The financial analytics market is expected to grow a Y-o-Y expansion rate of nearly 11%. Rising financial transaction volumes across key verticals has led to increased uptake of efficient financial analytics tools.
Forecast of Financial Analytics Market
Broad digitization, complicating nature of various financial transactions, increasing requirement to safeguard sensitive financial exchanges and heavy reliance on big data have all contributed enormously to the uptake of financial analytics throughout the 2015-2021 period of assessment.
With the industries experiencing the increase in scale of operations, it is no surprise that they are seeking approaches to ease financial operations. The requirement to efficiently manage and streamline financial dealings has become the need of the hour. With virtually every vertical shifting business online in certain areas, courtesy the pandemic, implementation of high-grade financial analytics platforms is sure to incline.
Growth Drivers of the Financial Analytics Industry
Every industry is at an end of revolution, with digitization and Industry 4.0 attaining operations. As the volume of digital financial transactions prosper, the requirement for designing robust security and workflow optimization platforms has developed.
Throughout the pandemic’s life cycle, there were extraordinary changes in human behavior. Working models changed dramatically, with key industries promised to switch permanently to the virtual space. Mobile transactions increased, with personal trading apps recording voluminous transaction frequencies. It was reported that in the United States alone, over a third of consumers increased the usage of online banking during the pandemic.
While the industry has managed to control the fall, it has become clear that the winds of change are not transient. Digital adoption rates are getting higher, a cookie less future looms large, and data governance has taken center stage.
Furthermore, financial institutions will need to rethink data architecture, data collection strategies, measurement models, and how they can responsibly benefit the data to target the right people, advertise their products, and personalize experiences across their digital properties. So, investments in advanced financial analytics platforms is becoming evident. This is expected to propel the demand for financial analytics
Financial Analytics Market benefits the E-Commerce Industry?
The e-commerce industry is stepping into a new era. After the primary phase wherein, companies concentrated highly on making their products and services available to potential customers via the internet, users are now trying to take a more comprehensive look at their implementations, one that correlates each sale to their entire operation. Eventually, a new breed of financial analytics tools is emerging.
Financial analytics tools allowing the businesses to interact such items as software depreciation or sales leads are becoming highly important. In fact, analytics has become a top management concern in many enterprises due to e-commerce advances mean that virtually every market segment faces more competition now than ever before.
The internet has declined many of the traditional geographical barriers that companies used to cover off competitors, so firms can market their goods and services across the globe.
To support the ever-increasing transaction volumes, prominent e-commerce giants are expected to take advantage of the available financial analytics tools in the market and streamline workflows, identify anomalies and frauds and ensure financial security.
Financial Analytics Usage in Wealth Management
Wealth management is an important key aspect for multiple industries, which is why the requirement to incorporate advanced financial analytics is rising. Frequently, the wealth management industry has been demonstrating accurate values and offering tailor-made services.
Coupled with stiff market competition, digitizing financial and wealth management services is generating better results for businesses. Wealth managers are expected to be able to serve modern clients effectively without a digitized operating model. This will enhance the advisory and non-advisory activities and service ever changing investment preferences
The existence of an enormous number of service providers delivers the global financial analytics market highly competitive. Key players are providing largely innovative software solutions, associated to rapid digitization of the global financial landscape. Additionally, major growth strategies such as mergers & acquisitions, collaborations and partnerships are also depending on the financial analytics.