Security
Business Intelligence
Others
End User:
Commercial Banks
Retail and Trading Banks: Lead with a 62.3% market share, fueled by demand for specialized, efficient service delivery and advanced digital solutions.
Region:
Asia Pacific
Europe
North America
Latin America
Middle East and Africa
Regional Insights
North America dominates the third-party banking software market with a 36.6% market share in 2024. This leadership is due to the region's sophisticated technological infrastructure, regulatory environment, and high adoption of digital banking platforms. Financial institutions in North America are increasingly investing in cloud-based, AI-driven solutions to enhance operational efficiency, security, and customer experience, positioning the region as a key innovation hub in the global market.
Recent Developments & News
April 2025: Backbase launched an AI-powered banking platform integrating real-time data insights and modular Agentic AI to automate tasks, unifying digital sales and customer service while emphasizing responsible AI deployment.
April 2025: Candescent expanded its Bangalore office with over 200 employees, focusing on next-generation user experience, customization, and fintech integration.
February 2025: Galoy introduced Lana, a platform enabling banks to offer bitcoin-backed loans using open-source software, customizable loan terms, and risk management to support crypto lending.
Key Players
Capgemini
Deltek
IBM
Infosys
Microsoft Corporation
NetSuite Inc.
Oracle Corporation
SAP SE
Tata Consultancy Services
Customization Note
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If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.
Contact Us
IMARC Group
134 N 4th St. Brooklyn, NY 11249, USA
Email: sales@imarcgroup.com
Tel No: (D) +91 120 433 0800
United States: +1-201971-6302
IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provides a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.
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