Third-Party Banking Software Market by Application, End-user, Deployment, and Geography - Forecast and Analysis 2021-2025

The third-party banking software share is expected to increase by USD 3.04 billion from 2020 to 2025, and the market's growth momentum will decelerate at a CAGR of 10%.

This third-party banking software research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers third-party banking software segmentations by end-user (retail users and corporate users), deployment (on-premises and cloud-based), application (core banking software, asset and wealth management software, and other banking software), and geography (Europe, North America, APAC, South America, and MEA). The third-party banking software report also offers information on several market vendors, including Accenture Plc, Capgemini Services SAS, Fiserv Inc., Infosys Ltd., Oracle Corp., SAP SE, Tata Consultancy Services Ltd., Temenos AG, Fidelity National Information Services Inc., and International Business Machines Corp. among others.

What will the Third-party Banking Software Size be During the Forecast Period?

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Third-party Banking Software: Key Drivers, Trends, and Challenges

The growing use of digital payment solutions is notably driving the third-party banking software growth, although factors such as poor internet connectivity in developing countries may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the third-party banking software industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Third-party Banking Software Driver

One of the key factors driving the third-party banking software market growth is the growing use of digital payment solutions, especially in the banking industry. For instance, digital payments are expected to constitute almost 90% of the total money spent in Canada by 2030. Hence, various enterprises in the banking industry across the globe are offering digital payment solutions to improve day-to-day processes and gain a competitive advantage over their rivals. Therefore, it is also encouraging other enterprises in this industry to offer digital payment solutions in their product offerings. For instance, American Express Canada offers the American Express vPayment, a digital payment solution, which is expected to replace plastic cards with virtual account numbers and allow businesses to pay and settle a wide range of corporate expenses smoothly. It will provide an easy option for enterprises to pay hotel bills and other travel expenses to their employees. With the growth in such digital payment platforms, the demand for third-party banking software will also increase, as it will help the enterprises to manage their digital payment platforms. Therefore, with the increase in digital payments, the demand for third-party banking software is also expected to increase during the forecast period.

Key Third-party Banking Software Trend

Another key factor driving the third-party banking software market growth is the incorporation of analytics into third-party banking software. Customers in the banking industry are changing their ways of accessing banking services owing to the emergence of digital technologies. They are embracing mobile devices and digital technologies to interact with enterprises and access banking services. This has led to the exponential growth of customer data with the enterprises in the banking industry. The data that is gathered by these enterprises can be analyzed, which will empower them to make smarter and faster decisions to improve efficiencies throughout the business. Hence, it is encouraging enterprises to opt for third-party banking software with analytics. It helps enterprises in driving profitability, improving decision-making, reducing risk, gaining valuable customer insight, and optimizing performance. This solution can be incorporated directly into customer relationship management (CRM) and other solutions, which will help employees to work more efficiently and make smart decisions. These factors are encouraging various enterprises to offer analytics solutions with third-party banking software during the forecast period.

Key Third-party Banking Software Challenge

Poor internet connectivity in developing countries is one of the key challenges hindering the third-party banking software market growth. A strong and high-quality network is the major requirement for a third-party banking software to offer highly efficient and effective operations. To use this software, enterprises should have a constant internet connection that will enable them to operate efficiently in real-time. Furthermore, high bandwidth is required to transfer data from connecting devices such as servers. In addition, if the software is unable to update real-time transactions, especially in the investment banking sector, it can cost huge monetary damage to the enterprises. Also, customers use various services such as internet banking, mobile banking, and digital payments, which are not possible without proper internet connectivity. The low internet speed in major emerging economies such as India and Mexico compared with the global average internet speed poses a challenge to vendors in this market. For instance, in December 2018, the average broadband internet speed in these emerging countries was 50% lesser than the global average broadband internet speed. The lack of internet connectivity will force enterprises to opt for traditional banking process, thus restricting the growth of the global third-party banking software market during the forecast period.

This third-party banking software market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.

Parent Market Analysis

Technavio categorizes the global third-party banking software market as a part of the global application software market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the third-party banking software during the forecast period.

Who are the Major Third-party Banking Software Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

• Accenture Plc
• Capgemini Services SAS
• Fiserv Inc.
• Infosys Ltd.
• Oracle Corp.
• SAP SE
• Tata Consultancy Services Ltd.
• Temenos AG
• Fidelity National Information Services Inc.
• International Business Machines Corp.

This statistical study of the third-party banking software encompasses successful business strategies deployed by the key vendors. The third-party banking software is fragmented and the vendors are deploying growth strategies such as investing a significant share of their capital in R&D and adopt organic growth strategies to compete in the market.

Product Insights and News

• Accenture Plc- The company develops and provides software for core banking.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The third-party banking software forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Third-party Banking Software Value Chain Analysis

Our report provides extensive information on the value chain analysis for the third-party banking software, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The report has further elucidated on other innovative approaches being followed by service providers to ensure a sustainable market presence.

Which are the Key Regions for Third-party Banking Software?

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33% of the market's growth will originate from Europe during the forecast period. UK, Germany, and France are the key markets for third-party banking software in Europe. Market growth in this region will be slower than the growth of the market in APAC and South America regions.

Owing to the growth in the banking industry will facilitate the third-party banking software growth in Europe over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

COVID-19 has accelerated the shift to digital banking, urging senior bank leaders to rethink their priorities and adopt third-party banking software. This temporary surge during 2020-2021 is likely to reduce post the pandemic, which will lead to normal conditions due to the lack of the heightened demand for third-party banking software in the region. This trend is likely to bring the increased use of third-party banking software to normal after this crisis.

What are the Revenue-generating End-user Segments in the Third-party Banking Software?

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The third-party banking software share growth by the retail users will be significant during the forecast period. The retail users segment includes various software used for the management of specific retail banking functions such as account management, customer service request management, e-wallet operation management, multiple payments management, fund transfers, banking profile personalization, and loan management. Banks and other financial institutions are focusing on the development of more secure websites as well as software applications to cater to the need of retail users, which is estimated to be a key driver for the growth in the adoption of third-party banking software in retail users segment. 

Besides the above-mentioned factors, the post COVID-19 impact has brought forth a slowdown in or fast tracked the demand for the service or product. This report provides an accurate prediction of the contribution of all the segments to the growth of the third-party banking software size and actionable market insights on post COVID-19 impact on each segment.

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What are the Key Data Covered in this Third-party Banking Software Report?

• CAGR of the market during the forecast period 2021-2025
• Detailed information on factors that will drive third-party banking software growth during the next five years
• Precise estimation of the third-party banking software size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the third-party banking software industry across Europe, North America, APAC, South America, and MEA
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of third-party banking software vendors

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