Banking Encryption Software

Banking Encryption Software

Banking Encryption Software can be described as a security software application that prevents unauthorized access to important financial information by encoding it in such a way that it becomes impossible for outsiders to understand. This protects customer data, web purchases, and banking details from the many threats of cyber security and hacking. This software offers features for data encryption that is in transmission, storage, and processing for on-premise, cloud, or hybrid banking settings. It is fueled by more cases of cyber security threats, high regulatory standards, and a growing inclination toward digital banking services.

The Banking Encryption Software Market is expected to grow with a significant CAGR of 13.3% during the forecast period (2024-2032). This is mainly because of the rise in the number of banking transactions and internet and mobile financial activities. Thus, encryption provides consumer trust that aids in the promotion of the effectiveness of modern legislation policies on data protection in the banking business. Also, progress such as AI in the encryption process along with post-quantum cryptographic innovation enhances the protection more. A shift in the market forms a more secure digital banking environment worldwide. On August 13, 2024, The U.S. Department of Commerce’s National Institute of Standards and Technology (NIST) released a final set of encryption tools designed to withstand the attack of a quantum computer. All these post-quantum encryption standards offer a variety of types of electronic information protection, starting from the emails’ content and ending up with the economic transactions that make the modern world go round. Computer system administrators are recommended to migrate to the new standards as soon as the projects allow it, according to NIST.

• Based on the component, the market is segmented into software and services. The software held a significant share of the market in 2023 because of meeting the increasing demand for cybersecurity, meeting new regulations and for security of financial information due to the growing trend of digital banking. Because of it, banking companies can protect information within cloud, mobile, and on-premise systems, which increases clients’ trust. Also, M&A, affiliations with cybersecurity industries, and investments in post-quantum cryptography then protect against future risks. In general, these efforts fostered operational resiliency and compliance with rules, which drive market growth. For instance, in March 2022, McAfee Corp. (NASDAQ: MCFE, “McAfee”), a global leader in online protection, announced the completion of its acquisition by an investor group led by Advent International Corporation (“Advent”) and funds advised by Permira, Crosspoint Capital Partners L.P. (“Crosspoint”), Canada Pension Plan Investment Board (“CPP Investments”), GIC Private Limited (“GIC”), and a wholly-owned subsidiary of the Abu Dhabi Investment Authority (“ADIA”) (collectively, “the Investor Group”).
• Based on deployment, the market is segmented into on-premises and cloud. On-premise held a significant share of the market in 2023 by offering the organization’s executives better security for their data and meeting the established regulatory requirements. The larger the bank the higher security issues they have and these institutions favor on-premise solutions because they do not necessarily require internet connectivity. This is driven by institutions that wish to retain full control of how encryption is done or how data is stored.
• Based on the organization size, the market is segmented into large enterprises and small and medium enterprises. Small and medium enterprise is expected to grow with a significant CAGR during the forecast period (2024-2032). This sector propels encryption usage to counter increasing threats as well as compliance issues. The benefit of decreasing costs is that SMEs are forced to opt for affordable cloud encryption solutions that will suit their size. The growth of this segment is driven by digital enablement strategies and the rising concern for customers’ information in various industries.
• Based on function, the market is segmented into disk encryption, communication encryption, file/folder encryption, and cloud encryption. Disk Encryption held a considerable share of the market in 2023. This is mainly due to this segment positively impacting market growth by encrypting the entire hard drives which ensure the protection of banking information in case of theft or loss of devices. It is used by banks to include endpoint protection of employees’ laptops, desks, and other portable devices. This segment is getting more popular with the rise of remote work and the policy ‘Bring Your Device’.
• For a better understanding of the market adoption of Banking Encryption Software, the market is analyzed based on its worldwide presence in countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, France, U.K., Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. Asia-Pacific is expected to grow with a significant CAGR during the forecast period (2024-2032) owing to the surge in incentives to banking encryption software but through encouraging digitization of banking, escalating cyber incidences, and compelling rules such as India’s IT Act and China’s Cybersecurity Law. Moreover, increased usage of mobile banking and a rapidly developing fintech industry increases the need for better encryption services in the region. According to the World Bank in 2021, In developing economies, about 40 percent of adults who paid utility bills (18 percent of adults) did so directly from an account. In China, about 80 percent of adults made a digital merchant payment, whereas in other developing economies 20 percent of adults did so.
• Some of the major players operating in the market include Trend Micro Incorporated, Dell Inc., Sophos Ltd., Check Point Software Technologies Ltd., WinMagic, IBM, McAfee, LLC, Thales, Microsoft, and Broadcom.