Global Analytics and Risk Compliance Solutions for Banking Market 2016-2020

Overview of the global analytics and risk compliance solutions market for the banking sector

Technavio’s market research analyst predicts the global analytics and risk compliance solutions market for the banking sector to grow steadily throughout the forecast period by registering a CAGR of more than 17% by 2020. Big data has become an important aspect of financial businesses, especially for retail marketing and banking sales. Many financial institutions like banks are working to boost transparency of various commercial banking products that are available to market participants. As a result, they are using several analytical tools to gather real-time data and make better business decisions. The introduction of cloud computing in the banking sector has improved and simplified information governance and management capabilities. It also provides a central administration and control for all resources, SLA-backed agreements, and vendor managed infrastructure. Banks are also increasingly adopting automated portfolio monitoring to stay updated with the credit flow of their client segment and take appropriate steps with immediate effect. Such initiatives also help banks reduce their risks of lending to enterprises, and generating higher revenues and profits. With the exponential growth in data and portfolio risk solutions, the use of analytics ad risk compliance solutions will increase significantly in the banking sector.

Banking and financial services are also focusing on improving their internal processes with respect to day-to-day reporting analytics. The incorporation of data analytics in banking businesses will help enhance product design, customer targeting, and agency management. Moreover, implementing BI solutions will be advantageous for banks as they can identify negative trends in costs and performances and identify the actual cause of the issue. Several analytics companies are also initiating tie-ups with banks to increase underwriting profits and help lower loss ratios.

Competitive landscape and key vendors

The new regulatory environment has compelled many banks to re-evaluate their business models and boost wealth management and cross-selling activities to increase revenue shares. Post the 2008 economic crisis, various regulatory bodies across the globe have modified their rules and regulations which have resulted in organizations incurring a high cost to implement updated GRC solutions. Owing to the growing focus on consumer protection, it becomes crucial for banks to have competitive, risk-based and value-added pricing models. With the increasing customer base, banks need to focus and invest more in data analytics to access the appropriate products and services that are specific to customers.

Leading vendors in the market are -

• CMO
• EMC
• IBM
• MetricStream
• Nasdaq

Other prominent vendors in the analytics and risk compliance solutions market for the banking sector include Check Point Software Technologies, LogicManager, MEGA International, NAVEX Global, Oracle, Protiviti, Rsam, SAI Global, SAP, SAS Institute, Software AG, and Thomson Reuters.

Geographical segmentation and analysis of the analytics and risk compliance solutions market for the banking sector

• Americas
• APAC
• EMEA

The Americas dominated the global market during 2015 and accounted for the largest market share. Much of the region’s growth is due to the adoption of big data technologies by several financial institutions in the US to improve risk management and customer target marketing abilities. Several banks in the region are also using big data to achieve real-time marketing in terms of communications, integration of the e-commerce platform with business activities, the establishment of a social network information database, and facilitating the small loans and microloans market.

Growth drivers, challenges, and upcoming trends: Emergence of social media as marketing and collaboration medium

Upcoming trends such as the emergence of social media as a marketing and collaboration medium are gaining popularity in the banking sector. Many banks are using social media platforms to collect customer feedback, resolve queries in real time, offer product updates, and drive insight generation and fraud investigation. Internet-based strategies also help overcome geographical restrictions that agents often face while providing services to the clients.

This report provides a number of factors contributing to the adoption, limitations, and opportunities of the analytics and risk compliance solutions market for the banking sector. It also offers an analysis of each factor and an estimation of the extent to which the factors are likely to impact the overall market growth.

 Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the global analytics and risk compliance solutions market for the banking sector?
• What are the key market trends impacting the growth of the global analytics and risk compliance solutions market for the banking sector?
• What are the challenges to market growth?
• Who are the key vendors in the global analytics and risk compliance solutions market for the banking sector?
• What are the market opportunities and threats faced by the vendors in the global analytics and risk compliance solutions market for the banking sector?
• Trending factors influencing the market shares of the Americas, APAC, and EMEA.
• What are the key outcomes of the five forces analysis of the global analytics and risk compliance solutions market for the banking sector?

Technavio also offers customization on reports based on specific client requirement.

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