SaaS Core Banking Market Set for Rapid Growth

The increased use of digital banking will speed up the need to have broader SaaS-based core banking systems worldwide.

The international SaaS-based market for core banking software is growing with a compelling impulse, with banks accelerating the digital transformation and migration to the cloud market. With a minimum value of $12.12 billion in 2025 and a CAGR of close to 20 percent, the market is set to attain $50.62 billion in 2033 because of the need to utilize scalable, flexible, and cost-effective banking platforms.

To upgrade outdated systems and support real-time data and customer experience over digital and mobile platforms, banks and financial enterprises are increasingly adopting SaaS applications. The SaaS core banking market is projected to increase by $17.26 billion in 2033 on top of the current $4.17 billion by 2025 as the use of AI-based analytics and cloud-based services rises in the United States.

The current market is widely dominated by software platforms, which form the basis of the transaction processing, digital payments, lending, and compliance. Public cloud implementations are adopted faster and have lower infrastructure costs than hybrid cloud models, which are becoming more popular with institutions in need of security and control. The most important area of application is still retail banking, but the segment that is developing quickly is digital banking.

North America is the most popular, with 40 percent of a shrink in the global market, with Asia Pacific anticipated to be the fastest-growing region as banks and other fintech providers are going to scale up their cloud-based processes. Key service providers such as Oracle Corporation, Fiserv Inc., and TEMENOS AG are reinforcing their offerings with fully managed SaaS platforms to garner demand by larger enterprises.