Third-party Banking Software Market | Industry Insights By Growth, Emerging Trends And Forecast By 2032

IMARC Group’s report titled “Third-party Banking Software Market Report by Product (Core Banking Software, Multi-Channel Banking Software, Business Intelligence Software, and Others), Deployment Type (On-premises, Cloud-based), Application (Risk Management, Information Security, Business Intelligence, and Others), End-User (Commercial Banks, Retail and Trading Banks), and Region 2024-2032“. The global third-party banking software market size reached US$ 28.9 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 54.8 Billion by 2032, exhibiting a growth rate (CAGR) of 7.2% during 2024-2032.

Factors Affecting the Growth of Third-Party Banking Software Industry:

  • Digital Transformation in Banking:

The banking industry’s swift shift towards digitalization is fueling the growth of the third-party banking software market. As consumer demands and technological capabilities evolve, traditional banks are acknowledging the necessity to revamp their services. To achieve this, they are partnering with external software providers to revolutionize their infrastructure and introduce cutting-edge digital offerings. This digital overhaul encompasses the integration of mobile banking, online account management, and digital payment systems. In response, third-party software suppliers are leveraging this opportunity by providing solutions that enable banks to simplify their operations, boost customer interaction, and stay ahead in the digital landscape.

  • Regulatory Compliance and Risk Management:

Financial institutions face significant challenges due to strict regulatory demands and the constantly changing compliance landscape. To cope with these challenges, banks are increasingly relying on specialized third-party software solutions that focus on regulatory compliance and risk management. These solutions assist banks in adhering to continuously shifting regulations like anti-money laundering (AML) and know-your-customer (KYC) requirements. Moreover, they offer sophisticated analytics and risk evaluation capabilities, empowering banks to detect and address potential risks in advance. The rising demand for effective compliance and risk management solutions has driven the growth of the third-party banking software sector.

  • Cost Efficiency and Scalability:

When it comes to streamlining their operations, banks must prioritize budget-friendliness and adaptability. One way to achieve this is by leveraging external banking software, which eliminates the need for costly in-house development. By outsourcing software development, maintenance, and updates to experts, banks can sidestep significant expenditures. Furthermore, these third-party solutions typically offer flexible capacity, enabling banks to scale their software usage up or down to suit their unique needs, whether they’re a small local institution or a multinational financial powerhouse. This adaptability enables banks to allocate resources more strategically, concentrating on their core competencies while relying on specialized software providers for specific functions.

Leading Companies Operating in the Global Third-Party Banking Software Industry:

  • Accenture, Capgemini
  • Deltek, IBM
  • Infosys
  • Microsoft Corporation
  • NetSuite Inc.,
  • Oracle Corporation
  • SAP SE
  • Tata Consultancy Services

For an in-depth analysis, you can refer sample copy of the report:

Third-Party Banking Software Report Segmentation:   

By Product:

  • Core Banking Software
  • Multi-Channel Banking Software
  • Business Intelligence Software
  • Others

Core banking software dominates the market due to its indispensable role as the central nervous system of banking operations, managing core functions such as transactions, consumer data, and financial services, making it a fundamental and essential component for financial institutions.

By Deployment Type:

  • On-premises
  • Cloud-based

On-premises holds maximum number of shares due to the continued preference of many organizations, especially in sensitive industries such as finance and healthcare, for maintaining direct control over their infrastructure and data within their own physical facilities.

By Application:

  • Risk Management
  • Information Security
  • Business Intelligence
  • Others

Risk management represents the largest segment due to the increasing regulatory requirements and the growing need for financial institutions to proactively identify and mitigate potential risks in their operations.

By End User:

  • Commercial Banks
  • Retail and Trading Banks

Retail and trading banks dominate the market due to their extensive consumer base, which includes individual consumers and businesses, resulting in high demand for a wide range of banking services and software solutions.

Market Breakup by Region:

  • North America (United States, Canada)
  • Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
  • Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
  • Latin America (Brazil, Mexico, Others)
  • Middle East and Africa

Global Third-Party Banking Software Market Trends:

The emergence of fintech firms and the increasing popularity of open banking have opened up opportunities for traditional banks to collaborate with fintech startups. In order to stay competitive and offer a broader range of services, banks frequently incorporate third-party software solutions that allow them to seamlessly partner with fintech companies. This cooperation improves the overall customer experience and grants access to innovative financial products and services. Moreover many banks and financial institutions are pursuing global expansion strategies to enter new markets and diversify their sources of income. When expanding internationally, they often need flexible and scalable software solutions to adapt to various regulatory environments and consumer preferences. Third-party providers of banking software offer the expertise and localized solutions necessary for financial institutions to successfully enter new regions while reducing risks and expenses.

Note: If you need specific information that is not currently within the scope of the report, we will provide it to you as a part of the customization.

About Us:

IMARC Group is a leading market research company that offers management strategy and market research worldwide. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses.

IMARCs information products include major market, scientific, economic and technological developments for business leaders in pharmaceutical, industrial, and high technology organizations. Market forecasts and industry analysis for biotechnology, advanced materials, pharmaceuticals, food and beverage, travel and tourism, nanotechnology and novel processing methods are at the top of the companys expertise.

Our offerings include comprehensive market intelligence in the form of research reports, production cost reports, feasibility studies, and consulting services. Our team, which includes experienced researchers and analysts from various industries, is dedicated to providing high-quality data and insights to our clientele, ranging from small and medium businesses to Fortune 1000 corporations.

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