Core banking software is entering an era of unprecedented innovation, transforming how financial institutions operate, serve customers, and pursue growth. As demand for digital solutions surges and banks strive to modernize their infrastructure, software providers are rapidly evolving their offerings. From modular cloud-based systems to AI-driven automation, the landscape is both dynamic and increasingly competitive—shaping the future trajectory of financial services around the world.

According to Straits Research, the global core banking software sector was valued at USD17.54 billion in 2024 and is on track to rise from USD20.12 billion in 2025 to an estimated USD60.27 billion by 2033, demonstrating a compound annual growth rate of 14.70% during this forecast window. This robust momentum reflects a pressing need for agility, higher customer expectations, and mounting competition from fintech upstarts as well as established banking giants.

Key Players Shaping the Core Banking Software Landscape

Global leaders are fiercely competing to define the next generation of core banking. Prominent names in the sector include:

• Temenos (Switzerland): A long-term leader, Temenos is trusted by thousands of institutions. Their recent integration of Generative AI enhances data processing, streamlines workflow, and accelerates report generation. Banks can now derive actionable insights and customer recommendations simply by asking questions in plain language.

• Finacle (India): Developed by Infosys, Finacle powers over one billion customers in more than 100 countries. It’s known for offering cloud-based, modular services and deep analytics, enabling banks to tailor offerings and respond rapidly to shifting needs.

• Mambu (Germany): Renowned for its cloud-native, composable banking infrastructure, Mambu simplifies product assembly and innovation for banks of varying scales. Clients such as N26 and Santander leverage Mambu for rapid market entry and scalable, future-ready operations.

• Finastra (UK/Canada): Finastra’s platform is popular for omnichannel support and powerful integration with third-party fintech services, catering to both large global brands and regional banks alike.

• Thought Machine (UK): Specializing in cloud-native core systems, Thought Machine’s flagship Vault Core allows for modular deployment and easy API integration, empowering banks to break free from legacy constraints.

• Fiserv (USA): Fiserv’s solution, integrated across major American and international banks, focuses on digital engagement, real-time processing, and regulatory compliance—key for regions dealing with stringent data laws.

This group represents just the tip of the iceberg: other notable providers include Oracle FLEXCUBE, Backbase (Netherlands), and SDK.finance (Latvia).

Global and Country-Wise Growth Trends

North America

Banks across the United States and Canada are investing heavily in digital transformation and cybersecurity. The surge in partnerships between traditional institutions and fintech companies is accelerating the shift to cloud-based and API-driven architectures. Open banking regulations and widespread adoption of cloud computing are enabling banks to overhaul their legacy systems, fostering a robust climate of innovation and growth.

Europe

European countries, especially the UK, Germany, and the Netherlands, are at the forefront due to open banking regulations (such as PSD2) and the spread of digital challenger banks. The long-term consolidation of the banking sector is fueling modernization projects, API integration, and omnichannel capabilities. France and Spain are also quickly advancing, but continental diversity in digital readiness remains.

Asia-Pacific

Asia-Pacific—driven by markets such as India, China, Singapore, and Australia—is experiencing rapid digital adoption and the expansion of banking to rural and previously unbanked regions. Here, government support, mobile-first strategies, and aggressive cloud adoption are creating vast opportunities for scalable, high-availability core solutions.

LAMEA (Latin America, Middle East, Africa)

In Latin America, Brazil and Mexico are modernizing banking infrastructure, while fintech collaborations fuel innovation. The Middle East, led by the UAE and Saudi Arabia, is channeling investment into digital transformation. Africa stands out for its mobile-first banking revolution, with banks in Nigeria, Kenya, and South Africa particularly focused on scalable platforms suitable for low-connectivity environments.

New Technology and Industry Trends

Core banking software is advancing rapidly, with several major trends reshaping the competitive landscape:

• Cloud Ascendancy: Cloud-based models, especially SaaS, are now the norm for new deployments because they offer agility, scalability, and cost benefits. Hybrid architectures address regulatory restrictions while retaining flexibility.

• API-Driven and Modular Systems: Platforms are becoming "headless," using APIs for easy integration—enabling rapid innovation and tailored solutions for digital channels, wallets, and payments.

• Artificial Intelligence and Automation: AI/ML is driving smarter fraud detection and risk management. Generative AI supports tailored financial advice, customer engagement, and faster internal reporting, raising the standard for customer experience.

• Microservices and Composability: Instead of monolithic environments, banks now favor microservices—allowing incremental system upgrades, improved resilience, and a plug-and-play approach to adding or updating functionality.

• Omnichannel Experience: Modern platforms enable truly seamless operations, ensuring consistent banking experiences across mobile, web, branch, and call centers, all powered by real-time back-end processing.

• Blockchain Exploration: Although not yet widespread, blockchain is under active exploration, particularly for enhancing cross-border payments, trade finance, and digital identity management.

Recent News and Competitive Activity

• Temenos (Switzerland) launched a suite of Generative AI-driven tools, enhancing both client-facing and internal processes.

• Mambu (Germany) continued its global expansion by winning new deals with leading neobanks in Latin America and Southeast Asia.

• Fiserv (USA) accelerated omnichannel product rollouts and enhanced API capabilities to support neobanks and digital-first incumbents.

• Middle Eastern and Asian challenger banks have inked high-profile partnerships with Finacle and Mambu, signaling a major push for digital-first banking across these fast-growing regions.

• Thought Machine's (UK) Vault Core gained traction among Tier 1 banks in Europe and North America, reinforcing confidence in modular cloud deployments.