According to a recent report published by Allied Market Research, titled, “Account reconciliation Software Market by Component, Deployment Model, Enterprise Size, Reconciliation Type and Industry Vertical: Opportunity Analysis and Industry Forecast, 2020–2027,” the global account reconciliation software market size was valued at $1.82 billion in 2019, and is projected to reach $5.38 billion by 2027, growing at a CAGR of 14.6% from 2020 to 2027.
The main purpose of account reconciliation software is to ensure that the account balance is correct between tow accounts at the end of an accounting period. In addition, it is mainly used to keep track of various information such as cash flows, trial balance, and also generates reports. Furthermore, it offers different benefits, which include tracking interest fees, reducing the risk of frauds, tracking receivable, and identifying & reducing accounting errors. In addition, banks and fintech industries are adopting account reconciliation software as it provides real-time updates at every stage of the accounting process, which increases the operational efficiency of the organization. Moreover, increase in online transactions among various industries and rise in need for reconciliation management system drive the growth of the market. In addition, growing adoption of automated banking solutions across the globe to reduce reconciliation time fuels the growth of the market. However, various security issues in account reconciliation software hampers the account reconciliation software market growth. Furthermore, higher adoption of account reconciliation software among the SMEs and rise in usage of machine learning and artificial intelligence in account reconciliation software are the factors expected to provide lucrative opportunities for the growth of the market.
By reconciliation type, the account reconciliation software market was led by the bank reconciliation segment in 2019, and is projected to maintain its dominance during the forecast period. Rise in adoption of bank reconciliation software among financial institutions to reduce human errors and to manage cash receipts efficiently. However, the customer reconciliation segment is expected to grow at the highest rate during the forecast period, owing to surge in adoption of customer reconciliation by various industries such as retail & e-commerce, manufacturing and others, which is boosting the growth of the market.
Region wise, the account reconciliation software market was dominated by North America in 2019, and is expected to retain its position during the forecast period. The major factors that drive the growth of the market in this region include penetration of account reconciliation software among business to increase their operational efficiency. However, Asia-Pacific is expected to witness the highest growth rate during the forecast period due to rise in adoption of cloud-based account reconciliation software among the SMEs in emerging countries such as China and India.
Though COVID-19 crisis continues to disrupt many industries, it has opened opportunities for high adoption of cloud-based account reconciliation software due to the rising usage of digital banking among several end user industries. Thus, to manage the online transaction of individuals and businesses, many banks and fintech industries are adopting account reconciliation software. Furthermore, various key players in the market are introducing new strategies to enhance the customer experience and to improve their market share in this pandemic situation.
Key Findings Of The Study
- On the basis of component, the software segment led the account reconciliation software market, in terms of revenue in 2019.
- By deployment model, the on-premise segment accounted for the highest account reconciliation software market share in 2019.
- Depending on reconciliation type, the customer reconciliation segment is anticipated to exhibit substantial growth during the forecast period.
- Region wise, North America generated the highest revenue in 2019.
The key players profiled in the account reconciliation software market analysis include AutoRek, BlackLine, Inc., Broadridge Financial Solutions, Inc., Fiserv, Inc., Oracle Corporation, Quickbooks, ReconArt, Inc., SAP SE, Sage Software Solution Pvt. Ltd., and Xero Limited. These players have adopted various strategies, such as partnership and product developments to increase their market penetration and strengthen their position in the industry.