Reconciliation benefit businesses by helping them to avoid balance sheet errors, which may have led to detrimental ramifications. In addition, reconciliation may help to find any discrepancy or fraud and can help instill financial integrity. Cloud services are highly scalable. Banks can request for more seats or storage and attain it rapidly. Thus, the emergence of cloud-based reconciliation software is expected to affect the market growth positively. With the growing digitization in the banking sector and an increasing number of daily transactions due to mobile and internet banking, automation in reconciliation software is projected to witness massive growth in the coming years.
Global reconciliation software in banking market has been segmented majorly on the basis of deployment type and functionality.
Based on deployment type, market is segmented into on-premise and on cloud. On-premise deployment provides a higher level of consumer data security and holds a major share of the market; whereas, the cloud-based deployment is expected to witness a rapid growth owing to its lower upfront cost and ease of scalability.
While depending upon the functionality, market is segregated into matching engine, exception management, reporting and analytics, financial control, automation, and other. Exceptions management is an important part of the reconciliation process. It is meant to organize the outstanding transactions (exceptions) based on their origin. It allows issues to be recognized and resolved quickly in a transparent and easy-to-use manner.
Geographically, the global Reconciliation Software in Banking market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa (LAMEA).
In North America, growth in online and mobile banking and evolving new payment service companies have increased the number of daily transactions multifold. The reconciliation market is anticipated to witness rapid growth in the region to ensure secure, cost-effective and translucent transactions and intense competition among banks and other financial companies.
Resilient regulatory framework for the financial markets in Europe are signs of this new regulatory age. Regulations will have an impact on the way banks organize and conduct their business. Reconciliation software would be an indispensable part of the banking operations to smoothen the operations of the bank and provide better customer experience.
Asia Pacific is the fastest growing regions in the global reconciliation software market due to increasing number of bank transactions, need for efficient banking operations, and growing automation and digitization in the sector.
Digital investment to modernize font and back-office systems and growing prevalence of cashless payments are projected to foster the growth of the market in LAMEA reconciliation software in banking.
Some of the most prominent players in Reconciliation Software in Banking market are API Software Limited (U.K), Automation Anywhere (U.S.), BlackLine Inc. (U.S.), BoradRidge (U.S.) and others.