Reconciliation Software market size, share & industry analysis, By Component (Software, Services), By Deployment (Cloud, On-premise), By Application (Financial services, Insurance, Retail, Real Estate, Government, Others) and regional forecast 2022-2029

Financial institutions such as banks, insurance companies, among others are managing payments at an increasing pace across several touchpoints cash, debit & credit cards, mobile and online payments. Automating reconciliation software enables financial institutions and businesses to match transactions on a single unified platform. The automated recon software introduces automated workflow processes that minimize data manipulation and provide a complete audit trail analysis. As the volume of transactions increases, the automated reconciliation empowers businesses with enhanced flexibility and efficiency to meet consumer expectations for security, and convenience. These factors are likely to drive the market growth.

The trend of digital and online payment adoption continues to show exponential growth among consumers and businesses. This tremendous growth has surged the need for automated reconciliation processes among the end-users.  According to a 2018 research by Banking Circle on the United Kingdom's Insurance industry, 28 percent of the market relies on manual reconciliation methods whereas, only 4 percent have fully-automated reconciliation solutions eliminating human intervention. This shows that there is a steady adoption of software solutions mainly due to a lack of awareness and knowledge about the solutions.

Key Market Driver -

Increasing demand to automate and optimize the reconciliation management to drive the adoption of reconciliation software

Key Market Restraint -

Lack of awareness and knowledge about the advantages of recon software to restrict market growth

With the continuous rise of person to person payments (P2P), reconciliation has become difficult to manage. As per Early Warning Services, LLC, a provider of fraud prevention and management services headquartered in Scottsdale, United States, 171 million transactions were conducted through the Zelle network during the mid of 2019. Zelle is a digital payment network owned by Early Warning Services. The company also states that it was a 71 percent growth than 2018. The potential growth in the payment methods paves the way for fraud. These factors drive the need for automated reconciliation software.

The outbreak of COVID-19 is expected to boost the adoption of reconciliation software. However, due to the global economic downturn due to novel coronavirus, has hampered the technology spendings of the small and mid-sized enterprises and the large enterprises at a certain level. Owing to these factors the global reconciliation software market is likely to showcase a steady growth at an increasing pace.

Key Players Covered:

The major companies in the global reconciliation software market report ReconArt, Inc.,  SmartStream Technologies ltd., BlackLine Inc., Trintech Inc., SAP SE, Fiserv, Inc., Aurum Solutions,  Cashbook, Rimilia Holdings Ltd., OneStream Software LLC Oracle Corporation and others.

Regional Analysis:

North America is expected to emerge dominance in the global Reconciliation software market. The substantial rise in digitization services across industries, robust government policies, and rapid adoption of online transaction services are some of the top impacting factors that drive the market growth across the region. Europe is anticipated to hold a significant market share. Increasing demand for customized reconciliation software solutions compliant with the new GDPR policies is likely to expand the market size across the region.

Asia Pacific is forecast to exhibit a fascinating growth rate during the forecast period. The countries in Asia Pacific such as India, Japan, and China have made significant progress in financial services including online banking, mobile banking. The e-commerce industry has witnessed exponential growth due to the outspread of the novel coronavirus. These factors are likely to drive the market growth across the regions.

The Middle East and Africa and Latin America are anticipated to show moderate market growth. However, the regions are likely to hold potential market opportunities due to less share of market players. Lack of adequate usage of digitized banking services, online retailing are some of the factors that are likely to inhibit the market growth across the regions.

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Segmentation

Reconciliation Software Industry Developments

• In April 2020, SmartStream Technologies announced that Jumhouria Bank registered in Libya has implemented SmartStream’s solution for the reconciliation of cash payments. Through the implementation of reconciliation solutions, the bank aims to ensure greater visibility into the card, cash, central bank, and payment transactions.


• In October 2019, Blackline Inc. announced that NHS National Services Scotland (NSS) chose Blackline’s automation software to automate financial processes. NSS intends to deploy Blackline’s Account reconciliation tool incorporated with the capabilities of transaction matching and journal entry to drive the transformation of its finance processes.