Market Overview
The Global Account Reconciliation Software Market is valued at US$ 72826.0 Million in 2019 and is estimated to grow at a CAGR of 8.3% during the forecast period 2020-2027. Growing adoption of automated banking solutions is boosting the market growth, owing to its high quality and reduced reconciliation. Time is supplementing the development of this market. Growing standardized activities in banks is the major factor driving the global account reconciliation software market. It is owing to factors such as this software which help in reducing risk, improving quality and save time through automated operations in accounting is known as account reconciliation software. Additionally, launch of new versions of cloud and on-premise platforms to support reconciliation software is propelling the global market growth. For instance, in 2019, SS&C Technologies developed a middle- and back-office platform for accounting and reconciliation activities that uses machine learning to assist with trade breaks and other errors. On-Premise accounted for the largest market value share of 59.95% in 2019 global account reconciliation software market. Most of the banks and enterprises are migrating from On-Premises Financial Close Management to Account Reconciliation Cloud. Many companies are considering the benefits of moving to the cloud with their EPM/BI technologies, including Account Reconciliation tools. Though less than 35% of companies have adopted cloud technologies thus far, Hackett’s research indicates that cloud adoption will more than double over the next two years. Increased concern among the banking enterprises regarding the data security features of reconciliation software is expected to propel the cloud based segment of the global market. Banks application accounted for a value share of 43.44% in 2019 in the global account reconciliation software market. With 85% of banks citing the implementation of digital technology in their banking operations, it has become a business priority in 2019. Investment in technology to drive efficiency, manage evolving risks and benefit from growth opportunities will foster the growth of reconciliation software during the forecast period in the banking sector. North America holds 36.39% of market share of the total Account Reconciliation Software market in 2019, and is expected to be 36.87% by 2027. North America Account Reconciliation Software market is growing due to high public awareness, intense competition and continuously growing transaction volume in the region. Account Reconciliation Software improves the quality and accuracy of financial data and reduces errors and inaccuracies. This saves a considerable amount of time and allows highly skilled accountants to focus on more difficult tasks, like analysis, risk mitigation, and exception handling.
Market Dynamics
Drivers
- Increasing requirement for standardized activities in banks
- Growing implementation of customer-centric banking solutions
Restraints
- Data security and private concerns & high implementation cost
Increasing Requirement For Standardized Activities In Bank
Growing standardized activities in banks is the major factor driving the global account reconciliation software market. It is owing to factors such as this software which help in reducing risk, improving quality and save time through automated operations in accounting is known as account reconciliation software. According to a survey by EY, up to 59% of a financial department’s resources are spent on managing transaction-intensive processes, and around 95% of this effort is wasted on transactions that already match, rather than problem entries that actually require attention. More efficient operations, replacing multiple point solutions and eliminating silos with a single strategic reconciliations platform. Additionally, launch of new versions of cloud and on-premise platforms to support reconciliation software is propelling the global market growth. In September 2019, Oracle extended Hyperion On-Premises support for the upcoming version 11.2 scheduled to be released in 2019 to 2030. Similarly, in August 2015, Accenture unveiled the latest version of its Accenture Foundation Platform for Oracle (AFPO). AFPO is a pre-built, pre-tested Oracle Cloud Platform and on-premise technology architecture that offers accelerated implementation and strategic guidance to help improve application quality, lower IT cost, and speed deployment.
In 2019, SS&C Technologies developed a middle- and back-office platform for accounting and reconciliation activities that uses machine learning to assist with trade breaks and other errors.
Geographical Analysis
North America Account Reconciliation Software market was valued at $**** million in 2019 and is estimated to grow at a CAGR of 8.5% over the forecast period to reach $**** million by 2027. North America holds 36.39% of market share of the total Account Reconciliation Software market in 2019, and is expected to be 36.87% by 2027. The collective revenue of North America in Account Reconciliation Software is expected to generate $259999.9 million during 2020-2027. North America Account Reconciliation Software market is growing due to high public awareness, intense competition and continuously growing transaction volume in the region. Account Reconciliation Software improves the quality and accuracy of financial data and reduce errors and inaccuracies. This saves a considerable amount of time and allows highly skilled accountants to focus on more difficult tasks, like analysis, risk mitigation, and exception handling.
The North America market is majorly segmented into U.S. and Canada. U.S. Account Reconciliation Software market was valued at $**** million in 2019 and is estimated to grow at a CAGR of 8.6% over the forecast period 2020-2027. U.S. holds 79% of market share of the North America Account Reconciliation Software market in 2019, and is expected to be 79.6% by 2027. The collective revenue of U.S. in North America Account Reconciliation Software is expected to generate $***million during 2020-2027. Account Reconciliation Software market is growing in U.S. due to new technological advancements for easy usage, less time consumption increase in internet and mobile banking and improvement in the banking and financial sectors in the country.
Companies present in the region are focusing on automated account reconciliation as this is less time consuming and error free. For instance, Seattle-based company Sigma IQ Inc. has a software-as-a-service (SaaS) product that enables companies to automate their financial account reconciliations process. The software uses machine learning. Digital banking is also highly prevalent in the region. Mobile banking provides convenient features that are increasingly sophisticated and capable of replacing brick-and-mortar service. As consumers are becoming more familiar and confident in mobile technology, the use of apps and web tools for banking is also increasing. According to a survey conducted in U.S. in 2019, around 58% of U.S. population uses mobile banking for transferring money and in 2016 around 62% of U.S. population cited digital banking as their primary method of banking. Digital banking requires user friendly financial software for better customer service and higher security against online frauds that can be tracked by account reconciliation softwares. Some of the major market players are headquartered in U.S. such as Broadridge Financial Solutions, ReckonArt Inc., Oracle Corporation, SS&C Technologies, Trintech, Blackline Inc., Treasury Software Corp. and Fiserv Inc.
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