Data Analytics in Banking Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Data Analytics in Banking Market is projected to expand significantly, growing from USD 13.29 Billion in 2025 to USD 38.74 Billion by 2031, achieving a CAGR of 19.52%. Defined as the systematic computational examination of financial records, data analytics allows banks to identify patterns, correlations, and trends that guide strategic decision-making. The market is primarily fueled by the urgent necessity for robust risk management frameworks and the rising demand for personalized customer experiences, both of which require institutions to process massive volumes of transactional information rapidly. Furthermore, strict regulatory compliance mandates force financial institutions to implement precise analytical measures to ensure transparency and prevent financial crimes, serving as a fundamental catalyst for widespread industry adoption.

Despite these growth drivers, a major challenge impeding market expansion is the difficulty of merging modern analytical tools with fragmented legacy IT infrastructures, often resulting in data silos and governance issues. This operational disconnect is highlighted by the industry's struggle to formalize data protocols; according to the American Bankers Association, in 2024, 71 percent of bank marketers reported that their institutions lacked a written or documented customer data strategy. Such gaps in strategic planning prevent banks from fully utilizing their data assets, thereby slowing the overall maturity of the global analytics market.

Market Drivers

The integration of Artificial Intelligence (AI) and Machine Learning (ML) serves as a primary engine for the market, empowering institutions to shift from retrospective analysis to predictive intelligence. Banks leverage these technologies to process unstructured datasets, facilitating automated credit scoring and algorithmic product recommendations. This technological shift is evidenced by high adoption rates; according to NVIDIA’s 'State of AI in Financial Services: 2024 Trends' report from February 2024, 91 percent of financial services companies were assessing or using AI to drive innovation and operational resilience. Such widespread integration necessitates robust analytics platforms capable of handling complex models, fueling market growth as financial entities strive to maintain competitive advantages through data-driven foresight.

Simultaneously, the escalating demand for real-time fraud detection compels banks to deploy modern analytical solutions capable of identifying anomalies within milliseconds. As transaction volumes rise, traditional rule-based systems are proving inadequate against evolving cyber threats, necessitating the use of behavioral analytics and pattern recognition. The effectiveness of these measures is quantifiable; according to Visa’s 'Spring 2024 Threats Report' from March 2024, the company’s analytics capabilities helped block $40 billion in fraudulent activity during the previous year. To support these security measures and broader digital infrastructure, massive capital is being directed toward technological fortification, with JPMorgan Chase allocating approximately $17 billion to technology in 2024, underscoring the critical role of data-centric investment.

Market Challenges

A significant challenge impeding market expansion is the difficulty of integrating modern analytical tools with fragmented legacy IT infrastructure, which creates substantial data silos and governance voids. Financial institutions often rely on aged core systems that cannot efficiently communicate with newer, data-intensive applications, making it nearly impossible to aggregate the real-time, unified datasets required for advanced analytics. This architectural disconnect prevents banks from seamlessly accessing the transactional information needed for critical functions such as risk modeling and personalized customer targeting. Consequently, the inability to establish a cohesive data environment limits the scalability of analytics initiatives, forcing institutions to rely on manual, error-prone processes that negate the efficiency and speed promised by modern analytical solutions.

This technical barrier directly hampers market growth by elevating the operational risk and expense associated with digital transformation projects. The complexity of layering sophisticated analytics on top of incompatible legacy frameworks often leads to prolonged implementation timelines and ballooning costs, deterring institutions from fully committing to necessary upgrades. According to the Conference of State Bank Supervisors, in 2024, nearly 80 percent of community bankers identified technology implementation and costs as a top internal risk to their organizations. As banks delay these critical technology updates to avoid disruption and financial exposure, the broader adoption of global data analytics stalls, preventing the market from reaching its full potential.

Market Trends

The expansion of open banking and API-driven data ecosystems is fundamentally reshaping the market by transitioning financial institutions from closed, proprietary data silos to collaborative, interoperable networks. This trend allows banks to securely share customer-permissioned data with third-party providers, fostering the development of innovative financial products and streamlined payment services that extend beyond traditional banking interfaces. The acceleration of this ecosystem is evident in the rapid uptake among commercial entities seeking efficiency; according to Mastercard’s 'Open banking: The trust imperative' white paper from December 2024, 85 percent of B2B respondents reported currently using open banking solutions to enhance their financial operations. This high adoption rate underscores the market's shift toward platform-based models where data fluidity drives competitive differentiation.

The integration of generative AI for hyper-personalization represents a critical evolution in how banks utilize data, moving beyond static predictive scores to dynamic, conversational customer engagement. Unlike traditional analytics that categorize users into broad segments, generative models analyze individual transaction histories and behavioral nuances to construct bespoke financial advice and automated, human-like interactions in real time. This technological commitment is intensifying as institutions recognize the necessity of AI for operational excellence and customer retention; according to NTT DATA’s 'Intelligent Banking in the Age of AI' report from February 2025, 58 percent of banking organizations have fully embraced the transformative potential of generative AI. Such widespread implementation highlights the sector's focus on leveraging advanced algorithms to deliver the tailored, responsive experiences modern consumers demand.

Key Players Profiled in the Data Analytics in Banking Market

• International Business Machines Corporation
• SAP SE
• Oracle Corporation
• Microsoft Corporation
• Google LLC
• Amazon Web Services, Inc.
• TIBCO Software, Inc.
• Hewlett Packard Enterprise Co.
• SiSense, Inc.
• Mu Sigma, Inc.
• Dell, Inc.
• Alteryx Inc.
• Teradata Corporation
• Wipro Ltd.
• SAS Institute, Inc.

Report Scope

In this report, the Global Data Analytics in Banking Market has been segmented into the following categories:

Data Analytics in Banking Market, by Deployment Type:

• On-Premises
• Cloud

Data Analytics in Banking Market, by Type:

• Descriptive Analytics
• Diagnostic Analytics
• Predictive Analytics
• Prescriptive Analytics

Data Analytics in Banking Market, by Solution:

• Risk Management (Credit Risk Assessment
• Fraud Detection and Management
• Stress Testing
• others)
• Customer Analytics
• Portfolio Management Analytics
• Trading Analytics

Data Analytics in Banking Market, by End User:

• Sell Side Firms
• Buy Side Firms

Data Analytics in Banking Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Data Analytics in Banking Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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