Europe Core Banking Software Market Size, Share & Industry Analysis Report 2025-2032 European Banks Shift To Microservices Architecture, Driven By PSD2 And Regulatory Alignments

(MENAFN- GlobeNewsWire - Nasdaq) The Europe Core Banking Software Market is poised for 9.6% CAGR growth from 2025-2032, driven by digital transformation and regulatory compliance. The UK leads with a projected $1.10 billion valuation by 2032. Tech adoption, open banking, and key players like Temenos and Finastra fortify this landscape.

Dublin, July 17, 2025 (GLOBE NEWSWIRE) -- The "Europe Core Banking Software Market Size, Share & Industry Analysis Report By Deployment (Cloud and On-premise), By End Use, By Component, By Country and Growth Forecast, 2025-2032" has been added to ResearchAndMarkets.com's offering.

The Europe Core Banking Software Market is anticipated to achieve growth at a CAGR of 9.6% from 2025 to 2032. Leading the charge, the UK dominated the market in 2024 and is projected to sustain its leadership position through 2032, reaching a market value of $1.10 billion and growing at a 7.8% CAGR. Germany is expected to show a CAGR of 8.5% during the forecast period, while France is slated for a robust 10.6% growth rate.

As financial institutions increasingly pivot towards personalized banking, technologies such as advanced analytics, artificial intelligence, and machine learning are becoming essential components of core banking systems. These technological advancements grant banks actionable insights, optimize decision-making, and improve customer engagement. Concurrently, regulatory compliance, data security, and risk management have driven the need for software with strong governance frameworks, real-time compliance, and secure data handling capabilities.

Institutions spanning retail and commercial banks to credit unions are gravitating toward solutions that promise modularity, scalability, and adaptability to future needs. This transition has been facilitated by a shift from monolithic to microservices-based architectures, which allows for accelerated development cycles and seamless tech integration. Vendors are dedicating significant resources to research and development, focusing on low-code platforms, containerized deployment, and AI-powered automation to streamline implementation and minimize operational costs.

The European market is experiencing a paradigm shift due to regulatory progress, digital sovereignty, and the necessity for modernization among traditional financial entities. Notably, the European Union's PSD2 directive has expedited open banking adoption. Banks in regions like Germany, France, and the Nordics are moving towards microservices-based systems to enhance agility and diminish reliance on monolithic structures. Established vendors such as T24 Temenos, Finastra, and Sopra Banking Software are adjusting their products to meet regional regulations, while disruptive entrants like Thought Machine and Solarisbank are leveraging fully cloud-native platforms.

The strategic push for sovereign cloud and localized data hosting is growing in light of geopolitical changes and stringent data protection laws such as GDPR. This unique confluence of regulatory adherence, digital innovation, and sustainable transformation is propelling Europe's core banking software market forward.

Key Customer Criteria - Europe Core Banking Software Market

• Scalability and Performance
• Modularity and Flexibility
• Cloud-Readiness and Deployment Flexibility
• API Ecosystem and Open Banking Integration
• Security, Privacy, and Regulatory Compliance
• Total Cost of Ownership (TCO)
• Speed of Implementation and Ease of Upgrades
• User Experience (UX) for Staff and Customers
• Vendor Reputation, Industry Expertise, and References
• Localization, Support, and Post-Sales Service

Key Company Profiles

• Capgemini SE
• Finastra Group Holdings Limited (Vista Equity Partners)
• Temenos AG
• HCL Technologies Ltd.
• Oracle Corporation
• Fiserv, Inc.
• Infosys Limited
• SAP SE
• Tata Consultancy Services Ltd.
• Jack Henry & Associates, Inc.

Market Report Segmentation:

By Deployment:

• Cloud
• On-premise

By End Use:

• Banks
• Financial Institutions
• Other End Use

By Component:

• Solution
• Deposits
• Loans
• Enterprise Customer Solutions
• Other Solution Type
• Service
• Professional Service
• Managed Service

By Country:

• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe

For more information about this report visit

About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.

CONTACT: CONTACT: Laura Wood,Senior Press Manager ... For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900

MENAFN17072025004107003653ID1109814657