Data Analytics in Banking Market Expected to Reach $28.11 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Data Analytics in Banking Market," The data analytics in banking market was valued at $4.93 billion in 2021, and is estimated to reach $28.11 billion by 2031, growing at a CAGR of 19.4% from 2022 to 2031.

The rise of the worldwide data analytics in banking 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 banking analytics. Furthermore, data analytics has aided banks and financial institutions in predicting incoming and departing financial positions as well as consumer flow, which is propelling the data analytics in banking market forward.

Furthermore, as it is increasingly acknowledged as a success element for numerous financial organizations, the use of data analytics in banking 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 data analytics software is restraining the growth of data analytics in banking market trends.

By application, the customer management segment acquired major share of the data analytics in banking 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.

Region wise, North America dominated the market in 2021. This is attributed to the fact that the demand for data analytics in banking and financial industry software has increased, as a result many regulations and policies are imposed by the North American governments for data protection and security. Moreover, data analytics in banking trends are highly fragmented in the North America region, owing to large number of market players indulged in various development such as partnership, acquisition, and collaboration.

The demand for data analytics in banking 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, data analytics in banking market growth is augmented to the fact that banks are increasingly adopting this system. Thus, these factors promoted the growth of the data analytics in banking industry during the pandemic situation.

KEY FINDINGS OF THE STUDY

• By component, the solution segment led the highest data analytics in banking market share, in terms of revenue in 2021.
• On the basis of application, the customer management 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 data analytics in banking market analysis include as Adobe Inc., Alteryx, Inc., Amazon Web Services, Inc., Aspire systems, Dell Inc., Google, IBM, Microsoft Corporation, Mu Sigma, Oracle, SAP SE, SAS Institute Inc., Sisense Inc., Tableau Software, LLC (Salesforce), Zoho Corporation Pvt. Ltd, KNIME AG, and TIBCO Software Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.