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Financial Analytics Market Analysis

The Financial Analytics Market size is estimated at USD 10.83 billion in 2024, and is expected to reach USD 19.31 billion by 2029, growing at a CAGR of 12.25% during the forecast period (2024-2029).

The ongoing technological advancements, the increasing need for cloud-based services, and the increasing demand for financial analytics solutions in various organizations and verticals are expected to boost the global financial analytics market.

• In this economic environment of rising volatility, growing uncertainty, and risk, financial planning, managing, and forecasting solutions provide the user with speed, agility, and foresight about the business to compete in the market better. Using financial analytics solutions, clients can better synthesize information, uncover market trends, and deliver insights to improve decision-making throughout the enterprise, which is driving growth in the global financial analytics market.
• The growing focus on data-driven financial decisions in various end-user verticals and the emergence of significant data demands solutions that tackle large amounts of data and provide valuable insights. Further, the development of enhanced technologies in business analytics and business intelligence domain and the extended focus on data transparency drive the demand for these solutions across various industries.
• Financial analytics solutions are increasingly being utilized by several industries for enhancing business operations. For instance, BFSI is a data-driven industry with massive volumes of data generated through ATM transactions, cash transactions, account opening, internet banking, online shopping, etc. The need to deliver customized and customer-centric services and offers drive the demand for analytics in the BFSI industry. Moreover, BI offers banking and other financial institutions a flexible and transparent approach to making better financial decisions and operations.
• The two predominant ways that AI-driven business intelligence software could bring value to financial institutions such as banks, investment firms, etc., are report generation and predictive analytics. For instance, SAS Visual Analytics claims to help banks provide self-service analytics and interactive reports to their lead staff using a combination of predictive analytics and natural language processing. Such software applications can help BFSI institutions develop strategies to gain customers or find customers who are less likely to default on loans.
• Further, with the significant growth in the market, emerging players are capitalizing on the opportunities by gaining substantial investment to enhance their product offerings and market presence. For instance, in September 2022, Sigmoid, a startup helping firms in the U.K., U.S., and Europe go through their data and derive better insights from it, raised USD 12 million following a strong year of growth. Firms operating in consumer goods and financial services categories are some of Sigmoid's largest customers.
• However, the risk of data breaches and cyberattacks are among the primary factor challenging the growth of the studied market. A lower consumer awareness, especially across the developing regions, also restraints the growth of the market.
• With the outbreak of COVID-19, this support for decision-making became more critical than ever. During the COVID-19 pandemic, financial analytics services rapidly evolved and transformed digital business models with new circumstances. Furthermore, the awareness regarding digital technologies also increased among consumers and businesses, which is expected to create a future favorable to the growth of the studied market.

Financial Analytics Industry Segmentation

Financial analytics is a concept that provides different views on the financial data of a business. It helps gain in-depth knowledge and, based on that, takes strategic actions to improve a business's overall performance. Financial analytics helps companies improve income statements and business processes. Various industries are using these solutions to improve business operations.

The financial analytics market is segmented by deployment type (on-premise, cloud), solution type(database management and planning, analysis and reporting, other types), end-user vertical (BFSI, healthcare, manufacturing, government, it and telecom, other end-user verticals), geography (North America[United States, Canada], Europe [United Kingdom, Germany, France, Rest of Europe], Asia-pacific [China, Japan, Singapore, India, South Korea, Rest of Asia-Pacific], Latin America[Mexico, Brazil, Rest of Latin America], and Middle East and Africa[United Arab Emirates, South Africa, Rest of Middle East and Africa]). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.