Market Analysis
published on Jan 07, 2025
Report Overview:
NelsonHall's market analysis of Transforming Core Banking Services consists of 102 pages.
Who is this Report for:
NelsonHall’s “Transforming Core Banking Services” report is a comprehensive market assessment report designed for:
- Sourcing managers investigating sourcing developments within the banking industry
- Vendor marketing, sales, and business managers developing strategies to target service opportunities within the banking industry
- Financial analysts and investors specializing in the banking industry sector.
Scope of this Report:
The report analyzes the global market for technology and operations services for core banking platforms and addresses the following questions:
- What is the current and future market for core banking technology and operations services in the banking industry?
- What is the size and growth of the banking industry's core banking technology and operations services by market segment?
- Within the banking industry, which processes are emerging strongly?
- What are the market segments for core banking technology and operations services in the banking industry, and what are their characteristics? What are the drivers, benefits, and inhibitors for each segment? What are vendor capabilities by segment?
- What technologies and platforms are being utilized, and what are the implications for the market segment?
- What are vendor challenges and critical success factors by market segment?
- How are key vendors positioned within each core banking technology and operations services for the banking industry services market segment?
Additional topics covered include contract lengths, pricing models, partnerships, acquisitions, delivery center locations, the use of offshoring, and vendor targeting by client size, geography, and sub-industry.
Key Findings & Highlights:
The BFS industry is responding to new business conditions of tightening regulations (Open Banking, shorter settlement times, rigorous risk management, and more reporting), new financial products, new competitors, and declining margins.
New technologies, primarily GenAI, offer novel functionality but have been used mainly for POCs, which lack widespread operational delivery. The changing technology landscape creates new challenges to maintaining data and operational security, which has slowed the maturation and adoption of these new technologies.
Bankers will increasingly move their focus to:
- Accelerating their migration to a microservices, open banking architecture and experimenting with AI and FinTech solutions to identify ways to transform their businesses
- Deploying GenAI to support relationship managers and middle/back-office process execution
- Accelerating their move to the cloud and automation of manual processes
- Support for business model change to open banking
- Agile deployment of new functionality with DevOps to accelerate new product introductions.