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The financial service application market is estimated to grow by USD 60.9 billion at a CAGR of 8.12% between 2023 and 2028. The digitalization of the financial sector is gaining momentum due to increasing government initiatives and the advantages it offers. Digital payments, in particular, have become increasingly popular, providing convenience, speed, and security to users. According to recent reports, FinTech spending is projected to reach new heights, driven by the growing demand for innovative financial solutions. This trend is expected to continue as more individuals and businesses embrace digital transactions. The benefits of digital payments are manifold, including reduced transaction costs, real-time processing, and increased financial inclusion. As a result, traditional financial institutions are responding by investing in digital technologies and partnerships with FinTech companies to stay competitive in the evolving financial landscape.
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The market is rapidly evolving with advancements in digital technology adoption and cloud-based services for small and medium enterprises (SMEs). It offers robust business analytics tools and portfolio management solutions crucial for the banking and financial sector, facilitating business transaction processing and insurance data exchange. These applications enhance customer experience through online solutions and real user monitoring, ensuring efficient financial data management and enterprise IT integration. Security remains paramount with measures against cyberthreats in both cloud deployment and on-premises setups. Comprehensive training & support services and operations and maintenance offerings further bolster reliability and performance. As financial institutions embrace digital transformation, the market continues to expand, driven by a focus on operational efficiency and enhanced service delivery. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing government initiatives to digitalize the financial sector are notably driving market growth. One of the key factors which are expected to boost the demand for financial service applications during the forecast period is the growing government commitment to digitize the financial industry. However, the threat of data breaches is always a major concern, which tends to drive the adoption of financial services applications across various enterprises.
Several nations across the world are making significant investments in digitalization to improve their work efficiency and flexibility across financial institutions. For instance, in July 2020, the National Bank of Canada corporate venture capital arm, NAventures, announced that it had invested USD 11 million in Flinks, a data company that enables businesses to connect their users with financial services, to support the company expansion in data connectivity and digitization in the financial services sector. Hence, these factors are expected to contribute to the growth of the market during the forecast period.
The rise in customer awareness about finance and digitization is an emerging trend in the market. Disruptions in the traditional banking system have made it necessary for financial institutions to retain customers by embracing digital technologies. The tech-savvy millennials are opting for various IoT platforms to execute day-to-day transactions. Financial services from Amazon, Google, Apple, Square, or PayPal are being built into traditional banking networks. Millennials opt for digitized technology as their financial services requirements include payments, investments, remittances, crowdfunding, consumer banking, and lending through FinTech platforms.
For instance, SimpleTax helps customers file income-tax returns. The software automatically updates the regulations in the tax system. SimpleTax is certified by the Canada Revenue Agency. The software has to undergo thousands of tests every year to ensure that it is user-friendly and 100% accurate. SimpleTax is an innovative product that identifies and mitigates the problems that customers face in filing their tax returns. Therefore, such advancements among customers are expected to drive the growth of the market during the forecast period.
Privacy and security concerns are major challenges impeding market growth. The concept of online payment is gradually becoming a very popular mode of payment. Payment service providers gather personal data and information about customers so that they can customize advertising messages and target key audiences. Such practices help service providers collect data on customer profiling, behavior, and data mining. However, the indiscriminate use of this data can infringe on customer privacy.
Location-based services also have privacy concerns because such offerings and services operate based on real-time, geo-based information. The data collected from smartphone devices is processed and stored by vendors and so remains open to abuse. As smartphones are used in monetary transactions in real-time, data theft (which is common in the virtual world) can lead to financial losses for consumers and may cause a loss of reputation for service providers. Such risks make consumers averse to online transactions and pose a potential threat to the market for IoT platforms which may hinder the growth of the global market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Finastra - The company offers a wide range of pre-integrated solutions which includes retail banking, transaction banking, lending, and treasury and capital markets. The key offerings of the company include financial service applications.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the large enterprises segment will be significant during the forecast period. There is a very high adoption of online payment among large enterprises owing to the generation of many transactions. Companies operating in the banking, financial services, insurance (BSFI), IT, and manufacturing sectors are the major contributors to this segment.
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The large enterprise segment was valued at USD 60.10 billion in 2018. The intraregional cross-border banking activity is intensifying globally. This leads to an increase in the need for financial service applications. This, in turn, leads to an increase in the adoption of financial service applications during the forecast period. Modern vending machines are equipped with contactless and card-based payments. This is a major factor driving the growth of the market. Most market revenue is generated by large enterprises as they are more inclined toward technologically advanced services such as payment gateways and mobile wallets. Thus, the rapid adoption of online transactions in large enterprises is expected to propel the growth of the global market during the forecast period.
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North America is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America accounted for the largest share of the global market in 2022. Rapid growth in digital connectivity and the penetration of prominent vendors are driving the growth of the market in the region. The rise in numerous online trading and finance platforms, technological innovations, changes in the business and finance environment, and the presence of local and global players are the key factors that are expected to fuel the growth of the market during the forecast period.
Moreover, many banks and financial institutions in North America have started adopting IoT technology. In 2020, Bank of America, a multinational banking and financial services institution based in the US, expanded its mobile wallet capabilities for corporate clients in EMEA and APAC. The expansion of mobile wallet capabilities has allowed bank clients to use Corporate Travel and Purchasing Cards, and now they will be able to use Apple Pay and Google Pay to make and manage card purchases. Thus, owing to such factors the regional market is expected to grow during the forecast period.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
Personal Finance Software Market: Analysis North America, APAC, Europe, South America, Middle East and Africa - US, Canada, China, Japan, UK - Size and Forecast
Fintech Software Market: Analysis North America, APAC, Europe, South America, Middle East and Africa - US, China, Japan, UK, France - Size and Forecast
Metaverse in Finance Market: Analysis North America, Europe, APAC, South America, Middle East and Africa - US, Canada, China, Germany, UK - Size and Forecast
The market is innovating rapidly with cloud deployment and tailored solutions for small and medium enterprises (SMEs). It integrates advanced technologies like Artificial Intelligence for risk management and real-time analytics tools such as Power BI for business intelligence and KPI measurement. Ensuring compliance with cybercrime regulations and open banking standards, these applications also provide KYC solutions and account opening solutions. They facilitate payment transactions and manage customer data securely, supporting financial transactions across data-intensive sectors. With emphasis on audit and compliance management, alongside consulting and integration services, these platforms enhance socio-economic health through mobile money and hosted solutions. Continuous operations & maintenance and technical upgrades bolster reliability, fostering client trust and enabling efficient data warehousing and reporting capabilities. Deployment Cloud with Offering Software is particularly advantageous for small and medium enterprise, offering streamlined operations and maintenance services.
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Market Scope |
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Report Coverage |
Details |
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Page number |
173 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 8.12% |
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Market growth 2024-2028 |
USD 60.9 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
7.37 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 36% |
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Key countries |
US, China, UK, Germany, and Canada |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Accenture Plc, Broadcom Inc., Cisco Systems Inc., Encora Digital LLC, Fidelity National Information Services Inc., Finastra, Fiserv Inc., HDB Financial Services Ltd., Infosys Ltd., International Business Machines Corp., Microsoft Corp., NCR Voyix Corp., Oracle Corp., Perfect Ltd., Salesforce Inc., SAP SE, ServiceNow Inc., SS and C Technologies Holdings Inc., Tata Consultancy Services Ltd., and Temenos AG |
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Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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