Europe Core Banking Software Market Size, Share & Trends Analysis Report By Solution (Deposits, Loans, Enterprise Customer Solutions, Others), By Service (Professional Service, Managed Service), By Deployment (Cloud, On-Premise, SaaS/Hosted, Licensed), By End-User (Financial Institutions, Retail Banking, Treasury, Corporate Banking, Wealth Management, Others), By Bank Type (Large Banks, Midsize Bank, Small Banks, Community Banks, Credit Unions, Others) and By Country(U.K., Germany, France, Italy, Russia, Nordic, Benelux, Rest of Europe) Forecasts, 2024-2032

Market Overview

The Europe core banking software market share witnessed significant growth in the past and is expected to expand at a CAGR of 7.2% from 2022 to 2030.

The European Core Banking Software market is a dynamic industry with a sizable market. Core banking software refers to banks' programs to control various aspects of their day-to-day business, such as account management, customer relationship management, transactions, and other financial processes.

The growing use of digital banking services, which has increased demand for real-time banking solutions, is one of the main contributing reasons. Additionally, the need for automation in banking operations is fueled by the demand for central banking software solutions that can assist banks in streamlining their processes and cutting costs.

Market Dynamics

Europe core banking software market drivers

Growing demand for managing customer accounts from a single server

Over the forecast period, the heavy demand for successfully managing client banking accounts from a unified platform is anticipated to fuel market growth. Core banking solutions provide bank staff with correct information about the bank account through an end-to-end platform. Rapid reporting, enterprise content management capabilities, deposit accounts, credit analysis, customer onboarding, customer relationship management (CRM), account opening, loan origination, workflow, and deposit accounts, are all included in this platform. Also, core banking solutions combine the bank’s transactional and core systems, eliminating the need for manual operations and point solutions.

Banks worldwide are working on implementing AI-integrated core banking systems to extract actionable consumer data in real-time. These tools help banks improve operational efficiency, analyze transactions, identify fraudulent activities, minimize risks, and comprehend consumer behavior. Banks can make more informed judgments about their banking services, products, and operations because of their improved ability to evaluate complicated data sets.

Rising adoption of cloud-based solutions

The increasing usage of cloud-based or SaaS-based banking platforms offered by software experts such as Temenos AG, FIS, and Finastra is one of the significant market drivers. Banking businesses can monitor payments, transactions, and other activities using cloud-based solutions. As a result, the market will develop as the demand for efficiency and innovation in businesses grows.

The different banks growing adoption of cloud-based banking platforms is expected to propel core banking software market growth. Increasing adoption of remote banking, cybersecurity, Payment as a Service (PaaS), and Big Data technologies will likely support market growth during the projection period.

Europe core banking software market restraints

Privacy concerns and data security

With the rise in complex core banking software, security worries concerning data loss, mobile viruses, software bugs, and unencrypted data have grown. Credit unions, corporate banks, and financial institutes may see a drop in revenue due to data security and privacy concerns. Furthermore, not all core banking software offers operational flexibility at scale, leading to data security concerns and legal challenges. The hacker used the company’s data transfer file program to obtain access to the entry. As a result, as technology advances, the worry about data security grows.

Europe core banking software market opportunities

Rising emphasis toward the development of advanced banking systems

COVID-19 had a tremendous impact on workplace culture. Due to this situation, various banks and other financial institutions have been forced to allow their staff to work from home (WFH). The financial sector is grappling with rapid fluctuations in interest rates and delayed lease payments, which have caused a significant reconfiguration in the financial market. As a result of the present pandemic, many banks and other financial institutions find it challenging to restore changes in the overall loan and credit management scenario. Key market participants focus on releasing advanced software solutions to speed their digital transformation to overcome such hurdles. Such proactive actions are projected to boost demand for CBS, allowing the market to flourish.

Regional Analysis

The core banking software market in Europe is characterized by intense rivalry, with many long-standing players and recent entrants vying for market share. In the upcoming years, the market is anticipated to continue expanding due to rising demand for digital banking solutions, expanding use of cloud-based services, and emerging countries.

In a nutshell, The UK, Germany, and France are the industry leaders in Western Europe, where most Core Banking Software is sold. High levels of digitalization are present in the area, and a sizable percentage of the populace uses online banking services. The expansion of the Core Banking Software industry has also been aided by the region's abundance of well-established banks and financial institutions. At the same time, the Core banking software is seeing development in Eastern Europe, where nations like Poland, Russia, and Ukraine have promising futures. Additionally, Southern Europe is a developed market for core banking software, with countries like Greece, Italy, and Spain exhibiting consistent development in recent years. Furthermore, Northern Europe's demand for essential banking software is expanding quickly, with nations like Sweden, Norway, and Denmark dominating the sector. High levels of digitalization are present in the area, and a sizable percentage of the populace uses online banking services.

Segmental Analysis

The Europe core banking software market is segmented by solution, Service, Deployment, and end-use.

The solution is further segmented into deposits, loans, enterprise customer solutions, and others.

The enterprise customer solutions segment dominated the North American market and is expected to register a CAGR of 6.2% over the forecast period.

The segment can be further bifurcated by Service into professional and managed Services.

The professional service segment dominated the market in 2020 and is anticipated to grow at a CAGR of 11.4% over the forecast period.

Based on Deployment, the market is sub-segmented into on-premise and cloud.

The on-premise segment dominated the market and is expected to grow at a CAGR of 6.4% during the forecast period.

Based on end-use, the market is sub-segmented into banks, financial institutions, and others.

The bank's segment is expected to dominate the market, registering the highest CAGR of 7.7% over the forecast period.

Recent Developments

• September 2021 – SAP SE announced the establishment of “Fioneer,” a financial services industry joint venture between Dediq GmbH and SAP SE. SAP Fioneer is a financial services software add-on from SAP. It offers new solutions to help its customers in the ever-changing banking and insurance industries.
• August 2021 – As part of the Oracle Banking Suite, W1TTY integrates Oracle FLEXCUBE, Oracle Banking APIs, and Banking Payments. Real-time payments, digital experience, and retail and business banking applications are all part of the package.