The Financial Services Application market was valued at USD 103.99 billion in 2019 and is expected to reach USD 164.01 billion by 2025, at a CAGR of 7.89% over the forecast period 2020 - 2025. Financial services applications have come into focus ever since financial Institutions have introduced online solutions and innovations such as person to person payment, online transfers, alerts, and other such services.
- With the usage of technology, the banking and financial sector has been incorporating risk into mainstream decision making, promoting a culture that incorporates risk management, consistently monitors performance, provides relevant market intelligence, and delivers business and profitability insights.
- Businesses across the globe require systems that can use customer data to comprehensively analyze the usage patterns, demand peaks, and consumption fluctuations and arrive at a decision. All of this increases the need for a system that handles big data effectively and this kind of demand for business analytics tools is driving the market forward.
- In the current scenario, financial services institutions need an effective and reliable business intelligence solution to meet their enterprise needs. Also, due to the increasing number of financial institutions, there is a need for such financial services, which is expected to boost the growth of the market.
Scope of the Report
Financial services application are defined as the products and services offered by institutions for various financial transactions and other related services in the world of finance like Consulting Services, Integration Services and audit, risk, and compliance management among others.
Key Market Trends
BI & Analytics Application is Expected to Witness High Growth
- BI solutions can be effectively used to add value in KPI measurement, knowledge management, reporting, analytics, and collaboration. Further, BI tools are also used as a trigger for notifying specific events. Moreover, the market has witnessed increased adoption of self-service analytics tools, wherein, end-users can gain insights with minimal technical knowledge.
- Big data analytics is also considered as a very integral application for business intelligence in the industry. Major enterprises across the globe believe that analytics will completely change the competitive landscape of various industries and the lack of adoption of big data analytics strategies will result in a crumbling of the market share of the companies in the near future.
- Owing to its significance in shaping the future of the companies by guiding the enterprises in finding essential business value. Big data analytics is expected to witness exponential growth during the forecast period.
North America to Hold a Significant Market Share
- Many banks and financial institutions in the United States have adopted the latest technologies, such as artificial intelligence (AI) to provide more personalized services to the customers.
- The increased adoption of financial service applications has increased the sophistication of decisions being taken in the organizations, which provides an increased level of reassurance to stakeholders.
- The United States is one of the largest markets 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 a uniform and national set of standards for financial technology institutions, which is further expected to augment the market for such technologies.
The financial services application market is moderately competitive owing to the presence of many players providing services in domestic as well as in international markets. The market appears to be mildly concentrated with the key strategies adopted by major players are product and service innovation, mergers and acquisitions. Some of the major players in the market are Accenture Plc, Corporation, Oracle Corporation among others.
- January 2019 - SAP SE announced its new SAP S/4HANA for financial products sub-ledger. The solution provides a central hub to manage data between operational and finance systems, streamlining accounting flows and supporting increased transparency and control.
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