Companies making their way into the financial services sector have a lot in common. They are all client-centric and big on leveraging advanced technology to develop profound services and solutions. The global Core Banking Software market size is projected to reach USD 11,960 million by 2027, from USD 9,913.4 million in 2020, at a CAGR of 2.3% during 2021-2027.
The rapid changes in the core banking space, such as new business models, new technologies and customer expectations, denote that the future will be different from today on so many levels. The core banking industry has standard analytical accuracy and high data integrity which is a brilliant attempt to reveal the key opportunities available in the global core banking software market to help entrants gain a strong market position.
In recent times, the market has grown steadily with prominent users increasingly adopting strategies. The market is expected to rise within due time. For core banking to succeed in the future, there will be a need to embrace emerging technologies, maintain flexibility and adapt scalable business models. Some of the possible trends to shape the future of the industry include:
Cloud-based core banking system: In 2017, 74% of financial service companies in the industry adopted a public/hybrid cloud architecture to some degree. However, most financial institutions have generally taken a risk-based approach to embrace the cloud-based banking system. Starting with a proof of concept, software as a service solution, developing applications, and so on. So now, what is the probability of moving core processing to the cloud? It sure is a feature businesses need to adapt and transition to in the future. Cloud-based core banking services have benefits like:
- Infrastructure savings: Cloud-based core banking can reduce high infrastructure costs for businesses, discarding the need to maintain their own data centres.
- Expansion and agility on demand: Cloud-based services are flexible and easy to expand or reduce on demand, meeting up with the IT needs of organizations.
- Security and Availability: Public clouds provide all-round optimum security and privacy of information.
Artificial intelligence: Over the past decade, the amount of structured and unstructured data available to banks has skyrocketed. With advances in cloud computing and machine learning technologies, artificial intelligence is shaping the prospects of banking and financial services. With the data history captured around Artificial Intelligence, core banks will be able to make more informed decisions on various functions, including back-office operations, customer experience, marketing, and product management.
Creation of ecosystems: The next generation of core banking product providers are creating the ecosystem from which banks can choose the best of breed modules. A great example of this ecosystem is Appzone Core. Appzone Core’s honeycomb of products cater to digital financial operations and services including digital omni-channel online banking platform, digital core banking, correspondent banking, card management systems and agent banking.
By providing retail and commercial banks with cloud-based software that manages core operations including accounting, deposits, loans, and customer interactions in a fully digital and automated way, Appzone Core has positioned itself as an innovative leader in the next generation of core banking providers.
Expanding customer segments: In a generation where excitement on anything is momentary, customer loyalty is not so easy to acquire. In the future, there is a strong possibility that the core banking industry will expand to banks introducing new products using the information gained from a wide-range of sectors. Thus continuing to produce services and offer relevant, attractive and innovative tactics which will increase customer loyalty and make acquiring new ones more accessible.
A good core banking infrastructure is one every financial institution should look out for; they help customers enjoy improved freedom and flexibility with transactions, simplify banking processes, increase convenience and overall customer satisfaction. For years, AppZone’s flagship service, BankOne – a digital core banking application on cloud infrastructure, has maintained a track record of helping banks seamlessly manage all operations and deliver banking services via digital channels. To discover more about AppZone’s leading core banking solution, book a demo session, or visit the website to learn more about our offerings.