The global core banking market is expected to reach $10.1 billion by 2017, according to a new report released by research firm Celent.
According to the firm, the estimated size of the global core banking market stands at $8.6 billion in 2013, and is expected to grow at a 4 percent rate over the next four years.
In North America, Celent says that long pent-up demand for core replacement is coming to a point where a few large banks will take the plunge, and as successes proliferate, more banks will be emboldened to follow, while small U.S. banks will migrate slowly to new core platforms. Europe will see a continued drip of replacements, while the faster growing, less mature regions of the world will see a higher appetite for core replacement to meet the faster-changing needs of their particular geographies, the firm said. Overall, Celent predicts that North America (excluding Mexico) will grow at a at 3.7 percent rate; Europe at 3.5 percent; Asia-Pacific at 4.3 percent; and Latin America at 4.1 percent.
Although bank behavior is highly dependent on geography, Celent observes three common trends around the world. These are: an increased willingness to consider core replacements, whether the big bang or phased approach; cost and customer demands driving the interest in banks to make a core switch; and the maturation of vendor products to the point that prior trepidation about core systems replacements are no longer warranted.