Account Reconciliation Software Market Forecasts to 2028 – Global Analysis By Deployment (On-Premise and Cloud), Enterprise Size (Small & Medium Enterprises and Large Enterprises), Reconciliation Type (Inter Company Reconciliation, Bank Reconciliation and

Account Reconciliation Software Market Forecasts to 2028 – Global Analysis By Deployment (On-Premise and Cloud), Enterprise Size (Small & Medium Enterprises and Large Enterprises), Reconciliation Type (Inter Company Reconciliation, Bank Reconciliation and Inter Company Reconciliation), Component (Services and Software), End User and By Geography

According to Stratistics MRC, the Global Account Reconciliation Software Market is accounted for $2.88 billion in 2022 and is expected to reach $7.25 billion by 2028 growing at a CAGR of 16.6% during the forecast period. Reconciliation is the process of comparing monthly financial accounts from external sources, such as banks, financial institutions, and credit card firms, with monthly accounts from internal sources connected to finances. Many banks and fintech firms employ account reconciliation software to control their internal sales register accounts and spot human mistakes. The primary objective of account reconciliation software is to guarantee that the balance of two accounts at the conclusion of the accounting month is accurate.

According to a survey conducted by Citibank in 2019, around 70% of banks in the UK used automated account reconciliation software, which reduced their operational cost and improved security.

Market Dynamics:

Driver:

Growth in online transaction

The need for reconciliation software has increased as a result of the expansion in digitalization across several sectors. Additionally, as a result of an upsurge in urbanization, supportive governmental regulations, and an increase in internet transactions, the retail sector has become one of the most adaptable industries. The increase in e-commerce sales has resulted in an increase in online payments and electronic billings; as a result, merchants are using recon software to keep track of online data, supporting market growth.

Restraint:

Different security issues faced by enterprises

Due to the lack of security offered by the programme, one of the main problems limiting the expansion of recon software is an increase in cyber attacks on online transactions. Additionally, firms who use reconciliation software have a number of problems, such as delayed data inputs, error-prone inputs, and the inability to identify large frauds. Furthermore, small and medium-sized businesses are more vulnerable to human error and cyber attacks, which hampers market expansion.

Opportunity:

Growth in use of machine learning and artificial intelligence

Artificial intelligence (AI) is a crucial component of several sorts of recon software and development. In order to construct their recon software models, a large number of companies are turning to machine learning and artificial intelligence, which has the enticing potential to expand the industry. In order to reduce human error in the accounting process and enhance the security of bank transactions, some merchants are also incorporating artificial intelligence into their software for reconciliation. Additionally, AI improves transaction visibility, which helps businesses better analyze customer transactions. As a result, the market will have lucrative opportunities.

Threat:

High cost of reconciliation software

The price of reconciliation software is expected to restrict the market. Furthermore, publicly accessible solutions entice small enterprises to do their fundamental reconciliation activities. The majority of small firms cannot afford to buy expensive software solutions. Instead, these companies frequently use solutions that are readily accessible. Additionally, throughout the course of the forecast period, factors including a lack of understanding and awareness of the benefits of employing reconciliation software are anticipated to restrain the growth of the global account reconciliation software market.

Covid-19 Impact

Globally, COVID-19 has an impact on several industries. The pandemic will cause a decline in the demand for automated reconciliation software. Many private and public organizations were temporarily closed as various governments announced nationwide lockdowns to stop the spread of the virus. The market suffered because of the global economy's disruption. However, the market is projected to experience growth again in the post-pandemic phase as more fintech and bank industries embrace cloud-based account reconciliation software to reduce the loss brought on by the COVID-19 pandemic situation.

The bank reconciliation segment is expected to be the largest during the forecast period

The bank reconciliation segment is estimated to have a lucrative growth, due the rise in the adoption of the reconciliation process in banks and the fintech industry. Additionally, the expansion of bank reconciliation software is fueled by the rise in errors in the banking industry, such as calculation errors, double payments, and missing payments errors. Furthermore, it is projected that the industry will benefit from the growing demand to monitor accounts payable and receivable.

The software segment is expected to have the highest CAGR during the forecast period

The software segment is anticipated to witness the fastest CAGR growth during the forecast period, due to an increase in the adoption of recon software solutions in the retail industry. Moreover, businesses in the retail industry have been implementing this software to improve operational effectiveness and aid staff in better inventory management. Additionally, by increasing their revenue margin, reducing operating expenses, and automating their sales transaction details, different retail businesses have benefited from recon software.

Region with highest share:

North America is projected to hold the largest market share during the forecast period, owing to the increased use of cutting-edge technologies in the banking and fintech industries and the requirement to manage the large amount of data produced by online transactions. Furthermore, a few of banks in North America have implemented account reconciliation software to detect banking fraud in real-time and streamline consumer transaction processes.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, owing to the substantial demand in European nations for specialized reconciliation software solutions that adhere to the new GDPR regulations. Additionally, BFSI organizations have been gradually implementing account reconciliation software products, which support them in streamlining procedures to raise customer satisfaction and enable them to cut the time spent on data preparation by 15 times. As a result, these businesses are better equipped to retain customers and grow their market share.

Key players in the market

Some of the key players profiled in the Account Reconciliation Software Market include Sage Software Solution Pvt. Ltd., Broadridge Financial Solutions, Oracle Corporation, AutoRek, BlackLine, Fiserv, Quickbooks, ReconArt, SAP SE, Xero Limited, SmartStream, Adra, Cashbook

Key Developments:

In June 2020, BlackLine and Capgemini, a leader of consulting, technology, professional, and outsourcing services, inked a collaboration agreement. The goal of the alliance was to help finance and accounting (F&A) teams cut business-process expenses while improving process effectiveness and efficiency.

In March 2020, AutoRek joined with Nationwide Building Society, one of the major savings and mortgage providers. AutoRek aims to build a market-leading cloud-based financial controls and data management platform as a result of the agreement. This platform can handle a variety of reconciliation and attestation issues.

In February 2020, AutoRek partnered with The Bank of England and the bank is expected now to employ AutoRek's automated reconciliation and data management service. The new technology was designed to give the bank a consolidated platform for daily and monthly reconciliation duties.

In December 2019, QuickBooks announced the launch of novel Online Payroll. This product allows small businesses to run payroll and file taxes automatically and receive tax penalty protection and gain access to essential services such as health benefits, worker’s compensation and on-demand HR.

In September 2019, Oracle Corporation entered into collaboration with FSS for helping banks execute digital payment strategies successfully, with the use of enterprise class, corporate payment solution, and open and modern retail.

Deployments Covered:
• On-Premise
• Cloud

Enterprise Sizes Covered:
• Small & Medium Enterprises
• Large Enterprises

Reconciliation Types Covered:
• Inter Company Reconciliation
• Bank Reconciliation
• Customer Reconciliation

Components Covered:
• Services
• Software

End Users Covered:
• Government & Public
• Retail & E-Commerce
• IT & Telecom
• Healthcare
• Manufacturing
• Energy & Utilities
• Banking, Financial Services and Insurance (BFSI)
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements