Core banking can be defined as a back-end system that processes banking transactions across the various branches of a bank. The system includes deposit, loan, and credit processing. The essential core banking services include floating new accounts, servicing loans, calculating interest, processing deposits and withdrawals, and customer relationship management activities.
The Eastern Europe Core Banking Market is projected to grow at a CAGR of around 16.5% during the forecast period, i.e., 2023-28. Eastern Europe banking and financial institutions have increased the adoption of the core banking system owing to enhancing agility and increasing operational flexibility. The core banking structure in Eastern Europe no longer focuses on competing on their ability to provide the functional needs of the bank. Instead, it looks to differentiate based on the integration strength and flexibility of the underlying architecture.
Therefore, the changing functionality in a commodity would increase the market growth of Eastern Europe core banking through 2028. Moreover, the core banking system helps reduce costs, simplifies the IT landscape, and ensures the shredding of operational costs. Besides, the core banking system has also pushed geographical boundaries by centralizing and integrating global operations.
|Study Period||Historical Data: 2018-21|
|Base Year: 2022|
|Forecast Period: 2023-28|
|Country Covered||Hungary, Romania, Poland, Czech Republic, Serbia, Bulgaria, Others|
|Key Companies Profiled||FIS, DXC Technology, TAS group, Finastra, Sopra, Temenos, Oracle, Asseco, Diasoft, Avaloq, Others|
|Unit Denominations||USD Million/Billion|
Moreover, in 2021, the banking sector in Bulgaria showed a sign of recovery from the COVID-19 pandemic. According to The European Banking Federation, the substantially lower impairment expenses and accrued provisions, the accelerated lending and business activity, the low-interest rates, and the management of the credit portfolio quality positively impacted the financial outcome of the banking sector. What has further influenced the industry is the established close cooperation between the BNB & the ECB, incorporation of the Bulgarian lev in the exchange rate mechanism (ERM II), Bulgaria’s commitment to adopt the single European currency.
Further, amid a portfolio of disparate point solutions within the core banking ecosystem, many banks have planned to simplify or simplified their IT landscapes through a new core banking system. Banks and Financial Institutions have undertaken core overhaul to support evolving digital banking capabilities. The state owned regional banks in the region are suffering from the digital gap due to their outdated and internally developed systems. These institutions are increasingly leapfrogging to the latest digital technology, thereby upgrading existing CBS.