In 2020, the top 10 Banking and Financial Services software vendors accounted for nearly 50.9% of the global Banking and Financial Services applications market which grew 2.6% to approach nearly $32.6 billion in license, maintenance and subscription revenues.
Microsoft was the market leader with a 19.8% market share in license, maintenance and subscription revenues. FIS Global was #2, followed by SAP, Oracle, and NCR Corporation.
We ask the simple question: Who’s buying Banking and Financial Services applications from whom and why? And we provide the answers – supported by decades of research – to our clients around the world. (Sample from our Apps Database)
Through our forecast period, the Banking and Financial Services applications market size is expected to reach $35.6 billion by 2025, compared with $32.6 billion in 2020 at a compound annual growth rate of 1.8%.
| Exhibit 2: Worldwide Banking and Financial Services Software Market 2020-2025 Forecast, $M | |||
|---|---|---|---|
| Year | 2020 | 2025 | 2020-2025 CAGR, % |
| Total | 32579 | 35592 | 1.8% |
Source: Apps Run The World, December 2021
Top 10 Banking and Financial Services Software vendors
Banking and Financial Services (Credit, lending, securities institutions) – Hedge fund administration, Core Banking, Cash, treasury, payment, risk management and supply chain finance solutions, Investment management system, Securities transaction and online trading technology, Mortgage, Loan origination and processing solutions, Teller transaction and loan processing, automated loan decisioning, analytical science analysis, workflow management, and sales and service solutions, Financials, HR, Procurement
Here are the rankings of the top 10 Banking and Financial Services software vendors in 2020 and their market shares.
| Rank | Vendor | 2019 Banking and Financial Services Apps Revenues, $M | 2020 Banking and Financial Services Apps Revenues, $M | YoY Growth | 2020 Banking and Financial Services Market Share, % | Recent Developments |
|---|---|---|---|---|---|---|
| 1 | Microsoft | Subscribe | Subscribe | 10.0% | Subscribe | In February 2021, Microsoft announced the availability of Microsoft Cloud for Financial Services public preview beginning on March 2021, with new capabilities for retail banking and additional new services fit for the broader industry to come. By integrating existing and new capabilities in Microsoft 365, Azure, Dynamics 365, and Microsoft Power Platform, Microsoft Cloud for Financial Services unlocks unprecedented value. |
| 2 | FIS Global | Subscribe | Subscribe | 3.5% | Subscribe | In January 2020, FIS acquired a majority interest in Virtus Partners, a provider of high-value managed services and technology to the credit and loan market. That follows the 2019 purchase of Worldpay for its payment processing business in a deal worth $43 billion. |
| 3 | SAP | Subscribe | Subscribe | 2.5% | Subscribe | In April 2021, SAP and investment company Dediq GmbH entered into a strategic partnership to form a dedicated Financial Services Industry Unit, which will be jointly owned by the two companies. Both SAP and Dediq will provide the FSI Unit with the funding, technology, and development expertise, as well as a broad ecosystem of partners. More than 80% of the top 1,000 banks and insurers are already SAP customers. The new solutions will be built as part of SAP’s industry cloud solutions, based on SAP technologies and applications such as SAP HANA, SAP S/4HANA, SAP Business Technology Platform and others. |
| 4 | Oracle | Subscribe | Subscribe | -0.4% | Subscribe | In November 2020, Oracle rolled out anti-money laundering services for banks. Oracle Financial Crime and Compliance Management Cloud Services is an application suite designed for mid-sized banks and smaller financial institutions. It offers services for the full anti-money laundering (AML) lifecycle so organisations can quickly identify abnormal customer behavior, and so that they can streamline compliance activities. |
| 5 | NCR Corporation | Subscribe | Subscribe | -0.9% | Subscribe | In April 2021, NCR and Google Cloud announced a global strategic partnership. NCR will expand cloud availability of its Digital Banking software portfolio, including NCR Channel Services for retail banking as well as its card and payments processing platform NCR Authentic. NCR and Google Cloud will collaborate on product development and innovation to further enhance the suite of cloud-based solutions and analytics available to banking customers on Google Cloud. More than 15,000 banks and credit unions are powered by NCR. |
| 6 | Jack Henry & Associates | Subscribe | Subscribe | 1.7% | Subscribe | In August 2021, Jack Henry Banking division introduced SecurePort, a Sheltered Harbor solution. SecurePort is available to banks using the SilverLake System core to help provide end users with timely access to their account balances and funds should critical systems and traditional backups fail. Jack Henry Banking currently serves more than 1,000 banks as a single source for integrated, enterprise-wide automation and as a single point of contact and support. |
| 7 | Temenos Group AG | Subscribe | Subscribe | -7.2% | Subscribe | In September 2021, Temenos, Video, a fully cloud-based online banking (BaaS) provider, and Aion Bank, a digital bank and authorized credit institution in Europe, have launched a strategic collaboration aimed at accelerating the deployment of Bank as a Service (BaaS) in Europe. BaaS is emerging as a megatrend within financial services, where licensed banks integrate their digital banking services directly into the products of other non-financial businesses. |
| 8 | SS&C Technologies | Subscribe | Subscribe | -4.8% | Subscribe | In December 2021, SS&C Technologies acquired Hubwise Holdings Limited, a regulated U.K. B2B investment platform serving advisers, discretionary wealth managers, and self-directed digital D2C propositions. The acquisition adds 58 employees serving 51 customers in the U.K. |
| 9 | Fiserv | Subscribe | Subscribe | -0.5% | Subscribe | In January 2021, Fiserv completed its acquisition of the Ondot digital experience platform for financial institutions. The transaction will further expand Fiserv’s digital capabilities, enhancing its suite of integrated solutions to enable clients of all sizes to deliver frictionless, digital-first, and personalized experiences to their consumers. Ondot provides more than 4,500 banks and credit unions with a digital card services platform to drive cardholder engagement. |
| 10 | Finastra | Subscribe | Subscribe | 6.5% | Subscribe | In November 2021, Finastra introduced new anti-money laundering compliance capabilities integrated with its Fusion Global PAYplus core payments solution, via Fincom.co and the FusionFabric.cloud open developer platform. |
| Subtotal | Subscribe | Subscribe | 4.2% | Subscribe | ||
| Other | Subscribe | Subscribe | 0.9% | Subscribe | ||
| Total | 31768 | 32579 | 2.6% | 100% |
Source: Apps Run The World, December 2021
Other Banking and Financial Services software providers included in the report are: ACI Worldwide, Inc., Adobe, ADP, AdviseSoft, Alfa Financial Software Holdings plc, ARCHIBUS, Argo Data Resource Corp., Asseco Group, Atlassian, Avaloq, Axway, Backbase, Banqsoft AS, BIS – Business Integration Services, Bloomberg, Budgetrac, Calypso Technology, Calyx, Capita Software, Cisco Systems, Citrix, Clarifire, Clearwater Analytics, COCC, Constellation Financing Systems Corp, CoStar Group, DATEV, Deloitte, Dileoz, DocuSign, Inc., Dropbox, Ebix, Edgeverve, an Infosys company, eFront, S.A., Ellie Mae, Envestnet, Equifax, ERI Bancaire, Exela Technologies, Inc., FICO, Fraedom, GBST Holdings Limited, Genesys Telecommunications Laboratories, Google, Hexagon, Homnet Leasing, HubSpot, IBM, Imagine Software, Informatica, International Decision Systems (IDS), ION Trading, ISGN Corporation, Jack Henry & Associates, Kofax, KOGER, Inc., Laserfiche, Linedata Services S.A., LoanLogics, LogMeIn, Inc., LRS Retirement Solutions, LTi Technology Solutions, Milliman Marc, MSCI, Murex, NetSol Technologies Inc., Newgen Software, Nice Systems, Nuance Communications Inc., Odessa Technologies, Oleeo, Open Text Corporation, Paycom, Pegasystems, Q2ebanking, Quantrix, Salesforce, Serrala, ServiceNow, SimCorp, SmartStream, Sopra Steria Group SA, Tableau Software, TalentMap, Teradata Corporation, Thomson Reuters Elite, Tieto (Ex EMRIC AB), TotalSoft, Verint Systems Inc., White Clarke Group, Wolters Kluwer, Workday, Workiva, ZenTreasury, Zoom Video Communications, and many others.
Custom data cuts related to the Banking and Financial Services Applications market are available:
- Top 500 Banking and Financial Services Applications Vendors and Market Forecast 2020-2025
- 2020 Banking and Financial Services Applications Market By Functional Market (16 Markets)
- 2020 Banking and Financial Services Applications Market By Country (USA + 45 countries)
- 2020 Banking and Financial Services Applications Market By Region (Americas, EMEA, APAC)
- 2020 Banking and Financial Services Applications Market By Revenue Type (License, Services, Hardware, Support and Maintenance, Cloud)
- 2020 Banking and Financial Services Applications Market By Customer Size (revenue, employee count, asset)
- 2020 Banking and Financial Services Applications Market By Channel (Direct vs Direct)
- 2020 Banking and Financial Services Applications Market By Product
Exhibit 4 shows our projections for the enterprise applications market by vertical segment, based on the buying preferences and the customer propensity to invest in new software within those industries as they continue to upgrade and replace many legacy industry-specific applications that have been identified and tracked in our Buyer Insight Database.
Exhibit 4: Worldwide Enterprise Applications Market Forecast 2019-2024, By Vertical Industry, $M
Banking and Financial Services Software Purchases Win/Loss Analysis As Part Of Enterprise Applications Buyer Insight Customer Database
On the buyer side, customers are investing in Banking and Financial Services systems based on new features and capabilities that are expected to replace their existing legacy systems. In many cases, competitive upgrades and replacements that could have a profound impact on future market-share changes will become more widespread.
Since 2010, our global team of researchers have been studying the patterns of the latest Banking and Financial Services software purchases by customers around the world, aggregating massive amounts of data points that form the basis of our forecast assumptions and perhaps the rise and fall of certain vendors and their products on a quarterly basis.
Updated continuously, our database features extensive win/loss analysis. Each year our research team identifies tens of thousands of these customer Banking and Financial Services wins and losses from public and proprietary sources.
The research results are being incorporated into regular updates in our Enterprise Applications Buyer Insight Customer Database. You can access the Quarterly Win/Loss Analysis Scoreboard and our Enterprise Applications Buyer Insight Customer Database by becoming a subscriber.
Source: Apps Run The World, December 2021
Further Readings
An expanded version of this report covers the top 750+ Banking and Financial Services Software Vendors, offering in-depth analysis of the market dynamics, vendors’ Strengths, Customers, Opportunities, Risks and Ecosystems as well as their ability to gain Shares(SCORES) within their respective space. We also offer win-loss analysis of the quarterly wins of these top vendors and whether incumbents and upstarts pose any real threat to their standing amid shifting market requirements and user preferences.
More Enterprise Applications Research Findings
Based on the latest annual survey of 3,000+ enterprise software vendors, Apps Run The World is releasing a number of dedicated reports, which profile the world’s 500 largest Enterprise Applications Vendors (Apps Top 500) and the world’s 500 largest Cloud Applications Vendors (Cloud Top 500) ranked by their 2015-2020 product revenues.
Their 2020 results are being broken down, sorted and ranked across 16 functional areas (from Analytics to Treasury and Risk Management) and by 21 vertical industries(from Aerospace to Utility), as shown in our Taxonomy. Further breakdowns by subvertical, country, company size, etc. are available as custom data cuts per special request.
Research Methodology
Each year our global team of researchers conduct an annual survey of thousands of enterprise software vendors by contacting them directly on their latest quarterly and annual revenues by country, functional area, and vertical market. We supplement their written responses with our own primary research to determine quarterly and yearly growth rates, In addition to customer wins to ascertain whether these are net new purchases or expansions of existing implementations.
Another dimension of our proactive research process is through continuous improvement of our customer database, which stores more than one million records on the enterprise software landscape of over 100,000 organizations around the world.
The database provides customer insight and contextual information on what types of enterprise software systems and other relevant technologies are they running and their propensity to invest further with their current or new suppliers as part of their overall IT transformation projects to stay competitive, fend off threats from disruptive forces, or comply with internal mandates to improve overall enterprise efficiency.
The result is a combination of supply-side data and demand-generation customer insight that allows our clients to better position themselves in anticipation of the next wave that will reshape the enterprise software marketplace for years to come.
