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Financial Analytics Market

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  • 124 Pages
  • April 2021
  • Region: Global
  • IndustryARC
  • ID: 3820887

Financial Analytics Market Overview

The Global market for financial analytics is forecast to reach $9.9 billion by 2027, growing at a CAGR of 6.9% from 2022 to 2027. The market growth is attributed to the factors such as technological advancements, growing digitisation, growing demand from organisations for planning, budgeting, improving efficiency and others boost the market growth. The growing implementation of artificial intelligence (AI) increases performance and competitiveness by automation. It minimizes human prejudice and error induced through psychological or emotional factors and enhances the accuracy and conciseness of management knowledge through detecting either patterns or longer-term developments that cannot be readily detected. AI can be used to find the relation between world events and their impact on prices by using predictive analysis. This information is very useful for any kind of wealth investment. AI in financial services is used to protect the details of their customer. AI is playing a major role by quickly assessing the large algorithms to protect from fraudulent cases. AI is used to advise the accurate result. P2P organization analyses their potential customer’s behavior and detect all the risk in the cooperation with that particular customer. AI also helps in analyzing consumer’s details who doesn’t have past credit history or his credit history is destroyed.

Report Coverage

The report: “Financial analytics market - Forecast (2022-2027)” covers an in-depth analysis of the following segments of the financial analytics market.

By Components: Solution and Services

By Deployment Type: On Premise, Cloud

By Organization Size: Large Enterprises and Small & Medium Enterprises

By Application type: Regulatory Risk management, Credit Risk management, Model risk management, Revenue Growth management, Operation Management, Accounting and Financial reporting, Treasury management, Planning, Budgeting and Forecasting

By End Users: Banking, Financial Services, and Insurance (BFSI), IT and Telecommunication, Government, Energy and Utilities, Manufacturing, Automotive, Healthcare, Retail, Media and Entertainment, Transportation and Logistics, Others

By Geography: North America (U.S, Canada, Mexico), South America(Brazil, Argentina and others), Europe(Germany, UK, France, Italy, Spain, Russia and Others), APAC(China, Japan India, South Korea, Australia and Others), and ROW (Middle East and Africa)

Key Takeaways

  • The market growth is driven by factors such as increasing emphasis on data-driven financial decisions in various end-user verticals, rise of big data, challenging applications that can tackle vast volumes of data and others.
  • Moreover, growing digital transformations across all end users verticals and rising demand from small & medium enterprises also contributes to the market growth.
  • Being able to envision data is a valuable skill that traders use to assist them in making critical decisions about capital management, particularly when the financial market gets more competitive and more data needs to be evaluated. AR and VR contribute to this knowledge, making it simpler and quicker to imagine and coordinate vast volumes of data.

Financial Analytics Market Segment Analysis- By Deployment Type

Cloud deployment model held the highest market share of financial analytics in 2020 at 56.2% share. Moreover, it is anticipated to witness the significant market growth during the forecast period 2022-2027. Market development is attributed to factors such as scalability, data redundancy, accessibility and others. Cloud infrastructure provides easy on-demand network access that can be easily distributed and released with little maintenance effort or intervention between service providers. Information collected in the cloud is stored on servers that can be installed all around the world, making it much less vulnerable to breach physical data. Cloud services have the benefit of being private as they host other organizations, and it accept several specific entry points. Cloud services are not connected to any particular organization’s physical location or database. These multiple entry points effectively make it harder to hack data and systems and improve public cloud protection. Cloud scaling is relatively simple. If extra computing capacity and data storage is needed, it's as easy as modifying a cloud service provider subscription with no hardware and no scaling perimeters. All these factors propels the market growth.

Financial Analytics Market Segment Analysis- By End User Type

Financial analytics market is segmented into Large enterprise, Small and medium enterprise on the basis of organization size. Large enterprise segment held the highest market share in 2020 at 48.2% share. Moreover, Medium and small enterprise segment is anticipated to witness the significant market growth during the forecast period 2022-2027. Financial analytics provide help to form potential plans for the company. This helps to develop the corporate decision-making strategy. It helps to concentrate on assessing and controlling the real assets such as cash and equipment in the company. It offers a detailed look into the financial condition of the company and increases cash flow, competitiveness and valuation of the corporation. Financial analytics includes predictive sales analytics, consumer profitability analytics, product profitability analytics, cash flow analytics, value-driven analytics, and shareholder value analytics. These are powerful resource that many small, medium and large company can utilize to track and monitor its success. This also supports the organization’s transition to changes impacting its operations. Consequently with the growing adoption of financial analytics among the organizations leverages appositive impact on the market growth thereby boosting the market growth.

Financial Analytics Market Segment Analysis- By Geography

North America region held the highest market share and is anticipated to have significant market growth during the forecast period 2021-2026 at 5.9% CAGR. The market growth is owing to technological developments, presence of developed countries and key manufacturers in this region. Moreover, growing automotive, BFSI, healthcare, manufacturing and other verticals in this region are dominating the financial analytics market. Furthermore, developing creative market strategies such as company-to-employee, business-to - consumer, and business-to - business also broadened new financial analytics possibilities. It's impact on business processes in an enterprise is projected to drive market development, coupled with high degree of automation in the finance department for various financial transactions. Consequently, with the increasing technical framework, a new approach to the study of financial data is expected in all forms of vertical. In February 2019 IBM entered into a partnership with Watson to improve safeness of workers in dangerous conditions. The partnerships results in new innovations that would harness the capabilities of IoT technologies in combination with the current IBM enterprise wealth management program Maximo. Such partnerships leads to boost in the market growth.

Financial Analytics Market Drivers

Rising penetration of Cloud technologies

Owing to the introduction of cloud-based technologies, demand for the financial analytics system is growing. Cloud driven technologies support stable data management and produce result-oriented production. However, these programs improve the efficiency of the business by upgrading details in real-time.

Growing implementation of IOT

IoT helps products and services to be more customized. This mean that the products and services can be much more oriented on the desires and expectations of the consumer. IoT helps businesses to collect large volumes of consumer data in real time, enabling a more personal view of the client. IoT definitely implies a change in the data analytics domain. For instance, using mobile geolocation details in real time as an external insight into the predictive risk analysis of the credit card. This fraud identification is achieved by comparing the position details of the account manager to the position of the transaction.

Financial Analytics Market Challenges

Security concerns

Information management and protection at the top rates of companies are attracting a lot of traction. Organizations tackle the data with unparalleled quantity, of all sorts. The data emerges from a number of internal and external channels, rendering it impossible for many companies to actually recognize where this data comes from, how it moves, and how it is handled. Consequently, security factors plays a major role thereby act as restrain to the market growth.

Financial Analytics Market Landscape

Partnerships and acquisitions along with product launches are the key strategies adopted by the players in the financial analytics market. As of 2020, the market for financial analytics market is consolidated with the top players including IBM Corporation, SAP, Amazon Web Services, Micro Focus, Dell EMC, Microsoft, Ave Point, Apple Inc., Teradata, Symantec, and among others.

Acquisitions/Technology Launches/Partnerships

  • In June 2019, Refinitiv entered into a partnership with Trulioo to help drive financial inclusion and fight financial crime. The partnership seeks to provide creative technologies that can support financial companies across the globe minimize fraud and financial abuse by monitoring billions of consumers digitally while adhering to anti-money laundering.
  • In November 2019, DataRobot and Kx entered into a partnership. The partnership is transforming how financial institutions leverage market data and are creating investment strategies driven by AI. Kx's data collection and development approaches are combined alongside hundreds of efficient, time-aware DataRobot machine learning algorithms, removing obstacles to scale-building and deployment of AI-driven investment decision workflows.

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Table of Contents

1. Financial Analytics Market - Overview
1.1. Definitions and Scope
2. Financial Analytics Market - Executive summary
2.1. Market Revenue, Market Size and Key Trends by Company
2.2. Key Trends by type of Application
2.3. Key Trends segmented by Geography
3. Financial Analytics Market
3.1. Comparative analysis
3.1.1. Product Benchmarking - Top 10 companies
3.1.2. Top 5 Financials Analysis
3.1.3. Market Value split by Top 10 companies
3.1.4. Patent Analysis - Top 10 companies
3.1.5. Pricing Analysis
4. Financial Analytics Market Forces
4.1. Drivers
4.2. Constraints
4.3. Challenges
4.4. Porters five force model
4.4.1. Bargaining power of suppliers
4.4.2. Bargaining powers of customers
4.4.3. Threat of new entrants
4.4.4. Rivalry among existing players
4.4.5. Threat of substitutes
5. Financial Analytics Market -Strategic analysis
5.1. Value chain analysis
5.2. Opportunities analysis
5.3. Product life cycle
5.4. Suppliers and distributors Market Share
6. Financial Analytics Market - By Deployment (Market Size -$Million / $Billion)
6.1. Market Size and Market Share Analysis
6.2. Application Revenue and Trend Research
6.3. Product Segment Analysis
6.3.1. On Premise
6.3.2. Cloud
6.3.3. Hybrid
6.3.4. Mobility
7. Financial Analytics Market - By Type (Market Size -$Million / $Billion)
7.1. Data Integration
7.2. DBMS
7.3. OLAP & Visualization Tools
7.4. Reporting & Analysis
7.5. Analytical Solutions
7.6. Consulting & Support
7.7. Others
8. Financial Analytics Market - By Application (Market Size -$Million / $Billion)
8.1. Regulatory Risk management
8.2. Credit Risk management
8.3. Model risk management
8.4. Revenue Growth management
8.5. Operation Management
8.6. Accounting and Financial reporting
8.7. Treasury management
8.8. Planning, Budgeting and Forecasting
9. Financial Analytics - By Geography (Market Size -$Million / $Billion)
9.1. Financial Analytics Market - North America Segment Research
9.2. North America Market Research (Million / $Billion)
9.2.1. Segment type Size and Market Size Analysis
9.2.2. Revenue and Trends
9.2.3. Application Revenue and Trends by type of Application
9.2.4. Company Revenue and Product Analysis
9.2.5. North America Product type and Application Market Size U.S. Canada Mexico Rest of North America
9.3. Financial Analytics - South America Segment Research
9.4. South America Market Research (Market Size -$Million / $Billion)
9.4.1. Segment type Size and Market Size Analysis
9.4.2. Revenue and Trends
9.4.3. Application Revenue and Trends by type of Application
9.4.4. Company Revenue and Product Analysis
9.4.5. South America Product type and Application Market Size Brazil Venezuela Argentina Ecuador Peru Colombia Costa Rica Rest of South America
9.5. Financial Analytics - Europe Segment Research
9.6. Europe Market Research (Market Size -$Million / $Billion)
9.6.1. Segment type Size and Market Size Analysis
9.6.2. Revenue and Trends
9.6.3. Application Revenue and Trends by type of Application
9.6.4. Company Revenue and Product Analysis
9.6.5. Europe Segment Product type and Application Market Size U.K Germany Italy France Netherlands Belgium Spain Denmark Rest of Europe
9.7. Financial Analytics - APAC Segment Research
9.8. APAC Market Research (Market Size -$Million / $Billion)
9.8.1. Segment type Size and Market Size Analysis
9.8.2. Revenue and Trends
9.8.3. Application Revenue and Trends by type of Application
9.8.4. Company Revenue and Product Analysis
9.8.5. APAC Segment - Product type and Application Market Size China Australia Japan South Korea India Taiwan Malaysia
10. Financial Analytics Market - Entropy
10.1. New product launches
10.2. M&A's, collaborations, JVs and partnerships
11. Financial Analytics Market Company Analysis
11.1. Market Share, Company Revenue, Products, M&A, Developments
11.2. IBM Corporation
11.3. SAP
11.4. Amazon Web Services
11.5. Micro Focus
11.6. Dell EMC
11.7. Microsoft
11.8. Ave Point
11.9. Apple Inc.
11.10. Teradata
11.11. Company 10
*Financials would be provided on a best efforts basis for private companies