A Snapshot of the Global Core Banking Market

May 28, 2010

Abstract

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.”

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

3

Geographical Market Overview

5

 

North America

5

 

Western Europe

10

 

Asia-Pacific

15

 

Eastern Europe, Middle East Asia, and Africa (EEMEA)

19

 

Latin America

23

Core Banking Market Size Estimate

27

 

Initial Estimate

27

 

Geographical Demand

28

 

Pricing Estimates

29

 

Market Valuation

30

Conclusion

32

Leveraging Celent’s Expertise

33

 

Support for Financial Institutions

33

 

Support for Vendors

33

Related Celent Research

34

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