- The IT BFSI Market is estimated to reach USD 231.33 Billion by 2026, at a CAGR of 12.3% during the forecast period
- The market size large organization accounts for a larger share of 63.8% of the market in 2018
- APAC is forecasted to be the fastest growing market with the highest rate of 13.1% during the forecast period
Banking has been around since the first currencies were introduced - perhaps even before that, in some form or another. Banking is an industry that handles cash, providing credit, and other financial offerings such as investments, mortgages, locker services to store ornaments and documents etc. It receives money from those who want to save in the form of deposits and it lends money to those who need it.
Banking is one of the significant drivers of the world’s economy which provides the liquidity needed for individuals and businesses to invest for the future. Bank loans and credit mean families don't have to save up before going to start new business or buying a house. To start hiring immediately and build for future demand and expansion, Organizations use loans facility.
Rising competition both global and local and stringent government regulations are some major factors driving Banks to adopt IT solutions, as they not only help in the day-to-day process but also ensure that enterprises comply with government regulations.
The banking industry is undergoing a fundamental shift, one driven by ever increasing competition from Financial Technology companies, changing business models, escalating regulation and compliance pressures, and disruptive technologies.
The emergence of FinTech/non-bank startups is changing the competitive landscape in financial services, forcing traditional institutions to rethink the way they do business. Regulatory and compliance requirements become more restrictive because the data breaches become prevalent and privacy concerns intensified. Customer demands are evolving as consumers seek round-the-clock personalized service.
Cybercrime damages all over the world predicted to cost up to $8 trillion annually by 2022, not getting caught in the landslide is a matter of taking in the right information and acting on it quickly. With the threat landscape always changing, understanding how cyber-attacks are evolving and which security controls and types of training work is going to be crucial:
AI in Fintech refers to the theory and development of computer systems capable of performing finance-related tasks that usually require human intelligence. It is an application of AI technology enabled for the financial sector in various forms such as designing investment strategies, anomaly detection with pattern recognition, voice recognition, text mining, semantic analysis, and market analysis with data mining.
The overall AI market is expected to grow from USD 1.34 billion in 2017 to USD 7.31 billion by 2022.
To offer differentiated and enhanced services to their customers through the computing power of machines, BFSI leaders are likely to invest heavily in AI technologies in near future.
"Open" refers to the capability of companies to expose their services to the outside world, so that external partners or even competitors can use these services to bring added value to their customers. This trend is possible by the technological evolution of open APIs (Application Programming Interfaces), which are the digital ports making this communication possible.
Together companies, interconnected through open APIs, form a true API ecosystem, offering best-of-breed customer experience, by combining the digital services offered by multiple companies.
From the banking point of view, the Open Business model enabled by APIs promises much. We’ve found that banks that use Open Banking will profit from a potential 20 percent more revenue.
Strategically implemented cloud computing services allow banks to utilize resources in a highly flexible, cost effective, reliable and efficient manner with the help of data analytics, data storage, and batch processing techniques. Further, the cloud technology also helps the banking industry to improve returns, operational efficiency and the client servicing department. Some cloud computing applications in banking and finance are Hosting, Payment Gateway, ERP and CRM.
BI helps organizations to make better decisions and forecasting by organizing and analysing historical data. This could be internal data from the organization’s departments or from external sources such as social media channels, marketing data, customer feedback or macroeconomic information. With the help of BI, users can access business data and perform queries to generate insights using this data. It equips business users with easy-to-use data exploration, data preparation, appropriate analytics, and data visualization tools and techniques.
The overall BI market is expected to grow from USD 3.33 billion in 2017 to USD 4.82 billion by 2022.