Market Trends of Financial Services Application Industry
BI & Analytics Application is Expected to Witness High Growth
- The financial sector is one of the most data-intensive sectors in the global economy. Banks and other financial institutions include customer data, such as transactions, payments, withdrawals, and sales points, which they cannot use to gain insights.
- In the financial industry, business intelligence helps the organization maximize its potential, products, and services. Real-time analytics tools like Power BI help financial firms make accurate decisions.
- BI solutions can effectively add value in KPI measurement, knowledge management, analytics, reporting, and collaboration. Further, BI tools are also utilized as a trigger for notifying specific events. Additionally, the market witnessed increased adoption of self-service analytics tools, wherein end users can achieve insights with minimal technical knowledge.
- Using BI in the financial sector makes business easier and gives a competitive advantage over other institutions. Banks, credit card companies, insurance agents, etc., must constantly add new customers to their base and expand their market share. Business intelligence gives companies the information needed to reach their goals.
- Big data analytics is also considered an integral application for business intelligence in the industry. It helps uncover patterns, trends, and correlations in large amounts of raw data to help companies make data-informed decisions. Hence, a rise in the overall adoption of Big data analytics is anticipated to make the market witness exponential growth during the forecast period.
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North America to Hold a Significant Market Share
- In the United States, there lies a growing trend in terms of adopting the latest technologies, including artificial intelligence by banks and financial organizations to offer more personalized services to customers.
- The country is one of the significant markets for financial technology adoption, mainly due to being a pioneer in FinTech, further buoyed by the presence of major financial giants in the region.
- Businesses worldwide need systems that can use customer data to exhaustively analyze usage patterns, demand peaks, and consumption changes and arrive at a decision. It boosts the need for a system that handles big data effectively, and this demand for business analytics tools drives the market forward. The growing adoption of financial service applications increased the sophistication of decisions being taken in organizations, providing increased reassurance to stakeholders.
- Furthermore, digital transaction volumes are increasing as more people open accounts and manage their finances online. With that growth comes more sophisticated fraud, such as synthetic identity fraud and account takeover, impacting businesses and consumers.
- Mastercard introduced an enhanced Open Banking account opening solution to advance its vision of providing safe, simple, and intelligent choices in payments and financial services. This innovation consolidates account holder verification and identity insights into a single API to help businesses meet customer needs for security and transparency.
- In October 2023, CLEAR, the secure identity company, declared its first product in financial services with one of the only reusable Know Your Customer (KYC) solutions. CLEAR's one-click KYC solution primarily delivers a frictionless consumer experience that is mainly aimed at helping financial services companies combat the traditional drop-off in signups, especially when customers are required to complete cumbersome KYC checks.
- Moreover, in May 2023, Stripe announced a strategic partnership with Microsoft to help North American Business to accept payments directly in Microsoft Teams. Stripe would power Teams Payments, allowing meeting hosts to take real-time card payments during virtual classes, appointments, events, and many more. Businesses can now set advance payment through Stripe as a requirement to join a Teams session.
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