Business Analytics in FinTech Market Expected to Reach $22.9 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Business Analytics in FinTech Market By Component (Solution, Service), By Deployment Mode (On-Premise, Cloud), By Type (Predictive Analytics, Prescriptive Analytics, Descriptive Analytics, Others), By Application (Fraud Detection And Prevention, Customer Management, Sales And Marketing, Workforce Management, Others), By Organization Size (Large Enterprises, Small And Medium Sized Enterprises): Global Opportunity Analysis And Industry Forecast, 2022-2031". The business analytics in fintech market was valued at $3.1 billion in 2021, and is estimated to reach $22.9 billion by 2031, growing at a CAGR of 22.4% from 2022 to 2031.

The rise of the global business analytics in fintech industry has been fueled by a significant increase in illegal activities such as accounting fraud, money laundering, and payment card fraud. These fraudulent behaviors are discovered using a machine learning algorithm, which leads to an increase in business analytics. Furthermore, business analytics has aided fintech companies and financial institutions in predicting incoming and departing financial positions as well as consumer flow, which is propelling the business analytics in fintech market forward.

Furthermore, as it is increasingly acknowledged as a success element for numerous financial organizations, the use of business analytics in fintech has risen over time to provide improved marketing strategies and effective information. Data analytics' capacity to identify various hazards and avoid potential bad outcomes have contributed to its growth acceptance in recent years. However, the scarcity of trained personnel and challenges with deployment of business analytics software is restraining the growth of business analytics in fintech market trends.

Further, fintech companies were increasingly leveraging advanced analytics techniques such as machine learning and artificial intelligence to extract insights from large and complex datasets. These technologies enable more accurate predictions, risk assessments, fraud detection, and customer behavior analysis. Furthermore, fintech companies were exploring alternative data sources beyond traditional financial data to assess creditworthiness and risk. This includes using data from social media, online behavior, and other unconventional sources to better understand customers' financial behaviors. Moreover, analytics-driven fraud detection techniques were becoming more sophisticated. Fintech firms used machine learning algorithms to detect patterns and anomalies in transactions, helping to prevent fraudulent activities.

By application, the customer management segment acquired major share of the business analytics in fintech market size. This is attributed to fact that customer analytics are being prioritized by major market participants in order to have a better understanding of consumer demand and preferences. Furthermore, the use of customer analytics software is fueled by increased rivalry among businesses to deliver higher customer satisfaction and a more tailored experience.

By region, Asia-Pacific is expected to be the fastest growing region in business analytics in fintech market. This is attributed to the fact the use of business analytics across the Asia-Pacific region to solve a wide variety of business problems and other challenges has been growing. In addition, many financial institutions in Asia-Pacific are adopting predictive analytics for increasing the revenue of the organizations and improving decision making capabilities of the organization.

The demand for business analytics in fintech has increased considerably during the COVID-19 pandemic. This is attributed to surge in importance for statistical approach for customers to predict future financial positioning and avoid frauds. Moreover, business analytics in fintech market growth is augmented to the fact that fintech companies are increasingly adopting this system. Thus, these factors promoted the growth of the business analytics in fintech industry during the pandemic situation.     

Key Findings of the Study

• By component, the solution segment led the highest business analytics in fintech market share, in terms of revenue in 2021.
• By application, the fraud detection & prevention segment is expected to exhibit the fastest growth rate during the forecast period.
• Region wise, North America generated the highest revenue in 2021.  

The key players operating in the business analytics in fintech market analysis include as Alteryx, Inc., Amazon Web Services, Inc., Aspire systems, Dell Inc., Google, IBM, Knime AG, Microsoft, Mu Sigma, Oracle, SAP SE, SAS Institute Inc., Sisense Inc., Tableau Software, LLC (Salesforce), Zoho Corporation Pvt. Ltd, TIBCO Software Inc., and Finn AI. These players have adopted various strategies to increase their market penetration and strengthen their position in the fintech and business analytics industry.