China Core Banking Software Market Size, Share & COVID-19 Impact Analysis, By Deployment (SaaS/Hosted and Licensed), Banking Type (Large Banks, Midsize Banks, Small Banks, Community Banks and Credit Unions) and By End-user (Retail Banking, Treasury, Corporate Banking and Wealth Management), 2023-2030

The China core banking software market size is projected to grow at a CAGR of 21.7% during the forecast period.

The country has witnessed a significant rise in the adoption of core banking software by financial institutions. Currently, there are more than 5,000 banking and financial institutions operating in China. The country’s banking sector has observed significant growth in lending to Micro & Small Enterprises (MSEs) and the manufacturing sector in 2022.

LATEST TRENDS

Growing Adoption of Open Banking System is Likely to Fuel the Market Growth

The trend toward open banking, which allows third-party providers to access bank data and offer services to customers is becoming more widespread in China. This is driving the development of open APIs and other solutions that enable banks to offer more diverse and innovative services to their customers. This is further expected to continue to shape the China core banking software market growth.

DRIVING FACTORS

Rise in Investments in Manufacturing Sector to Drive the Market Growth

The growing Chinese economy is continually focusing on lending money to various sectors. This strategy plays a vital role to boost the economy of the country. In September 2022, the total loan balance (corporate loans and advances) of China’s big six state-owned banks reached USD 12.85 trillion with a growth rate of 11.3% compared to the end of 2021. Additionally, in 2022, medium and long-term loans to China’s manufacturing industry increased by 33.8%. Further, China’s Non-Performing Loan (NPL) ratios for five out of the six big state-owned banks declined by the end of the September 2022. Thus, the continuous lending of loans to manufacturing and Micro & Small Enterprises (MSEs) is expected to drive the market growth.

RESTRAINING FACTORS

Competition from Domestic Players Providing Core Banking Software at Lower Prices May Hinder the Market Expansion

The China market for Core Banking Software (CBS) is highly competitive with the presence of prominent domestic players providing CBS at a lower price. This makes it difficult for international vendors to establish a strong presence in the market share. It puts them under pressure, as powerful new and local competitors capture market share. Further, these international players face language barrier and cultural issues, which could negatively impact the market growth.

China is one of the prominent countries in terms of fintech investment across the globe since 2018. According to the China Center for Information Industry Development (CCID Group), China’s fintech market size reached USD 85.7 billion in 2022 from USD 59.2 billion in 2019.

KEY INDUSTRY PLAYERS

In terms of competitive landscape, the market shows the presence of established and emerging core banking software companies. Shenzhen Sunline Tech Co., Ltd. dominated the China market in 2022. The company has over 20 banking core banking clients in China and has implemented core banking system in commercial banks. The company focuses toward offering better functionalities and the improvement of customer experience.

Some of the other companies with a considerable presence in the U.K. market include Oracle Corporation, Temenos AG, IBM Corporation, Tata Consultancy Services Limited, SAP SE, and Fidelity National Information Services, Inc.

LIST OF KEY COMPANIES PROFILED:

• Shenzhen Sunline Tech Co. Ltd. (China)


• Oracle Corporation (U.S.)


• SAP SE (Germany)


• Temenos AG (Switzerland)


• Fidelity National Information Services, Inc. (U.S.)


• Fiserv, Inc. (U.S.)


• IBM Corporation (U.S.)


• Tata Consultancy Services Limited (India)


• Unisys Corporation (U.S.)


• Infosys Limited (India)

KEY INDUSTRY DEVELOPMENTS: 

• December 2021 – Hundsun Technologies acquired Finastra’s Fusion Summit product, which is used by large and medium-sized financial institutions in Hong Kong, Mainland China, and Macau.


• February 2021 – China UnionPay Data (CUPD) and its partner Asia Pacific Development Bank (APD Bank) selected HiSun Global (HSG) as their core banking system vendor.

REPORT COVERAGE

This market research report provides a detailed analysis of the industry. It focuses on key aspects such as an overview of the technological advancements, the popularity of core banking software in China, and pricing analysis. Additionally, the increasing number of investments by key players in fintech technologies in China, new product launches, key industry developments such as mergers, partnerships, & acquisitions, and the impact of COVID-19 on the market are also provided in the report. Besides this, the report offers insights into the market trends and highlights key industry dynamics. In addition to the aforementioned factors, it encompasses several factors that have contributed to the growth of the market in recent years.

Report Scope & Segmentation