Eastern Europe Core Banking Market Research Report: Forecast (2025-2030)

Market Definition

Core banking can be defined as a bank-end system that processes banking tractions 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.

Market Insights & Analysis: Eastern Europe Core Banking Market (2025-30):

The Eastern Europe Core Banking Market size was valued at around USD 470 Million in 2024 and is projected to reach USD 952.82 Million by 2030. Along with this, the market is estimated to grow at a CAGR of around 12.50% during the forecast period, i.e., 2025-30.

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.

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Therefore, the changing functionality in a commodity would increase the market growth of Eastern Europe core banking through 2030. 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.

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 The state owned regional banks in the region are suffering from the digital gap due to their outdated and internally developed systems.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.

Eastern Europe Core Banking Market Driver:

Rising Inclination Towards Block Chain Technology – The major banks in Eastern Europe are trying to enhance the end-to-end customer experience by gradually adopting advanced technologies such as Block chain to offer digital products in the market. These strategic initiatives are estimated to boost the core banking solutions market growth. Moreover, the increasing demand for the upgradation and replacement of the legacy system is also influencing the core banking industry's ascension.

Eastern Europe Core Banking Market Opportunity:

Growing Adoption of Cloud-Native Core Banking Platforms – One of the most promising opportunities in the Eastern Europe core banking market is the rapid shift toward cloud-native core banking platforms. As banks and financial institutions across the region face mounting pressure to modernize legacy systems, cloud deployment is emerging as the preferred solution for achieving operational flexibility, cost efficiency, and scalability. Cloud-native infrastructure enables seamless integration of digital banking services, real-time payments, and advanced analytics, positioning banks to better serve tech-savvy customers and respond swiftly to regulatory changes. This transformation is particularly pronounced in countries like Hungary and Poland, where the need to reduce operational costs and enhance client accessibility is driving large-scale investments in cloud solutions. The accelerating adoption of cloud-based core banking is not only streamlining IT landscapes but also fostering innovation, opening the door for new digital products and cross-border financial services that can propel the region’s banking sector into a new era of growth and competitiveness.

Eastern Europe Core Banking Market Challenge:

Rising Burden of Legacy Technology – A leading challenge restricting the growth of the Eastern Europe core banking market is the persistent burden of legacy technology. Many financial institutions in the region still operate on outdated core systems originally built during the transition to market economies, which now struggle to support the demands of a cloud-first, real-time, and AI-driven banking environment. These legacy platforms limit agility, increase operational costs, and hinder the rollout of innovative digital services that today’s tech-savvy customers expect. As a result, banks face mounting pressure to modernize their core infrastructure, but the complexity, cost, and risk associated with overhauling entrenched systems often slow progress. This technological inertia not only restricts the ability to compete with digital-native challengers but also impedes compliance with evolving regulatory requirements and the integration of advanced technologies, ultimately curbing the sector’s full growth potential.

Eastern Europe Core Banking Market Trend:

Rapid Expansion of Digital Banking Capabilities and Real-time Payment Solutions – A leading emerging trend reshaping the exponential growth of the Eastern Europe core banking market is the rapid expansion of digital banking capabilities and real-time payment solutions. As banks in the region prioritize digital transformation to attract and retain a broader customer base, including both retail clients and SMEs, they are investing heavily in advanced core banking software and IT upgrades to enable seamless, instant transactions and personalized digital experiences. This trend is particularly evident in countries like Hungary, Bulgaria, and Poland, where the surge in electronic and real-time payments is driving demand for integrated, flexible, and scalable core banking systems. The adoption of these technologies not only reduces operational costs and streamlines IT landscapes but also enhances customer satisfaction and opens new revenue streams for financial institutions. Consequently, the commitment to digital banking and instant payments is fundamentally altering competitive dynamics and fueling robust market expansion across Eastern Europe.

Eastern Europe Core Banking Market (2025-30): Segmentation Analysis

The Eastern Europe Core Banking Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2025–2030 at the regional level. Based on the analysis, the market has been further classified as:

Based on Component:

• Service
  • Managed Service
  • Professional Service
• Software

Among others, Software captured the highest market share in the historical period. It is primarily because core banking software enables banks to analyze the data and create strategies to capitalize banks while generating opportunities for the customers and, subsequently, the market. In addition, it also drives down operational costs while ensuring backup, up-gradation of data, and maintaining flexibility in operations. Thus, software adoption in the core banking system is projected to expand and positively influence the market share of Eastern Europe between 2025-30.

Based on Deployment:

• On-Premise
• Cloud

Of them all, Cloud Segment is projected to grow at the highest CAGR during 2025-30. The market shares of the cloud segment are escalating owing to factors such as shredding operational cost, easy installation, accessibility, and operational flexibility. Also, the migration from traditional banking to cloud banking is increasing at a very sharp rate to provide a better banking experience to clients, increased operational flexibility, and optimization of cross-border operations. However, due to the cost barrier, the financial institutions in the region, particularly in Hungary, are more inclined to COTS packages, primarily cloud-based. Therefore, cloud deployment is expanding in Eastern Europe, accelerating market growth in the coming years.

Eastern Europe Core Banking Market (2025-30): Regional Projection

Geographically, the Eastern Europe Core Banking Market expands across:

• Hungary
• Romania
• Poland
• Czech Republic
• Serbia
• Bulgaria
• Others

On the geographical front, Hungary's core banking market majorly supports the banking and financial system of Eastern Europe owing to the various factors encouraging market growth. The changing banking application of larger banks focuses on renovating their core banking components, such as cloud-native infrastructure providing comprehensive capabilities that would create value for the bank. In addition, the emerging need to reduce operational costs and increase flexibility and accessibility for clients through cloud deployment is gaining ground in the country.

Eastern Europe Core Banking Industry Recent Development:

• 2025: Temenos today announced that CEC Bank, the third largest bank in Romania, has selected Temenos to Modernize its retail and corporate core banking systems.

Gain a Competitive Edge with Our Eastern Europe Core Banking Market Report

• Eastern Europe Core Banking Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• Eastern Europe Core Banking Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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