The global core banking market is expected to rise to $5.1 billion by the end of 2013, according to a recent report from Boston-Based analyst firm Celent.
According to the report, titled "A Snapshot of the Global Core Banking Market" the core banking market size was $4.8 billion in 2011.
According to Celent, in North America most of the core banking solutions present are domestic and have established themselves firmly in this mature market. Many popular solutions are legacy solutions wrapped with modern architecture upgrades, the report found, adding that due to the regulatory environment within the U.S., the market remains fairly insular with regard to major global solutions. FIS and Fiserv hold the largest market share, with Jack Henry & Associates also holding a sizable presence with banks of less than $20 billion in assets.
In Western Europe, there is a more competitive environment where domestic and international core banking providers both have a sizable presence, according to the report. The large banks in this area have disparate systems, with international subsidiaries typically running on different platforms. Misys, FIS and ERI constitute most of the market share in Western Europe, reports Celent.
In developing economies in Latin America and Asia, Celent reports, many large banks have started core transformations in the last the years, and the market has seen high activity among small to midsize banks over the last four years. Within Asia-Pacific, Nucleus, Misys and Oracle have the largest share of bank with less than $1 billion in assets, while Temenos, Oracle, FIS and Infosys are the leaders with banks having more than $1 billion in assets.