Market Size 2023 (Base Year) | USD 23.98 Billion |
Market Size 2032 (Forecast Year) | USD 58.68 Billion |
CAGR | 9.4% |
Forecast Period | 2024 - 2032 |
Historical Period | 2018 - 2023 |
According to Market Research Store, the global banking BPS market size was valued at around USD 23.98 billion in 2023 and is estimated to reach USD 58.68 billion by 2032, to register a CAGR of approximately 9.40% in terms of revenue during the forecast period 2024-2032.
The banking BPS report provides a comprehensive analysis of the market, including its size, share, growth trends, revenue details, and other crucial information regarding the target market. It also covers the drivers, restraints, opportunities, and challenges till 2032.
Global Banking BPS Market: Overview
The Banking Business Process Services (BPS) Market focuses on outsourcing various non-core but essential banking processes to third-party service providers. These services encompass a wide range of activities such as customer service, loan processing, mortgage processing, compliance management, payment processing, and back-office functions like data management and IT support.
By outsourcing these functions, banks aim to improve operational efficiency, reduce costs, and focus on core banking activities such as customer acquisition and financial services innovation. The rising adoption of digital technologies, automation, and cloud services is significantly shaping the growth of the banking BPS market.
Key Highlights
Banking BPS Market: Dynamics
Key Growth Drivers
Restraints
Opportunities
Challenges
Banking BPS Market: Segmentation Insights
The global banking BPS market is divided by product, application, and region.
Segmentation Insights by Product
Based on Product, the global banking BPS market is divided into back office, front office, middle office, and others.
The Back Office segment dominates the Banking BPS Market due to the critical nature of transaction processing, settlements, and administrative support that are essential for banking operations. The Back Office handles administrative and support functions such as transaction processing, payment processing, settlements, and record maintenance. This segment is focused on ensuring operational efficiency and accuracy in the execution of financial transactions.
The Front Office segment holds a significant portion of the Banking BPS Market, driven by the increasing need for banks to improve customer experience and enhance service delivery in a competitive market. The Front Office includes customer-facing services such as account management, customer service, and marketing. It also encompasses areas like onboarding, KYC (Know Your Customer) processes, and customer inquiries.
The Middle Office BPS market holds a considerable share, particularly with the growing complexity of regulatory environments and the need for efficient risk management processes in banking. The Middle Office refers to risk management, regulatory compliance, and performance reporting. It supports both the front and back office by ensuring that financial transactions are managed in accordance with regulations, risk protocols, and reporting standards.
Segmentation Insights by Application
On the basis of Application, the global banking BPS market is bifurcated into payment services, core banking, mortgage and loan, securities processing, others
The Payment Services segment dominates the Banking BPS Market due to the global transition towards digital payment methods, mobile banking, and cashless transactions. Payment Services encompass a wide range of financial transactions, including domestic and international transfers, mobile payments, card payments, and other digital payment methods.
The Core Banking segment holds a significant share of the Banking BPS Market, as every banking institution relies on smooth core operations for customer satisfaction and business continuity. Core Banking refers to the primary functions of a bank, such as customer account management, deposits, withdrawals, and general ledger maintenance. It includes activities like account opening, interest calculations, and end-of-day processes, all aimed at delivering uninterrupted banking services to customers.
The Mortgage and Loan segment is one of the larger contributors to the BPS market due to the complexity and volume of loans and mortgages that banks handle. Mortgage and Loan services cover the end-to-end processing of loan applications, from origination to servicing. This includes loan underwriting, credit checks, disbursements, and repayment processing.
Securities Processing accounts for a moderate share of the market, particularly in financial hubs like North America and Europe, where there is a high volume of securities trading. Securities processing involves the back-office functions of processing trades, settling transactions, and maintaining accurate records of securities, bonds, and stocks. This application segment is highly regulated and involves complex processes to ensure the timely and accurate execution of securities transactions.
Report Attributes | Report Details |
---|---|
Report Name | Banking BPS Market |
Market Size in 2023 | USD 23.98 Billion |
USD 58.68 Billion | |
Growth Rate | CAGR of 9.40% |
Number of Pages | 219 |
Key Companies Covered | Atos, Avaloq, Capgemini, Cognizant, Concentrix, FirstSource, FIS, Genpact, HCL, Hexaware Technologies, Infosys, NIIT, SLK, Tata BSS, TCS, Wipro, WNS, and others. |
Segments Covered | By Product, By Application, and By Region |
Regions Covered | North America, Europe, Asia Pacific (APAC), Latin America, Middle East, and Africa (MEA) |
Base Year | 2023 |
Historical Year | 2018 to 2022 |
Forecast Year | 2024 - 2032 |
Customization Scope | Avail customized purchase options to meet your exact research needs. Request For Customization |
Banking BPS Market: Regional Insights
North America holds a significant share of the global banking BPS market, driven by the early adoption of outsourced services, a highly developed banking sector, and an increasing focus on digital transformation. Banks in this region are outsourcing services to optimize operations, enhance customer experience, and improve compliance with evolving regulatory standards.
Europe is another key market for banking BPS services, with significant adoption in countries such as the UK, Germany, and France. The region’s banking sector faces stringent regulatory frameworks, leading banks to outsource business processes related to compliance, risk management, and reporting.
The Asia-Pacific region is expected to experience the highest growth rate in the banking BPS market, driven by rapid digital transformation, increasing competition among banks, and the growing complexity of regulatory requirements. Countries like India, China, and Australia are leading this growth, with outsourcing playing a critical role in enabling banks to scale operations and reduce costs.
The banking BPS market in Latin America is growing steadily, driven by increasing adoption of outsourcing services in the financial sector. Brazil and Mexico are the leading markets, with banks seeking to improve cost efficiencies and focus on core banking activities.
The Middle East and Africa (MEA) region is witnessing gradual growth in the banking BPS market, with increasing investments in banking technology and outsourcing initiatives. Countries like the UAE and South Africa are leading this trend, particularly in the areas of customer service, back-office operations, and compliance management.
Banking BPS Market: Competitive Landscape
The report provides an in-depth analysis of companies operating in the banking BPS market, including their geographic presence, business strategies, product offerings, market share, and recent developments. This analysis helps to understand market competition.
Some of the major players in the global banking BPS market include:
The global banking BPS market is segmented as follows:
By Product
By Application
By Region
Frequently Asked Questions:
What will be the value of the banking BPS market during 2024- 2032?
Based on statistics from the Market Research Store, the global banking BPS market size was projected at approximately US$ 23.98 billion in 2023. Projections indicate that the market is expected to reach around US$ 58.68 billion in revenue by 2032.
What will be the CAGR of the global banking BPS market?
The global banking BPS market is expected to grow at a Compound Annual Growth Rate (CAGR) of around 9.40% during the forecast period from 2024 to 2032.
Which region will drive the global banking BPS market?
North America is expected to dominate the global banking BPS market.
What are the significant factors driving the global banking BPS market?
The increasing regulatory requirements in the banking sector create a demand for BPS providers that specialize in maintaining compliance, reducing risks, and ensuring adherence to regulatory standards across various regions.
Who are the leading players functioning in the global banking BPS market growth?
Some of the prominent players operating in the global banking BPS market are; Atos, Avaloq, Capgemini, Cognizant, Concentrix, FirstSource, FIS, Genpact, HCL, Hexaware Technologies, Infosys, NIIT, SLK, Tata BSS, TCS, Wipro, WNS, and others.
What can be expected from the global banking BPS market report?
The global banking BPS market report provides a comprehensive analysis of market definitions, growth factors, opportunities, challenges, geographic trends, and competitive dynamics.
These dominant industry players use well planned strategies to occupied highest market share in this market. Some of the top players in Banking BPS business includes.
As per Banking BPS market analysis, North America is forecasted to occupied major share in the Banking BPS market.
The statistical data of the dominant industry player of Banking BPS market can be acquired from the company profile segment described in the report. This segment come up with analysis of major player’s in the Banking BPS market, also their last five-year revenue, segmental, product offerings, key strategies adopted and geographical revenue produced.
The report come up with a segment of the Banking BPS market based on Type, Region, and Application, Also offer a determined view on the Banking BPS market.
The report offers a nitty-gritty estimation of the market by providing data on various viewpoints that incorporate, restraints, drivers, and opportunities threats. This data can help in making suitable decisions for stakeholders before investing.
The sample report for Banking BPS market can be received after the apply from the website.
Banking BPS
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