Banking Encryption Software Market Size, Share & Trends Analysis Report By Component, By Deployment, By Enterprise Size, By Function, By Region, and Segment Forecasts, 2021 To 2028

Banking encryption software is a data protection platform, which allows banks and financial institutions to confidentially exchange the details of transaction documents with their customers. Some of the benefits offered by banking encryption software services include hassle-free data transaction service and high security. Furthermore, various financial institutions and banks are using banking encryption software platforms to effectively provide secure payment processing services to their customers. The increase in the adoption of encryption software among various banks across the globe is expected to propel the banking encryption software market growth over the forecast period.

Banking Encryption Software Market Segmentation

The global banking encryption software market is expected to witness significant growth over the forecast period owing to the increase in the use of digital payment technology among users. Moreover, the increase in demand for data security technology among financial institutions and banks is expected to further propel the market growth over the forecast period. To protect the confidential information of customers, such as credit scores, names, addresses, and social security numbers, from cyberattacks, numerous banks use a banking encryption software platform. This banking encryption software effectively helps banks decrypt and encrypt customer’s confidential information according to the customer demand, and owing to this, most of the banks and fintech agencies are deploying banking encryption software across their premises. Furthermore, to protect client information such as call center transcripts, survey responses, customer emails, and banker notes, the banking & financial industry is using encryption technology, which helps them improve business operations.

The COVID-19 pandemic is expected to have a positive impact on the banking encryption software market. The spending on encryption software in the banking industry is anticipated to increase as compared to the investment planned before the pandemic due to various factors, such as increase in the use of digital banking services and increase in the adoption of mobile payment services among individuals. An increase in the use of digital payment technologies such as credit cards, debit cards, and mobile banking among individuals is also driving the growth of the market. Banking encryption software provides several benefits such as reduction in fraudulent activities in various banking processes, higher payment security, and improvements in payment transaction services owing to the integration of encryption software in the electronic payment method. Financial institutions and banks have been handling a large amount of personal and financial data of their customers. Therefore, to enhance the security of various critical documents and protect large volumes of financial records of the customers, fintech companies and banks are adopting encryption software.

Numerous venture capital firms are focusing on investing in banking encryption software platforms owing to the increasing demand for data security technology among banks. For instance, in September 2019, PreVeil, an encryption software start-up, announced that it raised USD 7 million to improve its encryption software capabilities. This software encrypts email files and communications that integrate with Microsoft's Office 365 by effectively adding an encrypted inbox to Outlook.

The key players in the banking encryption software market include Broadcom; IBM Corporation; Intel Corporation; McAfee, LLC; Sophos Ltd.; Thales Group; and Trend Micro Incorporated, among others. These market players are pursuing various organic and inorganic growth strategies to strengthen their market position and increase their market share. For instance, in April 2021, IBM Corporation introduced IBM Cloud for financial service providers, the industry’s financial services-ready cloud platform. This platform was developed to assist in lowering the payment risk for financial institutions, banks, and FinTechs, and their partners.