The global core banking software market was valued at USD 12.37 billion in 2024 and is projected to expand significantly, reaching USD 21.61 billion by 2030, growing at a compound annual growth rate (CAGR) of 10.2% from 2025 to 2030. This substantial growth is being driven by the increasing willingness of banking industry participants to adopt advanced technologies and integrate innovation into their core operations. The evolution from traditional banking practices to digitized workflows across front-end and back-end systems marks a major transformation in the global financial services landscape.

A key trend fueling this market is the rapid digitization of financial services, which has reshaped how banks operate and engage with their customers. Traditional banking services are being replaced or complemented by automation, data-driven processes, and real-time digital banking platforms, all of which are supported by modern core banking software. As banking institutions continue to modernize legacy infrastructure, there is an increasing demand for solutions that can support multi-channel operations, agile customer onboarding, and seamless integration with third-party fintech ecosystems. The adoption of emerging technologies such as generative artificial intelligence (AI), machine learning, blockchain, and cloud-native platforms is significantly accelerating transformation in banking. These technologies enhance customer experiences, automate complex tasks, improve fraud detection, and offer deep insights into customer behavior.

A study conducted by Accenture in March 2023, which surveyed over 49,000 customers, revealed that 67% of respondents still rely on branch services for handling specific and complex banking issues that require in-person interaction. This finding highlights the importance of offering a hybrid model, combining digital solutions with physical branches to serve diverse customer preferences. Furthermore, the same study estimated that banks could increase their revenue by up to 20% by enhancing engagement with their primary customers, underscoring the financial benefits of effective core banking transformation.

Key Market Trends & Insights:

• North America held the largest revenue share of 26.6% in 2024, maintaining its dominant position in the global core banking software market. The region's leadership is attributed to the presence of several leading technology firms, mature banking infrastructure, and widespread adoption of digital solutions by financial institutions.
• The Asia Pacific region is projected to experience the fastest CAGR during the forecast period, driven by increasing financial inclusion, government-led digitization initiatives, and the rapid modernization of banking infrastructure in developing countries. Specifically, India's core banking software market is growing rapidly, supported by favorable policies such as Digital India, the Unified Payments Interface (UPI), and regulatory frameworks encouraging fintech collaboration.
• Based on components, the solutions segment led the global market in 2024, accounting for the largest revenue share of 63.56%. This segment includes essential software platforms that support core banking operations such as transaction processing, loan management, account servicing, and compliance. The services segment, including consulting, integration, and support services, is expected to grow at the fastest CAGR as banks increasingly rely on expert assistance for software deployment and system upgrades.
• By deployment model, the on-premise segment accounted for the largest share in 2024, especially among large banks seeking control over infrastructure and data security. However, the cloud deployment segment is anticipated to grow at the fastest CAGR from 2025 to 2030.
• Based on end use, the banks segment emerged as the largest contributor to market revenue in 2024, driven by the demand for centralized systems capable of streamlining operations across multiple branches. The financial institutions segment, which includes credit unions, insurance companies, and non-banking financial companies (NBFCs), is expected to grow at a significant CAGR over the forecast period.

Order a free sample PDF of the Core Banking Software Market Intelligence Study, published by Grand View Research.

Market Size & Forecast:

• 2024 Market Size: USD 12.37 Billion
• 2030 Projected Market Size: USD 21.61 Billion
• CAGR (2025-2030): 10.2%
• North America: Largest market in 2024

Key Companies & Market Share Insights:

The global core banking software industry is marked by intense competition, with several key players commanding substantial market shares. These companies are actively pursuing strategic partnerships, launching new product offerings, and enhancing their existing portfolios to meet the evolving needs of banks and financial institutions.

• Temenos, founded in 1993, is a prominent provider of advanced banking solutions with a strong global presence. It supports nearly 950 core banking and approximately 600 digital banking clients. As one of the largest software technology companies in Europe, Temenos delivers a comprehensive suite of solutions across retail banking, corporate banking, wealth management, payments, and funds management, helping institutions streamline operations and deliver digital-first customer experiences.
• Capgemini is a global IT services and consulting firm that serves as a technology partner for banking institutions undertaking digital transformation. Its solutions span cloud computing, cybersecurity, data and artificial intelligence, and enterprise management. Capgemini plays a critical role in helping banks integrate intelligent technologies and sustainable practices, making it a trusted advisor in core banking modernization efforts.
• Other key market participants include Finastra, Infosys Limited, and Fiserv, Inc., all of whom continue to invest in R&D, innovation, and global expansion strategies to strengthen their market positioning.

Explore Horizon Databook – The world's most expansive market intelligence platform developed by Grand View Research.

Conclusion:

The global core banking software market is expanding rapidly, driven by increasing digital transformation, rising demand for advanced financial technologies, and the adoption of AI and cloud-based solutions. With strong contributions from North America and fast-growing markets like Asia Pacific, the sector is poised for sustained growth. Leading companies such as Temenos and Capgemini are accelerating innovation to meet evolving banking needs and enhance customer engagement.