Bank Reconciliation Software Market | Contrive Datum Insights

Global Bank Reconciliation Software Market Size

The Global Bank Reconciliation Software Market Size Was Valued At USD 2.29 Billion In 2022 And Is Estimated To Reach An Expected Value Of USD 6.93 Billion By 2030, Registering A CAGR Of 14.8% During The Forecast Period (2022 – 2030).

{{info}} 

Bank reconciliation software is made to help businesses and people match up their bank statements with their financial records. This makes sure that everything is correct and lets them know if there are any problems. 

Reconciliation is the process that accountants use to compare two sets of records in order to check a person's monthly statements. Reconciliation software also helps businesses improve the quality and accuracy of their accounting process and cut down on mistakes and mistakes. It also gives businesses full control over the automation process by letting them manage important procedures in a safe and effective way. Also, many industries, such as BFSI and retail, are using this software to control the billing process and make accounting clear. As more small and medium-sized businesses (SMEs) use cloud-based reconciliation software, the market should also get a chance to make money.

Global Bank Reconciliation Software Market Growth Factors

Market Trends

Account reconciliation software is used by many businesses to reduce the number of accounting mistakes, keep track of interest charges, lower the risk of fraud, and keep an eye on data like trial balances and cash flows. Aside from this, the main things driving the market are the growing need for standardization in banks and the widespread adoption of customer-centric banking solutions. Also, product adoption rates are going up because there is more demand for automated banking solutions and error detection software to improve operational efficiency and lower overall costs. Also, the top players are putting out new account reconciliation software that uses advanced technologies like artificial intelligence (AI) and machine learning (ML) to improve cash flow management and the reconciliation process. This, along with the fact that cloud solutions are becoming more and more popular, is helping the market grow. A positive outlook for the market is also caused by things like the growing need for electronic bills, the growing number of online transactions and credit card payments, technological advances, and good government policies.

Driving Factors

Growing Volume of Security Breaches and Frauds to Accelerate the Adoption of Reconciliation Solutions

The number of security breaches and frauds is going up, which has hurt many industries around the world. Frauds related to fintech have been more common in the financial sector than in other fields. The PwC Global Economic Crime and Fraud Survey found that 44% of customer fraud happened in financial services. In 2022, 38% of people also had to deal with cybercrime.

More and more banks and other financial institutions are using reconciliation solutions to fix these security problems. Reconciliation tools help keep banks from losing money and getting into fights over unfinished or reversed transactions. Adopting an automated banking solution can make things easier, make it easier to find and fix problems, and make the best use of people's time. It makes it possible to standardize procedures and set priorities and keep an eye on key accounts. This leads to real-time information and analysis delivery, which helps businesses make strategic decisions.

So, the growth of the global account reconciliation software market in the last few years has been caused by the rise in financial services fraud.

Rising Number of Strategic Alliances Among Key Players to Aid Market Augmentation

Strategic partnerships and collaborations are good for the growth of any business. Strategic alliances are a way for key market players to improve their own solutions by adding the capabilities of the other company. The way that market players use this strategy helps them reach a large number of customers, which is good for their position in the reconciliation ecosystem. 

Trintech, ReconArt, and Gresham Technologies plc, among others, are working with major reconciliation players around the world to improve their portfolios and services.

• In April 2022, for example, ReconArt grew its partnerships across the Asia-Pacific region. Financial management consultants and technology integrators in Hong Kong, Indonesia, India, Vietnam, and Pakistan are starting to notice and praise the company's technologically advanced account reconciliation and transaction matching platform.

Ever-Increasing Demand for Accurate & Efficient Financial Reconciliation Processes

Due to globalization, digitalization, and business growth, the number and complexity of financial transactions are growing quickly for many organizations around the world. Because of this, and because there are more transactions and they are much more complicated, it is becoming more and more important for businesses to have accurate and efficient reconciliation processes in place to maintain financial integrity and make sure they are following the rules. So, the main thing that is expected to drive the Global Account Reconciliation Software Market from 2023 to 2028 is the rising need for accurate and efficient financial reconciliation processes across enterprises. 

Market Restraints/Challenges

Higher Premium Cost of Reconciliation Solutions to Hinder Market Growth

The high price of reconciliation software is likely to slow down the market. Also, small businesses are more likely to do their basic reconciliation processes when there are free tools available. Most small businesses don't have enough money to spend on high-end software tools. Instead, these businesses tend to use solutions that are free to use. So, the higher premium cost of reconciliation solutions and the fact that free solutions are available could slow the market's growth over the next few years.

Unfavorable Conditions

Unfavorable conditions caused by the Covid-19 pandemic are also expected to slow the growth of the market. The spread of the virus in China hurt several industries. Because most countries had lockdown rules, the fintech and banking industries were shut down all over the world. During the pandemic, this had an even bigger effect on the demand for recon software. Because of this, this factor is likely to slow down the growth of the account reconciliation software market over the next few years.

Different Security Issues Faced by Enterprises

Because the software doesn't provide enough security, there are more cyberattacks on online transactions. This is one of the main things that slows the growth of recon software. Also, organizations that use reconciliation software face a number of problems, such as inputs that are prone to errors, slow data inputs, and the inability to find big frauds. Also, small and medium-sized businesses are more likely to make mistakes or be attacked online, which slows market growth. One of the most important reasons for manufacturing companies to use reconciliation software is to find fraud. If there isn't enough oversight of these processes, it can lead to a loss of money. Also, the growth of the market is limited by the rise of cyberattacks on different industries and the fact that software can't find these attacks.

Market Opportunities:

Growth in Use of Machine Learning and Artificial Intelligence In Recon Software

Artificial intelligence (AI) is an important part of many types of recon software and development. Many companies that make remarketing software, like Oracle Corporation, SAP SE, Fiserv, and others, use machine learning and artificial intelligence to build their remarketing software models. This makes the market for remarketing software look like it could grow in a good way. For example, in 2018, SAP SE released its SAP Cash application, which uses machine learning and artificial intelligence to improve the reconciliation process and cash flow management. A few merchants are also using artificial intelligence in their software for reconciliation. This helps to cut down on mistakes made by humans in accounting and makes bank transactions safer. AI also makes it easier to see every transaction, so shops can learn more about what their clients are doing. So, giving the market good chances to make money.

Growing Adoption of Reconciliation Software among SMEs

Small and medium-sized businesses (SMEs) are using reconciliation software more and more. This is likely to create growth opportunities in the global account reconciliation software market over the next few years. In every developing market, the growth of small and medium-sized businesses is a big deal. These businesses rely heavily on recon software because it streamlines their business processes and helps them make the best use of their resources. As SMEs are more likely to be scammed, they are more likely to use recon software. Because more and more people are using reconciliation software, the market is likely to grow very quickly.

Segmentation Analysis

The market is segmented on the basis of deployment, organization, end-user, functionality and region.

By Deployment Outlook

The market share can be split into two groups: cloud and on-premises. In the past few years, on-premises deployment of reconciliation software has been the most popular choice on the market. This is because SMEs are more likely to use the software and because it keeps their data safer.

On the other hand, the cloud segment is expected to grow quickly over the next few years. Neo banking is a new idea in the world of banking. During the COVID-19 pandemic, the number of people who use neo-banking has grown by a lot. Users now use digital banking instead of traditional banking to meet their financial needs. This is because of how people behaved during the pandemic and how much they depend on technology. Because of this, the need for cloud-based reconciliation solutions has grown at a fast rate. 

• Cloud
• On-premise

By Organization Size

Small and medium-sized enterprises (SMEs) and large enterprises make up the different parts of the global reconciliation software market share. In 2022, the large businesses are likely to have the largest share. An automated banking solution lets big businesses get rid of mistakes made by people and make it easy to reconcile.

Due to the growing demand for cloud-based reconciliation services, SMEs are expected to grow at a steady CAGR from 2023 to 2030.

• Small and Medium-sized Enterprises (SMEs)
• Large Enterprises

By End-User

The market share is divided into banks, financial institutions, and insurance companies based on how they are used. In 2022, the banks segment is likely to have the largest market share. Traditional manual reconciliation processes cost a company the most money and are the least effective. An EY survey found that up to 59% of a financial sector's tools and resources are used to manage processes with a lot of transactions.

A standard, risk-based approach is used to adopt an automated banking solution, no matter how many companies, banks, businesses, or accounts are involved. It keeps a record of everything that has been done to reconcile for both internal and external auditors. This improves the reconciliation process and makes it less risky. So, these advantages over traditional methods have made banks more likely to use software. The banks will have the biggest share of the market in 2022, and this is likely to continue in the years to come. 

• Banks
• Financial Institutions
• Insurance

By Functionality

Core Reconciliation: This is software that does nothing but match up bank transactions with financial records.

Integrated accounting is when software for reconciling a bank account is built into a larger accounting system. This makes it possible for data to be transferred easily and for complete financial management.

Treasury Management: Solutions that let you reconcile your bank accounts, manage your cash, predict your cash flow, and run your treasury.

• Core Reconciliation
• Integrated accounting
• Treasury Management

Top market players are

1. Xero
2. Unit4
3. Trintech
4.  SmartStream
5. SAP
6. Rimilia
7. ReconArt
8. Xero
9. IStream Financial Services
10. Open Systems

Xero Ltd.

Xero Ltd. (Xero) makes accounting software for accountants, bookkeepers, and small and medium-sized businesses that runs in the cloud. The company offers a variety of accounting services, such as bank transactions, invoices, reports, and sales tax. It also gives management reports, solutions for bank reconciliation, tools for accountants, and full drill-through solutions for billing.

Unit4

Unit4 is a software company that has been around since 1980. It makes enterprise software, enterprise resource planning (ERP) applications, and other related professional services for people in services organizations. The company is based in the Dutch city of Utrecht.

Trintech

Trintech Inc. is the world's leading provider of integrated reconciliation and financial close solutions for Finance and Accounting departments that are based in the cloud.

SmartStream

SmartStream is a well-known leader in financial transaction management solutions that help companies improve operational control, cut costs, build new revenue streams, reduce risk, and make sure they are following the rules.

SAP

SAP SE (SAP) is a company that sells enterprise application software and services that go with it. It offers a wide range of solutions, such as enterprise resource planning and financial management, intelligent technologies, analytics, human resource, people engagement, digital supply chain, network, spend management, customer relationship management, and customer experience.

Rimilia

Rimilia is an account receivable management software company that uses Robotic Process Automation (RPA) and is based in the cloud. The "Alloc8" software includes Cash allocation/application, Credit control and collections, Cash forecasting, Bank reconciliation, and Intelligence.

ReconArt

ReconArt is a single-solution technology company that offers a modern, enterprise-class, fully web-based reconciliation platform to a wide range of clients in all sizes and types of businesses all over the world.

Oracle

Oracle Corporation (Oracle) offers businesses cloud-based solutions. The business sells software for databases and middleware, application software, software for cloud infrastructure, and hardware systems. It also offers integrated cloud solutions, such as Infrastructure-as-a-Service (IaaS) and Software-as-a-Service (SaaS).

Open Systems

Open Systems is a company that offers services for network security, application delivery, identity management, global connectivity, and integrated service management. Its products are SD-WAN, SD-WAN-as-a-Service, Managed Detection and Response, SOC-as-a-Service, and WAF.

IStream Financial Services

iStream Financial Services offers treasury management solutions that cover all parts of an A/R or A/P payment transaction. End-to-end payment solutions from iStream for all types of payments save time and money and improve cash flow.

Regional Insights

The global Bank Reconciliation Software market has been studied in North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa (MEA).

{{info2}}

In terms of revenue share, North America led the world market in 2022. This growth can be explained by the fact that many banks and other financial institutions use these software solutions to reconcile their bank accounts. The growth of regional markets has also been helped by technological advances like artificial intelligence (AI) and machine learning. During the forecast period, the Asia-Pacific market is expected to grow by a large amount. This is because more retail companies are using inventory management software for billing and accounting purposes. Also, more people are using mobile banking apps, which is expected to increase demand in the region from 2022 to 2030.

Strategic Development:

• In June 2022 - DUCO opened a new office in Boston to serve its growing number of customers in North America.
• In March 2022 - DimeTyd added reconciliation consulting and a cash application to its platform as a way to improve it. This new feature uses machine learning and automation to help online product sellers use Amazon's Marketplace, check invoices, and make sure payments are made.
• In January 2022 - BlackLine, Inc. bought FourQ Systems, Inc. to improve its ability to automate intercompany accounting. This purchase makes the company's long-term plan to modernize and change finance and accounting even stronger.
• In August 2021 - SmartStream Technologies released SmartStream Air Version 4, an update that makes it possible to stream reconciliation software without stopping. It does this by using new technologies like artificial intelligence (AI) and the cloud. This improved version handles large amounts of data and allows reconciliations to happen continuously and in real time. It also checks for completeness and accuracy without having to reload items that don't match.
• In June 2021 - Order2Cash teamed up with Cashbook to make the order-to-cash process more automated, easier to integrate, and faster to reconcile globally.

Scope Of Report

Segmentations

1. By Deployment Outlook
   1. Cloud
   2. On-premise
2. By Organization Size
   1. Small and Medium-sized Enterprises (SMEs)
   2. Large Enterprises
3. By End-User
   1. Banks
   2. Financial Institutions
   3. Insurance
4. By Functionality
   1. Core Reconciliation
   2. Integrated accounting
   3. Treasury Management

Conclusion

• The report gives a lot of information about how different things work in the global market. Some of them are growth drivers, growth restraints, competitive landscape, regional analysis, and challenges.
• It also gives an analysis of the market, current trends, and estimates to show where the best places to invest will be in the future.
• From 2023 to 2030, the market is looked at quantitatively to find out how financially stable it is.
• Detailed information about the companies is provided. In addition, the report details their capacity, production, price, revenue, cost, gross, gross margin, sales volume, sales revenue, consumption, growth rate, import, export, supply, future strategies, and technological advancements.