Financial Analytics Market Size - By Component, By Deployment Model, By Organization Size, By Application, By End Use, Share, Growth Forecast, 2024 - 2032

Financial Analytics Market Size

The global financial analytics market size was valued at USD 10.9 billion in 2023 and is projected to grow at a CAGR of 11.6% between 2024 and 2032. Businesses and institutions are increasingly relying on data-driven insights, which is boosting the market. Real-time analysis of market shifts, investment patterns, and economic indicators helps with making informed decisions. With the growth of big data, financial analytics tools now offer accurate predictions, risk assessments, and strategic guidance. This enhances competitiveness and allows for proactive responses to changing financial landscapes. Additionally, the growing use of AI in the BFSI sector is expected to further drive market growth.
 

Government bodies like the Commodity Futures Trading Commission (CFTC) and the Financial Stability Oversight Council (FSOC) highlight the importance of AI in financial markets. They note that AI improves decision-making and risk management by providing accurate, data-driven insights. The focus on responsible AI use, including fairness, transparency, and explainability, shows the industry's need to optimize resource allocation and portfolio management.
 

Prescriptive analytics drives the financial analytics market by offering actionable solutions to complex financial problems. By combining predictive models with optimization techniques, it helps in making better decisions. Financial institutions, businesses, and investors benefit from personalized strategies that consider various factors and constraints. This approach improves portfolio management, risk assessment, and resource allocation, leading to better decisions. The demand for advanced insights is driving the adoption of prescriptive analytics, boosting the market's growth.
 

Financial Analytics Market Trends

Fintech analytics startups are driving significant growth in the financial analytics industry. For example, Dobin, which launched in Singapore in July 2023, shows how new companies use open finance and advanced data analytics to stand out. Dobin’s platform consolidates users' financial data and generates anonymized insights, providing valuable information.
 

This trend is common in the fintech sector, where startups use advanced analytics, AI, and open banking to innovate. These technologies help startups offer personalized financial services and deeper insights, challenging traditional players. The competition from these startups is pushing established financial analytics vendors to improve their solutions. As a result, financial institutions, including banks, are quickly adopting advanced data analytics tools to stay competitive. The growth of fintech analytics is expanding the market by encouraging the use of financial analytics solutions, including open banking platforms and data-driven insights.
 

Reliable financial analytics depend on high-quality data. However, financial data is often spread across different platforms and systems, making integration difficult. Incomplete or inconsistent data can distort results, affecting the effectiveness of analytics models. Proper data governance and validation processes are essential to address these issues and provide meaningful insights and predictions in the market.
 

Financial Analytics Market Analysis

Based on organization size, the market is categorized into SMEs and large enterprises. The large enterprises segment held a market share of over 65% in 2023. Partnerships are showing lucrative growth for large enterprises in the financial analytics market. Collaborations between established management consultancy and technology providers allow for the integration of cutting-edge analytics solutions into existing systems.
 

For instance, in July 2023, Capco, the worldwide technology and management consultancy specializing in financial services, and pyramid analytics, a prominent provider of business analytics and decision intelligence platforms, have joined forces. Their partnership aims to assist financial institutions in streamlining decision-making using AI-enhanced, automated, and collaborative insights?.
 

Based on end-use, the financial analytics market is divided into retail & consumer goods, BFSI, manufacturing, IT & telecommunications, government & public sector, transportation & logistics, healthcare, and others. The BFSI segment held a dominant market share of 25.8% in 2023. The BFSI sector is exerting significant dominance over the market. With vast volumes of financial data generated daily, the industry requires precise insights into informed decision-making, risk assessment, fraud detection, and customer experience enhancement.
 

Financial analytics solutions provide a competitive edge by enabling accurate predictions and strategic planning. As a result, the BFSI sector remains a driving force in the adoption and expansion of the market.
 

U.S. financial analytics market accounted for 70% of the revenue share in 2023. Major financial institutions, including banks, investment firms, and insurance companies, play a key role in financial analytics. These organizations focus on real-time decision-making, risk management, and compliance, all supported by financial analytics tools. The U.S. leads in fintech innovation, with a strong startup ecosystem that integrates advanced analytics into financial services. Strong regulatory support and a solid infrastructure also contribute to the U.S.'s market dominance.
 

Europe is close behind the U.S. in adopting financial analytics, driven by strict regulations like GDPR and a focus on transparency and risk management. Large banks and insurance companies in Europe use predictive and prescriptive analytics for portfolio management, fraud detection, and compliance reporting. Open banking regulations, such as PSD2 (Payment Services Directive 2), have increased the demand for financial analytics. The UK, Germany, and the Nordics are seeing growth in fintech startups, which drives market innovation.
 

The Asia-Pacific (APAC) region is rapidly growing in financial analytics due to the digitalization of financial services, the rise of fintech companies, and the use of big data and AI. Countries such as China, India, and Singapore lead in adopting financial analytics, driven by expanding banking services and regulatory requirements for data transparency. The growing middle class, increasing mobile payments, and a surge in e-commerce also boost the demand for real-time financial insights. APAC governments support fintech innovation, with Singapore becoming a hub for financial analytics startups.
 

Financial Analytics Market Share

The financial analytics industry features a diverse range of competitors, including established organizations. Major companies such as Microsoft, IBM, Oracle, Hitachi Vantara, SAS, TIBCO, and SAP lead the market, using their extensive technology infrastructure, brand recognition, and large customer bases to provide comprehensive solutions, and these companies collectively held a substantial market share of 49% in the Financial Analytics market in 2023.
 

Microsoft's Azure platform offers a strong cloud infrastructure that enhances financial analytics. Financial institutions use Azure to process large amounts of financial data in real-time. Additionally, Microsoft's AI and machine learning tools help organizations perform predictive and prescriptive analyses, which are crucial for risk management, fraud detection, and forecasting in finance. SAP provides industry-specific solutions for banking, insurance, and other financial sectors. The SAP financial services data platform allows institutions to gather, analyze, and gain insights from both structured and unstructured data.
 

Financial Analytics Market Companies

Major players operating in the financial analytics industry are:

• Domo
• Hitachi Vantara
• IBM
• Microsoft
• Oracle
• Rosslyn Data Technologies
• Salesforce
• SAP
• SAS
• TIBCO
   

Financial Analytics Industry News

• In July 2023, Bunker, a financial analytics platform headquartered in Singapore, has secured more than USD 5 million through successful pre-seed and seed funding rounds from a consortium of investors in the region. The startup intends to utilize the recently acquired capital to expedite its expansion and enhance its platform, which provides a wide array of comprehensive financial analytics solutions.
   
• In July 2023, Dobin, a company based in Southeast Asia, became the first company in the region to use open finance and advanced data analytics to give users a single view of their finances, create unique anonymized customer insights and empower users to get value from their financial data.
   

The financial analytics market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) from 2021 to 2032, for the following segments:

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Market, By Component

• Solution
  • Data integration tools
  • DBMS
  • Query, reporting & analysis
  • OLAP & visualization tools
• Services
  • Professional
  • Managed

Market, By Deployment Model

• On-premises
• Cloud

Market, By Organization Size

• SME
• Large enterprises

Market, By Application

• General ledger analytics
• Wealth management
• Budgetary control management
• GRC management
• Customer management
• Payables/receivables analytics
• Transaction monitoring
• Others

Market, By End Use

• Retail & consumer goods
• BFSI
• Manufacturing
• IT & telecom
• Government & public sector
• Transportation & logistics
• Healthcare
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Nordics
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • South Africa
  • UAE
  • Saudi Arabia