Market Structure of Core Banking Services Providers

Alcazar, Julian; Baird, Sam; Cronenweth, Emma; Hayashi, Fumiko; Isaacson, Ken

Briefing

Market Structure of Core Banking Services Providers

Abstract: Three core providers dominate the market for core banking systems for depository institutions (DIs). These providers also have a large presence in vertically related markets, such as card network services; payment processing services for DIs, merchants, or governments; and banking-as-a-service. This market structure may make it difficult for DIs to switch their core providers, affecting their ability to offer new services and stay competitive.

Keywords: core providers; Depository institutions; banking sector;