Can New Technology Providers Upend the Core Banking Market?
Back in 2013 four core banking providers dominated the U.S. market owning a 96 percent share, that market share is now 76 percent as new players with fresh technology have entered the market. Banks and credit unions rely on core technology to process all deposits, payments, loans, most bank transactions and customer data. With the advent of new technology there has been a growing group of companies looking to provide banks and credit unions with better options. Just in the past few weeks there were big investment rounds made into Alkami for $55mn and Synapse for $33mn. We have not yet reached the point where core providers are being completely replaced, especially as they are also innovating in an attempt to stay ahead. Losing 20 percent market share in 5 years is something they need to grapple with. Source.