IT BFSI Global Market Report 2025

Information technology in banking, financial services, and insurance involves using IT for a wide range of banking, financial, and insurance services. This includes managing data processing, application testing, software development, IT-enabled services, business process outsourcing, and technical and professional services.

Within the IT BFSI (Information Technology in Banking, Financial Services, and Insurance) sector, the main service categories are managed services and professional services. Managed services involve the delivery of network, application, infrastructure, and security services to clients through continuous support and active administration either on their premises, within the MSP's data center, or in a third-party data center. The technologies used in this process include cybersecurity, artificial intelligence, business intelligence, enterprise resource planning (ERP), human capital management (HCM), enterprise content management (ECM), customer relationship management (CRM), and unified communications. These technologies are deployed in both on-premises and cloud environments across organizations of varying sizes, including small, medium, and large enterprises.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a significant impact on the information technology sector, especially in hardware manufacturing, data infrastructure, and software deployment. Increased duties on imported semiconductors, circuit boards, and networking equipment have driven up production and operating costs for tech companies, cloud service providers, and data centers. Firms that depend on globally sourced components for laptops, servers, and consumer electronics are grappling with extended lead times and mounting pricing pressures. At the same time, tariffs on specialized software and retaliatory actions by key international markets have disrupted global IT supply chains and dampened foreign demand for U.S.-made technologies. In response, the sector is ramping up investments in domestic chip production, broadening its supplier network, and leveraging AI-powered automation to improve resilience and manage costs more effectively.

The it bfsi market size has grown rapidly in recent years. It will grow from $149.5 billion in 2023 to $170.91 billion in 2024 at a compound annual growth rate (CAGR) of 14.3%. The growth in the historic period can be attributed to regulatory compliance and security demands, legacy system modernization, data analytics and business intelligence, fintech disruption, risk management solutions.

The it bfsi market size has grown rapidly in recent years. It will grow from $167.23 billion in 2024 to $187.95 billion in 2025 at a compound annual growth rate (CAGR) of 12.4%. The growth in the historic period can be attributed to regulatory compliance and security demands, legacy system modernization, data analytics and business intelligence, fintech disruption, risk management solutions.

The it bfsi market size is expected to see rapid growth in the next few years. It will grow to $315.24 billion in 2029 at a compound annual growth rate (CAGR) of 13.8%. The growth in the forecast period can be attributed to advanced cybersecurity measures, AI and machine learning integration, cloud adoption for scalability, open banking initiatives, customer experience enhancement. Major trends in the forecast period include rise of digital banking, digital transformation continues, regulatory technology (RegTech), blockchain and distributed ledger technology, customer-centric solutions.

The forecast of 13.8% growth over the next five years reflects a slight reduction of 0.2% from the previous projection. This reduction is primarily due to the impact of tariffs between the US and other countries. Tariff pressures on imported server infrastructure and cybersecurity tools could slow digital transformation within BFSI institutions that rely on scalable IT platforms. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The it bfsi market size is expected to see rapid growth in the next few years. It will grow to $276.37 billion in 2028 at a compound annual growth rate (CAGR) of 12.8%. The anticipated growth in the forecast period can be attributed to advanced cybersecurity measures, the integration of AI and machine learning, the adoption of cloud technology for scalability, open banking initiatives, and a focus on enhancing customer experience. Major trends expected in this period include the rise of digital banking, ongoing digital transformation, the emergence of regulatory technology (RegTech), the utilization of blockchain and distributed ledger technology, and the development of customer-centric solutions.

The growing adoption of digital payment methods is anticipated to significantly boost the IT BFSI market in the future. Digital payment refers to transactions conducted through various electronic mediums. These payments lead to shorter wait times and enhance the in-store experience for customers, while also eliminating the need for customers to visit physical branches, as all banking processes are digitized. This shift replaces the bank's physical presence with a continuous online presence, facilitated by information technology. For example, in November 2023, Banked Ltd., a UK-based payments technology company, reported that US consumers are diversifying their financial practices, with 79.2% of respondents now using 2-5 payment methods monthly, a significant increase from 57% in 2022. Debit cards remain the most preferred option at 66.6%, followed by PayPal at 53%. Other popular payment methods include Venmo (16.4%), credit cards (51.4%), e-wallets (20.4%), Cash App (31.6%), and bank transfers (10%). Hence, the rising penetration of digital payment methods is expected to drive the growth of the IT BFSI market.

The increasing adoption of cloud computing is projected to further stimulate the growth of the IT BFSI market. Cloud adoption refers to the widespread implementation and use of cloud computing services by individuals, organizations, or industries to remotely store, manage, and access data and applications. Cloud-based platforms facilitate the rapid development and deployment of new financial products and services, enabling BFSI institutions to maintain a competitive edge. For instance, in December 2023, the European Commission (EC), the executive body of the European Union (EU) based in Belgium, stated that the adoption of cloud solutions in the EU increased by 4.2 percentage points in 2023, with 45.2% of enterprises utilizing cloud computing services, marking a notable rise compared to 2021. Therefore, the increasing cloud adoption is set to drive the growth of the IT BFSI market.

Technological advancement is a prominent trend gaining traction in the IT BFSI market. Leading companies in this sector are creating innovative technologies to enhance their competitive edge. For example, in August 2024, NPST, a digital banking and payments technology firm based in India, introduced a suite of seven AI-powered digital payment products at the Global Fintech Fest 2024. These solutions, which include the Risk Intelligence Decisioning Platform and EVOK 3.0 Payments Platform, aim to improve fraud prevention, streamline transaction processing, and deliver personalized payment experiences for banks, payment aggregators, and merchants.

Leading companies in the IT BFSI (Information Technology for Banking, Financial Services, and Insurance) market are directing their efforts towards developing innovative solutions, including Generative Pre-trained Transformer (GPT) technology, to cater to the needs of banks and financial institutions. GPTs are a type of large language model (LLM) that has gained prominence as a framework for generative artificial intelligence (AI). For example, in March 2023, Trustt, an India-based digital banking platform serving banks, non-banking financial companies (NBFCs), microfinance institutions (MFIs), and fintech firms, unveiled its First Major GPT Product Suite for the Banking Industry. This suite introduces personalized services, enhances operational efficiency through task automation, and leverages Generative Pre-trained Transformer (GPT) technology to improve natural language processing capabilities. In the IT BFSI market, this suite is expected to elevate customer experiences, streamline operational processes, and signify a significant adoption of advanced AI capabilities, thereby contributing to increased competitiveness and innovation within the sector.

In March 2022, Midpoint Holdings Ltd., a UK-based online international payments platform, acquired Blockchain World Ltd. for an undisclosed amount. This strategic move is intended to enhance Midpoint's consumer-facing platform in the digital asset space by integrating Blockchain World Ltd.'s blockchain technology. Blockchain World Ltd., also based in the UK, specializes in providing blockchain technology solutions for the BFSI (Banking, Financial Services, and Insurance) sector.

Major companies operating in the IT BFSI market include Microsoft Corporation, Amazon Web Services Inc., Intel Corporation, Accenture plc, International Business Machines Corporation, Oracle Corporation, SAP SE, Salesforce Inc., Hewlett Packard Enterprise, Tata Consultancy Services (TCS), Capgemini SE, NTT Data Corporation, Cognizant Technology Solutions Corporation, Infosys Limited, Fiserv Inc., DXC Technology, Atos SE, Wipro Limited, ConsenSys, FIS Global, Broadridge Financial Solutions Inc., Finastra, Genpact Limited, CA Technologies Inc., Akamai Technologies Inc., Mphasis Limited, Bitfury Group Limited, AlphaPoint, Mindtree Limited, Hexaware Technologies Ltd., Tech Mahindra Limited, Persistent Systems Limited, EPAM Systems Inc., Coforge Limited, Zensar Technologies Limited, Virtusa Corporation

North America was the largest region in the IT BFSI market in 2024. The regions covered in the it bfsi market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the it bfsi market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The IT BFSI market includes revenues earned by entities by providing services such as hardware support services, software and BPO services, and cloud services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

IT BFSI Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on it bfsi market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for it bfsi ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The it bfsi market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

• Markets Covered:1) By Service: Managed Services; Professional Services
• 2) By Technology: Cyber Security; Artificial Intelligence; Business Intelligence; ERP (Enterprise Resource Planning); HCM (Human Capital Management); ECM (Enterprise Content Management); CRM (Customer Relationship Management); Unified Communications
• 3) By Deployment: On-Premise; Cloud
• 4) By Organization Size: Small And Medium Enterprises; Large Enterprises
• Subsegments:
• 1) By Managed Services: IT Infrastructure Management; Security Management Services; Cloud Managed Services; Application Management
• 2) By Professional Services: Consulting Services; System Integration Services; Implementation Services; Support And Maintenance Services
• Companies Mentioned: Microsoft Corporation; Amazon Web Services Inc.; Intel Corporation; Accenture plc; International Business Machines Corporation; Oracle Corporation; SAP SE; Salesforce Inc.; Hewlett Packard Enterprise; Tata Consultancy Services (TCS); Capgemini SE; NTT Data Corporation; Cognizant Technology Solutions Corporation; Infosys Limited; Fiserv Inc.; DXC Technology; Atos SE; Wipro Limited; ConsenSys; FIS Global; Broadridge Financial Solutions Inc.; Finastra; Genpact Limited; CA Technologies Inc.; Akamai Technologies Inc.; Mphasis Limited; Bitfury Group Limited; AlphaPoint; Mindtree Limited; Hexaware Technologies Ltd.; Tech Mahindra Limited; Persistent Systems Limited; EPAM Systems Inc.; Coforge Limited; Zensar Technologies Limited; Virtusa Corporation
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery Format: PDF, Word and Excel Data Dashboard.