Global Financial Services Application Market - by Services, by Software, by Deployment, by size of business, and Geography - Growth, Trends, and Forecasts (2018 - 2023)
The global financial services application market was valued at USD 74.35 billion in 2017, and it is projected to reach a value of USD 117.1 billion by the end of 2023, at a CAGR of 7.86% during the forecast period, 2018-2023. With the use of technology, the banking and financial sector has incorporated risks into the mainstream decision-making, promoting a culture that incorporates risk management, consistently monitoring performance, providing relevant market intelligence, and delivering business and profitability insights. The global financial crisis brought the financial services industry into the limelight, questioning the data quality and the industry’s direction and decision-making. In the current scenario, financial services institutions need a potent and reliable business intelligence solution, to meet their enterprise needs. Due to the increasing number of financial institutions, there is a need for such financial services. These services are also found to enrich consumer experience, along with optimizing the workforce. On, the contrary, high deployment costs restrict the widespread use of such services. High number of regulatory issues also hamper the growth of the market.
BI & Analytics is Expected to be one of the Leading Financial Service Application Software
One of the most recent trends witnessed in the market is the increased adoption of self-service analytics tools, wherein, end users can gain insight, with minimal technical knowledge. A recent survey conducted on the effectiveness of BI tools, served as a word of caution for new firms, as more than two-third of the BI projects failed, due to lack of co-ordination between the IT, business, and management teams. One of the root causes of this issue is that BI is an engineering problem, rather than a business one. Therefore, there always exists a risk of a communication breakdown between different teams, due to such difficulties, the market for financial service applications is expected to continue to grow. Big data analytics are considered very integral applications to business intelligence, in the industry. 87% of the enterprises believe that analytics will redefine the competitive landscape of their industries.
North America is Expected to hold a High Market Share in the Financial Services Applications Market
Many banks in the United States have adopted latest technologies, such as artificial intelligence (AI) to provide more personalized services. The adoption of financial service applications has increased the sophistication of decisions being taken, which provides an increased level of reassurance to stakeholders. United States is one of the largest market for financial technologies adoption, primarily due to the country being a pioneer in the field of FinTech, further buoyed by the presence of major financial giants in the region. Many institutions, such as the Office of the Comptroller of the Currency, in the United States has taken necessary measures to achieve uniform and national set of standards for financial technology institutions, which is further expected to augment the market for such technologies.
Key Developments in the Market
January 2018: Baidu, a Chinese search engine giant, launched blockchain as a service. This platform offers financial analysis as a part of the services offered, which enable better decision making. This platform enables the first of its kind asset-backed securities exchange products using blockchain technology, capable of transforming the payment infrastructure in the country.
Major Players: ACCENTURE PLC, FIS CORPORATION, FISERV INC., IBM CORPORATION, INFOSYS LTD, MISYS, ORACLE CORPORATION, SAP SE, TCS LTD, TEMENOS GROUP AG
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