A Snapshot of the Global Core Banking Market
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A core banking system forms the central unit of a financial institution, and banks around the world have adopted modern core banking systems to support and upgrade their products and services and survive in the competitive environment. The core banking market size is estimated to be around $3.5 billion for the year 2009 and is expected to grow to around $3.9 billion by 2011. Over 75% of the core banking revenues are due to new core banking implementations around the world.
In the new report, A Snapshot of the Global Core Banking Market, Celent looks at the core banking market in various geographies and provides an estimate of the total market size of core banking solutions and services. The developed regions of North America and Western Europe have a modern core infrastructure implemented in most of the financial institutions. Many innovative, nontraditional financial institutions are opening up in these developed regions, leading to opportunities for core banking vendors. The majority of the large banks in the developing regions of Asia-Pacific, Latin America, Eastern Europe, Middle East Asia, and Africa have implemented core banking solutions in the past decade, and the potential exists among the small and midsize banks. While hosted implementations have been popular in North America and Western Europe, the rest of the world is dominated almost entirely by on-premise implementations.
”Core banking vendors have been seeing stiff competition in the developing regions due to the global nature of most solutions,” says Rajesh M R, Celent Analyst and coauthor of the report. “Earlier, the banks were depending on domestic solutions, but the scenario is changing quickly. More and more international solutions are penetrating into both the developing and developed markets.”