Financial Analytics Market

Financial Analytics Market Overview

With an estimated CAGR of 11.3%, the financial analytics market is showing vital signs of strong growth during 2022-2032.

“With the growing emphasis on data-driven financial decisions in many end-user sectors and the emergence of big data, demand for solutions that can handle enormous volumes of data and deliver important insights will play a pivotal role in boosting the analytics in finance domain.”

With the outbreak of COVID-19, this decision-making assistance has emphasized the requirement of data for financial analysis. With the COVID-19 pandemic, financial services are fast changing and transforming their digital business models.

However, concerns about data security are a major impediment to the global financial analytics market's growth. Furthermore, challenges with internet connectivity in developing economies are projected to stymie the expansion of global financial data analysis over the forecast period.

Which Applications are Driving Demand for Financial Analytics?

“Companies can prioritize investments in equity and corporate bond segment to capture revenue opportunities.”

Financial analytics plays a central role in the fundamental analysis of any business. Fundamental analysis of businesses implies investigating its financial statements and health, competitive advantages, management, competitors and markets.

Financial analytics assist businesses in implementing Business Intelligence and analytical tools to obtain accurate insights from the financial data that is required in formulating business decisions.

The Banking, Financial Services and Insurance (BFSI) sector is engaged in the financial analytics market for improving standard financial functions namely asset and liability, general ledger, budgetary control, payable, governance, receivable, profitability, compliance management and risk.

What are the Factors that are Boosting Financial Analytics Market?

“Rising necessity for real-time data for financial analysis, as well as enhanced Internet of Things (IoT) coverage, are important factors driving growth in the financial analytics market.”

The development of innovative business models such as business-to-employee, business-to-consumer and business-to-business has extended new opportunities for financial analytics market.

Additionally, due to technological development and its influence on business processes in an organization along with high degree of automation in financial department for different financial transactions, is expected to drive the market growth. Thus, with changing technological environment, modern approach to data analytics tools for finance is required across all types of industry verticals.

The financial analytics market is developing swiftly owing to enhanced technologies in business analytics and BI and extended focus on data transparency. Moreover, increasingly rising data intensity and use of financial analytics as competitive differentiator is driving the financial analytics market.

Demand for cloud analytics is the next big thing coming in the financial analytics market and extends enormous opportunity for financial analytics. The advent of cloud computing has pushed the financial planning to a new level and is expected to have long term impact on the financial analytics market. Companies such as host analytics Inc., offer cloud service based financial analytics to the business organizations.

Nikhil Kaitwade

Principal Consultant

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How is the Financial Analytics Market Segmented?

“Growing digital transitions across all end user verticals and rising demand from small and medium-sized businesses contribute majorly to the data analytics in financial sector.”

Types include data integration tools, Database Management System (DBMS), query, OLAP and visualization tools, reporting and analysis, analytical solutions, consulting and support services and others.

Application segment comprises of assets and liability management, payables management, budgetary control management, profitability management, receivables management, governance and risk and compliance (GRC) management.

Deployment type includes on-premise and cloud based. Industry verticals include banking, financial services and insurance (BFSI), healthcare and life science, consumer goods and retail, government, transportation and logistics, manufacturing, travel and hospitality, media and entertainment, telecommunication and IT, public sector and energy and utilities. 

How is the Competition Landscape in the Financial Analytics Market?

Some of the major financial data analytics companies are SAP A.G., International Business Machines Corporation (IBM), Oracle Corporation, TIBCO Software Inc., and MicroStrategy Inc., are active vendors in the financial analytics market.

These vendors offer financial analytics either in the format of individual solutions or incorporated into business intelligence suites.

The other companies in the financial analytics market include Deloitte Touche Tohmatsu Limited, Hitachi Consulting Corporation, Information Builders, Fair Isaac Corporation (FICO), Microsoft Corporation, Symphony Teleca Corp., Teradata Corp, Tableau Software Inc., Rosslyn Analytics Ltd. and SAS Institute Inc. among others.

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