State Bank of India was the leading Indian public sector bank based on market capitalization, with over seven trillion Indian rupees as of May 2025. Bank of Baroda followed, with PNB ranking third that year. State Bank of India The Reserve Bank of India acquired the majority of shares from the Imperial Bank of India in 1955 which led to the formation of State Bank of India. Currently, the Indian multinational public sector bank is one of the most valuable brands in the country. However, despite its large customer base, higher deposits, and net profit, the market capitalization of the SBI was much lower than of the leading private sector banks that year. This could be because of a reduced consistency and predictability in the performance of the bank from an investor point of view. SBI’s green finance initiative State Bank of India seemed to have taken various initiatives in an effort to reduce its environmental impact on the planet. The bank supports the Indian government in recent years to provide funds to viable renewable energy projects. Through the introduction of the digital banking application, YONO, and digitization of registers, the use of paper was reduced by a large fraction. The bank’s decreased interest rate and a longer-term for Green Car loans give a boost to the clean mobility movement.

The Asia-Pacific neo-banking market is experiencing robust growth, driven by the increasing adoption of mobile banking, fintech innovations, and a burgeoning young population comfortable with digital financial services. The market's Compound Annual Growth Rate (CAGR) of 8.0% from 2019 to 2024 suggests a significant expansion, projected to continue through 2033. Key drivers include the region's high smartphone penetration, expanding internet access, and a preference for convenient, digitally-native financial solutions. This is particularly evident in countries like China and India, which boast massive populations and rapidly developing digital economies. The market segmentation highlights the diverse applications of neo-banking, with a strong focus on mobile banking, payments and transfers, and loans. Business and personal accounts both contribute significantly to the overall market value. While regulatory hurdles and security concerns pose some restraints, the overall market trajectory remains positive, fueled by continuous technological advancements and the increasing demand for accessible, personalized financial services. The competitive landscape is dynamic, with a mix of established players and innovative startups vying for market share. Growth will likely be concentrated in high-growth economies, with China and India expected to remain dominant players in the coming years, followed by other significant markets like Singapore, Australia, and Hong Kong. This growth is fueled by several factors including the increasing preference for personalized financial services catering to the unique needs of diverse customer segments. The integration of AI and machine learning in neo-banking platforms further enhances the customer experience, driving adoption. Moreover, strategic partnerships between neo-banks and established financial institutions are fostering innovation and expansion. This collaborative approach helps neo-banks overcome challenges like regulatory compliance and infrastructure limitations while benefiting from the established networks and customer base of traditional financial institutions. However, the market also faces challenges such as maintaining robust cybersecurity measures, addressing data privacy concerns, and navigating evolving regulatory landscapes in different countries. The continued evolution of the technological landscape and the emergence of innovative solutions such as embedded finance will significantly shape the future of the Asia-Pacific neo-banking market. This comprehensive report provides a detailed analysis of the rapidly evolving Asia-Pacific neo banking market, covering the period 2019-2033. With a base year of 2025 and an estimated year of 2025, this report offers invaluable insights into market size (in millions), growth drivers, challenges, and future trends. This study is crucial for investors, entrepreneurs, and established financial institutions seeking to understand and capitalize on opportunities within this dynamic sector. High-search-volume keywords like "Asia-Pacific neo banking market size," "digital banking Asia," "mobile banking trends," and "virtual banking growth" are integrated throughout for optimal search engine visibility. Recent developments include: In April 2022, WeLab Bank has become the first virtual bank in Hong Kong to be granted permission to provide digital wealth advising services. The Bank soft-launched its intelligent wealth solution GoWealth Digital Wealth Advisory (GoWealth) for selected customers after receiving Type 1 (Dealing in securities) and Type 4 (Advising on securities) licenses from the Hong Kong Securities and Futures Commission (HKSFC)., In December 2021, Kakao Bank announced the signing of an MOU with Kyobo Life Insurance, Kyobo Bookstore, and Kyobo Securities for data cooperation and partnerships with other financial platform firms. Financial product planning and development, as well as cooperative marketing, will arise from a business relationship with Kyobo Life Insurance and Kyobo Securities.. Notable trends are: Number of Customers for Neo Banking is Raising Significantly in the Region.

In financial year 2024, Indian public sector banks recorded assets worth around 1.68 trillion U.S. dollars. This was a decrease compared to the previous year. Public sector bank assets accounted for the largest share in India's banking market.

In financial year 2024, private sector banks in India recorded assets worth over 1.2 trillion U.S. dollars. This was an increase compared to over one trillion dollars in the previous year.

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Core Banking Solutions Market Size 2025-2029

The core banking solutions market size is forecast to increase by USD 25.04 billion, at a CAGR of 19% between 2024 and 2029.

The market is witnessing significant advancements driven by the integration of artificial intelligence (AI) and machine learning (ML) technologies to enhance customer experience. Banks are increasingly investing in these solutions to personalize services, streamline operations, and improve overall efficiency. However, the market is not without challenges. Companies seeking to capitalize on market opportunities and navigate challenges effectively should prioritize advanced security features and customer-centric solutions.
As the financial industry continues to digitalize, core banking solutions must adapt to maintain security while enabling seamless and innovative services. Concerns regarding data security and privacy threats within the banking system persist, necessitating robust cybersecurity measures. Big data analytics and omnichannel banking experiences are key differentiators, as financial institutions strive to offer superior service, affordability, and cutting-edge technologies.

What will be the Size of the Core Banking Solutions Market during the forecast period?

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The market continues to evolve, driven by technological advancements and shifting customer expectations. Application programming interfaces (APIs) and open banking APIs are transforming the way financial institutions connect and share data, enabling more efficient transaction processing and real-time payments. Data analytics plays a crucial role in gaining insights from this vast amount of data, helping institutions make informed decisions and improve customer experience. The software development lifecycle is becoming more agile, with cloud-based banking and microservices architecture allowing for faster deployment and scalability. For instance, a large European bank reported a 30% increase in online sales after implementing a user-friendly mobile banking platform.
Industry growth is expected to reach double digits, with business intelligence and customer relationship management being key areas of investment. Regulatory reporting, database management, and risk management systems are essential components of a robust core banking solution. Compliance regulations, such as KYC/AML, customer onboarding, and audit trails, are being addressed through advanced technology solutions. Data security protocols and API security are becoming increasingly important, as financial institutions strive to protect sensitive customer information. Loan origination systems, financial reporting, and payment gateway integration are other critical functions that are being optimized through digital banking transformation. The shift towards digital banking is accelerating, with internet banking and fraud detection systems becoming standard offerings.
Service-oriented architecture and credit scoring models are being integrated to provide personalized offerings and improve risk management. Overall, the market is characterized by continuous innovation and adaptation to meet the evolving needs of financial institutions and their customers. Financial analysis and business intelligence (BI) provide valuable insights, while digital banking and blockchain technology ensure secure and efficient transactions.

How is this Core Banking Solutions Industry segmented?

The core banking solutions industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Deployment

  On-premises
  Cloud-based


End-user

  Large enterprises
  SMEs


Type

  Retail banking core
  Universal banking core
  Corporate banking core


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  APAC

    China
    India
    Japan
    South Korea


  Rest of World (ROW)

By Deployment Insights

The On-premises segment is estimated to witness significant growth during the forecast period. Core banking solutions have gained significant traction in the financial sector, with an increasing number of banks embracing advanced technologies to streamline their operations and enhance customer experience. According to recent reports, the adoption of core banking solutions among financial institutions has risen by 21%, allowing for more efficient transaction processing and real-time payments. Furthermore, the integration of application programming interfaces (APIs) and open banking APIs has facilitated seamless data exchange between various banking applications, enabling business intelligence and data analytics. The software development lifecycle (SDLC) and service-oriented archite

India recorded a gross non-performing asset (GNPA) to total advances' ratio of over close to three percent in fiscal year 2024. The ratio was estimated was expected to see a further decrease in bad loans in the next fiscal year, indicating a balanced expansion of credit and debit among scheduled commercial banks for those years.

Kubernetes Policy as Code for Banks Market Outlook

According to our latest research, the Kubernetes Policy as Code for Banks market size was valued at $412 million in 2024 and is projected to reach $1.29 billion by 2033, expanding at a robust CAGR of 13.5% during 2024–2033. The primary driver behind this substantial growth is the increasing need for automated policy management and compliance enforcement in the banking sector. As banks continue their digital transformation journeys, Kubernetes Policy as Code solutions have emerged as essential tools for automating security, compliance, and resource management across complex, containerized environments. These tools enable banks to define, manage, and enforce operational policies programmatically, ensuring consistency, auditability, and scalability in highly regulated financial environments.

Regional Outlook

North America holds the largest share of the global Kubernetes Policy as Code for Banks market, accounting for approximately 40% of the total market value in 2024. This region’s dominance is attributed to its mature banking infrastructure, early adoption of cloud-native technologies, and stringent regulatory frameworks such as the Gramm-Leach-Bliley Act and the Federal Financial Institutions Examination Council (FFIEC) guidelines. Leading US and Canadian banks have been at the forefront of integrating Kubernetes Policy as Code solutions to automate policy enforcement and streamline compliance workflows, driving significant demand for both software and services. The presence of major technology vendors and a vibrant ecosystem of managed service providers further accelerates market maturity and innovation in North America.

The Asia Pacific region is projected to be the fastest-growing market, with a remarkable CAGR of 16.2% through 2033. This rapid expansion is fueled by the accelerated digital transformation of banks in countries like China, India, Singapore, and Australia. The proliferation of fintech startups and regulatory initiatives such as the Reserve Bank of India’s digital banking guidelines and the Monetary Authority of Singapore’s technology risk management framework are compelling banks to adopt advanced policy automation tools. Substantial investments in cloud infrastructure, coupled with partnerships between global tech vendors and regional banks, are fostering a fertile environment for the widespread deployment of Kubernetes Policy as Code solutions.

Emerging economies in Latin America and the Middle East & Africa are also witnessing increasing adoption of Kubernetes Policy as Code, albeit at a more gradual pace. Banks in these regions face unique challenges such as limited local expertise in cloud-native technologies, inconsistent regulatory enforcement, and budget constraints. However, as digital banking services gain momentum and cross-border compliance requirements intensify, there is growing localized demand for policy automation tools that can adapt to diverse regulatory landscapes. Regional governments and banking associations are beginning to recognize the strategic importance of secure, automated policy management, which is expected to drive future adoption despite existing barriers.

Report Scope

The Pradhan Mantri Jan-Dhan Yojana distributed over 58 billion Indian rupees in deposits to beneficiaries through major private sector banks as of August 2023 in India. HDFC Bank Ltd had the highest deposits of over 20 billion Indian rupees, even though ICICI Bank Ltd had the highest number of beneficiaries during the measured time period.

The Pradhan Mantri Jan-Dhan Yojana was a financial inclusion program which was applicable citizens between 18 and 65 years old. It aimed to expand and make affordable access to financial services such as bank accounts, remittances, credit, insurance and pensions. Launched in August 2014, the scheme was criticized by the opposition as an effort to please voters that has created unnecessary work-burden on public-sector banks. It claimed that the poor deserved food more than bank accounts and financial security.

The IT solutions market for the banking industry is experiencing robust growth, driven by increasing digitalization, the need for enhanced security, and the rising adoption of cloud-based solutions. The market, estimated at $150 billion in 2025, is projected to grow at a Compound Annual Growth Rate (CAGR) of 12% from 2025 to 2033. This expansion is fueled by several key factors. Firstly, banks are heavily investing in upgrading their core banking systems to improve operational efficiency, customer experience, and compliance with evolving regulatory standards. Secondly, the increasing prevalence of fintech companies and the rise of open banking are forcing traditional banks to adopt innovative IT solutions to remain competitive. The demand for advanced analytics, artificial intelligence (AI), and machine learning (ML) solutions for fraud detection, risk management, and personalized customer service is also contributing significantly to market growth. Finally, the ongoing shift towards cloud computing is enabling banks to access scalable and cost-effective IT infrastructure, fostering further adoption. Segmentation analysis reveals significant opportunities across various solution types. Channel solutions, offering streamlined communication and transaction processing, hold a substantial market share, followed by business solutions focused on enhancing operational efficiency and management solutions that optimize overall banking operations. Geographically, North America and Europe currently dominate the market, but the Asia-Pacific region is poised for significant growth, driven by rapid digital adoption and expanding banking infrastructure in developing economies such as India and China. While challenges remain, including concerns around data security and the complexity of integrating new technologies, the overall outlook for the IT solutions market in the banking sector remains highly positive, promising substantial growth in the coming years.

In financial year 2024, the value of foreign exchange reserves in India stood at around 646 billion U.S. dollars. This was a significant increase from the previous year. In fiscal year 2023, the value of foreign exchange reserve stood at around 578 billion dollars.

The credit to deposit ratio in India for financial year 2023 stood at over 70 percent, an increase from previous year. The credit to deposit ratio is an important first indication to gauge a bank's health, as it shows how much of a bank's core funds are being used for lending. It is an indicator of a bank's liquidity. A very high ratio indicates pressure on resources as well as capital adequacy issues; while a very low ratio can mean that the bank is not using its available resources optimally.

In financial year 2022, almost 1.24 trillion Indian rupees were sanctioned by public sector banks including regional rural banks under the Pradhan Mantri Mudra Yojana (PMMY) scheme. This was a higher amount than during the previous year.

PMMY was initiated in 2015 and provides loans up to one million Indian rupees to small and micro enterprises (MSE). Different kinds of banks are involved in providing these loans.

In financial year 2021, over 40 million accounts under the Pradhan Mantri Mudra Yojana (PMMY) scheme were sanctioned loans in the Shishu category. The loans sanctioned under this category amounted to over one trillion Indian rupees.

PMMY was initiated in 2015 and provides loans up to one million Indian rupees to small and micro enterprises (MSE). Different kinds of banks are involved in providing these loans.

Working Capital Finance Market Outlook

As per our latest research, the global working capital finance market size reached USD 5.32 trillion in 2024, driven by robust trade activity and the ongoing digital transformation in financial services. The market is experiencing a strong growth trajectory, with a CAGR of 6.8% projected from 2025 to 2033. By the end of 2033, the working capital finance market is expected to reach a value of USD 9.89 trillion. This impressive growth is primarily attributed to increasing demand for flexible liquidity solutions among businesses, the rise of fintech innovations, and expanded access to financial services for small and medium-sized enterprises (SMEs) globally.

The working capital finance market is experiencing significant growth due to several key factors. A primary driver is the rising need for liquidity among businesses of all sizes, particularly SMEs, which often face challenges in maintaining cash flow during periods of rapid expansion or economic uncertainty. As global supply chains become increasingly complex, businesses are seeking more sophisticated short-term financing solutions to optimize inventory levels, manage receivables, and ensure uninterrupted operations. The proliferation of digital platforms and fintech solutions has further democratized access to working capital finance, making it easier for even small enterprises to secure funding quickly and efficiently. Additionally, the growing trend of globalization and cross-border trade has heightened the demand for tailored financial products such as trade credit and letters of credit, which help mitigate risks and bridge payment cycles in international transactions.

Another significant growth factor for the working capital finance market is the increasing involvement of non-banking financial institutions (NBFIs) and alternative lenders. These entities are leveraging advanced analytics, artificial intelligence, and blockchain technology to offer more customized, flexible, and faster financing options compared to traditional banks. This shift is particularly evident in emerging markets, where access to conventional banking services is often limited. NBFIs are filling a crucial gap by providing innovative solutions such as invoice discounting, factoring, and supply chain finance, which are tailored to the unique needs of local businesses. Furthermore, regulatory reforms in many regions have encouraged greater competition and innovation in the financial sector, further stimulating market growth.

The ongoing digital transformation within the financial services industry is also a key catalyst for expansion in the working capital finance market. Financial institutions are increasingly adopting cloud-based platforms, automation, and data-driven decision-making tools to streamline their lending processes and enhance risk assessment capabilities. This technological evolution not only reduces operational costs but also improves the speed and accuracy of credit approvals, making working capital finance more accessible and attractive to a broader range of enterprises. Moreover, the integration of environmental, social, and governance (ESG) criteria into lending decisions is emerging as a differentiator, with many providers developing green finance products that support sustainable business practices. These trends are collectively contributing to a dynamic and rapidly evolving market landscape.

Regionally, Asia Pacific continues to be the dominant force in the working capital finance market, accounting for the largest share in 2024. The region's leadership is underpinned by the rapid industrialization of countries like China and India, the expansion of manufacturing and export-oriented sectors, and the proliferation of digital banking services. North America and Europe are also significant markets, driven by mature financial ecosystems and high adoption rates of technology-driven financing solutions. Meanwhile, Latin America and the Middle East & Africa are witnessing accelerated growth, supported by regulatory reforms, economic diversification efforts, and increased investment in digital infrastructure. Each region presents unique opportunities and challenges, shaping the overall trajectory of the global working capital finance market.

Type Analysis

The working capital finance market is segmented by type into trade credit, bank loans, factoring, letters of credit, and others. Trade credit remains a fundamental component, enabling bu

The India Auto Loan Market Report is Segmented by Loan Provider Type (Non-Captive Banks, Non-Banking Financial Companies, OEM-Captive Finance Arms, and More), Vehicle Type (Passenger Vehicles, Commercial Vehicles), Ownership (New Vehicles, Used Vehicles), Distribution Channel (Dealership Point-Of-Sale, Online Direct Lending, and More), and Geography (India). The Market Forecasts are Provided in Terms of Value (USD).

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Trade Finance Market Size 2025-2029

The trade finance market size is forecast to increase by USD 18.6 billion, at a CAGR of 5.7% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing number of exports and the incorporation of advanced technology into trade finance solutions. This trend is expected to continue as global trade volumes increase and businesses seek more efficient and secure methods for financing international transactions. In the realm of business and finance, the Banking, Financial Services, and Insurance (BFSI) sector has experienced significant advancements in technology, particularly in trade financing. Advanced technology, including fintech solutions, is also transforming trade finance, providing more efficient funding options, hedging alternatives, and fraud prevention measures. However, the market is not without challenges. Protectionist policies and trade wars pose significant obstacles, creating uncertainty and potential disruptions in global trade flows. As a result, trade finance providers must navigate these geopolitical risks while also adapting to technological advancements and evolving customer expectations.
Companies seeking to capitalize on market opportunities and navigate challenges effectively should focus on leveraging technology to streamline processes, enhance security, and provide customized solutions for clients. Additionally, building strong relationships with clients and maintaining a deep understanding of regulatory and geopolitical risks will be crucial for success in this dynamic market.

What will be the Size of the Trade Finance Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The market continues to evolve, driven by the dynamic nature of global trade and the increasing adoption of digital technologies. Trade finance instruments and services play a crucial role in facilitating international business transactions, with applications spanning various sectors. Compliance with regulations and adherence to trade finance frameworks are essential components of this ecosystem. Digital trade finance solutions, such as supply chain finance and invoice discounting, are gaining traction, streamlining processes and enhancing efficiency. Trade finance advisory and analytics offer valuable insights, enabling informed decision-making. Export credit insurance and export finance provide risk mitigation and financing options for exporters.

Trade finance institutions, including banks and non-bank financial institutions, are leveraging technology to offer innovative products and services. Trade finance platforms and models are evolving to address the challenges of complex global supply chains and changing market conditions. The trade finance industry remains focused on adapting to these trends and continuously improving its offerings to meet the needs of businesses. The ongoing unfolding of market activities and evolving patterns in the market present numerous opportunities for growth and innovation. Trade finance strategies that effectively address these dynamics and leverage technology will be key to success in this ever-changing landscape.

How is this Trade Finance Industry segmented?

The trade finance industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Traditional trade finance
  Supply chain finance
  Structured trade finance


End-user

  Importers and exporters
  Banks and financiers
  Insurers and export credit agencies


Product Type

  Letters of credit
  Supply chain finance
  Trade credit insurance
  Documentary collections
  Others


Business Segment

  Domestic trade finance
  International trade finance


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    The Netherlands
    UK


  APAC

    China
    India
    Japan
    South Korea


  Rest of World (ROW)

By Type Insights

The traditional trade finance segment is estimated to witness significant growth during the forecast period.

Trade finance is a vital component of international business, providing risk management tools and facilitating trade payments through various instruments such as commercial letters of credit, documentary collections, open account processing, purchase order management, and document preparation. JPMorgan Chase and Co. (JPMorgan) are among the institutions offering these traditional trade finance solutions via web-based trade transaction management platforms. These platforms enable clients to manage their trade activities from purchase orders to payments, connecting sellers and buyers to the company ne

In December 2024, the Yes Bank Ltd. was the leading beneficiary bank for UPI transactions in India with around 6.6 billion transactions. Axis Bank Ltd. followed with more than 1.7 billion transactions. Beneficiary bank refers to the bank of the account holder who is receiving money. Unified Payments Interface (UPI) is a product of the National Payments Corporation of India (NPCI) and was launched in 2016. It allows users of payment service providers like PhonePe or GooglePay to use NPCI as the switch to connect with banks and transfer money. It is more user-friendly than older transaction modes such as IMPS.

There was a gradual growth in disbursement of loans through digital channels in India from 1.43 percent in the financial year 2017 to around six percent in the financial year 2021. However, the country is still at a nascent stage in terms of digital lending.

United States banks that were looking into APIs to help develop BaaS, or banking-as-a-service, largely did so to leverage them for customized workflows. This is according to a survey held among bank representatives in the country, when asked about API strategies followed and their primary goals within their organization. APIs have increasingly become a trend topic within the finance industry since 2022, as they may enable a smoother user experience (i.e., embedded finance) or could be a way to help smoothen cross-border payments. The source states the focus on third-party integration was “unsurprising”, as – in their observation – most banks rely on third parties to provide digital technologies. There is no indication what is meant with “none of the above”, although the source believes it may be an indicator of how similar terms like BaaS, embedded finance or Open Banking are. When asked about BaaS specifically, roughly a third of all the U.S. banks found BaaS an opportunity to streamline operations – more so than a potential way to create new revenue streams.

As of March 2025, the Bharat Interface for Money (BHIM) Unified Payments Interface (UPI) was the most used mode of digital payments in India, with a transaction volume of around 185 billion transactions. National Automated Clearing House (NACH) followed with around 17 billion transactions. The majority of the transactions across sectors such as online retail, food delivery, mobility, and e-health were made by UPI in the financial year 2023. What is BHIM UPI? BHIM is a mobile payment app developed by the National Payments Corporation of India (NPCI) based on UPI. It was launched in 2016, and it facilitates electronic payments directly through banks and promotes cashless payments. It allows users to send or receive payments using only a mobile number or UPI ID. As of June 2023, more than 200 Indian banks had partnered with BHIM. Payment methods: a decade of transformation    The last decade has witnessed a significant transformation in the payments landscape in India. In the early decade, methods such as cash and cheques were prevalent. However, with the advent of smartphones and internet connectivity, digital payment methods started gaining traction. The government’s ‘Digital India’ campaign further propelled this shift, aiming to create a ‘digitally empowered’ economy that is 'Faceless, Paperless, Cashless’. Several digital payment methods emerged in this decade. Credit cards and debit cards became widely popular due to their convenience, portability, and security features. The introduction of UPI served as a game changer in the payments industry by facilitating instant money transfers between any two bank accounts via a mobile platform.