Digital transformation is a method that uses digital technology to change current business approaches into more advanced and technologically driven business approaches to increase customer satisfaction and to enhance revenue opportunities. In addition, various banks, fintech, and insurance companies have also adopted digital banking solutions to increase transparency among the enterprises and to build more trust among the employees. Furthermore, various insurance companies across the globe have adopted digital transformation to increase productivity of employees as well as to save time and resources of the company.
The key factors that drive the growth of the digital transformation in BFSI market include the increase in demand for customized IT solutions for specific banking needs. Traditional banking solutions are unable to meet the changing needs of customers and organizations. As a result, banks turn to customized IT solutions that meet their specific needs, delivering personalized experience and specialized functionality. Moreover, the main benefits of custom-written software are that it provides improved security for customers’ and organizations’ data and reduces the chances of system cyberattacks and phishing attacks, besides providing market access growth. In addition, exploration of digital channels to roll out new services is considered as an important factor that boosts the digital transformation in BFSI market. However, high implementation & maintenance cost of digital technology and security & privacy concerns related to data theft and cyber-attacks are expected to hamper the market growth. Cybersecurity risks lead to loss of privacy and financial threat, such as identity theft which negatively impacts the growth of the market. On the contrary, the rise in adoption of digital services among developing nations of Asia-Pacific and LAMEA countries is expected to offer remunerative opportunities for the expansion of the global market during the forecast period. Businesses across the Asian countries have adopted efficient and streamlined solutions for enhancing customer experience and to increase their customer base, which provides a lucrative opportunity for the market growth.
The digital transformation in BFSI market is segmented on the basis of component, deployment model, enterprise size, technology, end user and region. In terms of component, the market is bifurcated into solution and service. By deployment model, the market is divided into on-premises and cloud. On the basis enterprise size, the market is segmented into large enterprises and small and medium-sized enterprises. On the basis of technology, it is divided into artificial intelligence, cloud computing, blockchain, big data and business analytics, cyber security and others. As per end user, the market is bifurcated into banks, insurance companies and others. On the basis of region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The report analyzes the profiles of key players operating in the digital transformation in BFSI market such as Accenture, Alphasense Inc., Cognizant, FUJITSU, Google, LLC, HID Global Corporation, International Business Machines Corporation, Microsoft Corporation, Oracle Corporation and SAP SE. These players have adopted various strategies to increase their market penetration and strengthen their position in the digital transformation in BFSI market.
The key factors that drive the growth of the digital transformation in BFSI market include the increase in demand for customized IT solutions for specific banking needs. Traditional banking solutions are unable to meet the changing needs of customers and organizations. As a result, banks turn to customized IT solutions that meet their specific needs, delivering personalized experience and specialized functionality. Moreover, the main benefits of custom-written software are that it provides improved security for customers’ and organizations’ data and reduces the chances of system cyberattacks and phishing attacks, besides providing market access growth. In addition, exploration of digital channels to roll out new services is considered as an important factor that boosts the digital transformation in BFSI market. However, high implementation & maintenance cost of digital technology and security & privacy concerns related to data theft and cyber-attacks are expected to hamper the market growth. Cybersecurity risks lead to loss of privacy and financial threat, such as identity theft which negatively impacts the growth of the market. On the contrary, the rise in adoption of digital services among developing nations of Asia-Pacific and LAMEA countries is expected to offer remunerative opportunities for the expansion of the global market during the forecast period. Businesses across the Asian countries have adopted efficient and streamlined solutions for enhancing customer experience and to increase their customer base, which provides a lucrative opportunity for the market growth.
The digital transformation in BFSI market is segmented on the basis of component, deployment model, enterprise size, technology, end user and region. In terms of component, the market is bifurcated into solution and service. By deployment model, the market is divided into on-premises and cloud. On the basis enterprise size, the market is segmented into large enterprises and small and medium-sized enterprises. On the basis of technology, it is divided into artificial intelligence, cloud computing, blockchain, big data and business analytics, cyber security and others. As per end user, the market is bifurcated into banks, insurance companies and others. On the basis of region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The report analyzes the profiles of key players operating in the digital transformation in BFSI market such as Accenture, Alphasense Inc., Cognizant, FUJITSU, Google, LLC, HID Global Corporation, International Business Machines Corporation, Microsoft Corporation, Oracle Corporation and SAP SE. These players have adopted various strategies to increase their market penetration and strengthen their position in the digital transformation in BFSI market.
Key Benefits for Stakeholders
- The study provides an in-depth analysis of the global digital transformation in BFSI market along with the current & future trends to illustrate the imminent investment pockets.
- Information about key drivers, restrains, & opportunities and their impact analysis on the global digital transformation in BFSI market size is provided in the report.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the industry.
- The quantitative analysis of the global digital transformation in BFSI market from 2022 to 2032 is provided to determine the market potential.
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Key Market Segments
By Component
- Solution
- Service
By Deployment Mode
- On-Premise
- Cloud
By Enterprise Size
- Large Enterprises
- Small and Medium-sized Enterprises
By Technology
- Artificial Intelligence
- Cloud Computing
- Blockchain
- Big Data and Business Analytics
- Cybersecurity
- Others
By End User
- Banks
- Insurance Companies
- Others
By Region
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Market Players
- Microsoft Corporation
- International Business Machines Corporation
- Oracle
- Cognizant
- Fujitsu
- SAP SE
- AlphaSense Inc.
- Google LLC
- HID Global Corporation.
- Accenture
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: DIGITAL TRANSFORMATION IN BFSI MARKET, BY COMPONENT
CHAPTER 5: DIGITAL TRANSFORMATION IN BFSI MARKET, BY DEPLOYMENT MODE
CHAPTER 6: DIGITAL TRANSFORMATION IN BFSI MARKET, BY ENTERPRISE SIZE
CHAPTER 7: DIGITAL TRANSFORMATION IN BFSI MARKET, BY TECHNOLOGY
CHAPTER 8: DIGITAL TRANSFORMATION IN BFSI MARKET, BY END USER
CHAPTER 9: DIGITAL TRANSFORMATION IN BFSI MARKET, BY REGION
CHAPTER 10: COMPETITIVE LANDSCAPE
CHAPTER 11: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
The Digital Transformation in BFSI Market is likely to experience a significant growth rate of 16.6% from 2023-2032 owing to increasing market demand for big data and business analyticsDigital transformation in BFSI is a set of methodologies, tools and processes that is used by modern companies to improve their operational activities and to enhance their sales. The key objective of digital transformation in BFSI is to automate, and digitize processes in the banking & fintech organizations and to streamline critical process of the organization. Numerous benefits are associated with digital transformation in BFSI, which include enhanced security features, better risk management process, and automation of repetitive tasks.
The key factors that drive the growth of the digital transformation in BFSI market include the increase in adoption of digital technology by various banks and surge in need of digital services among the fintech to improve the customer experience. Banks and fintech’s are digitizing their asset for increasing customer retention rate and to provide customers with enhanced services. Furthermore, digital financial service helps banks to increase their productivity speed and to provide transparency of fund transactions to their clients. In addition, exploration of digital channels to roll out new services is considered as an important factor to boost the digital transformation in BFSI market. Many banking and fintech organizations are adopting digital channels for upgrading their system to improve customer experience. Moreover, most of the banking and fintech organizations are adopting digital channel that focuses on enhancing the speed of the transaction processing and improving user experience of financial services. However, high implementation and maintenance cost of digital technology and security & privacy concerns related to data theft and cyber-attacks is expected to hamper the market growth. Cybersecurity risks facilitate consumer loss of privacy and financial threat, such as identity theft which negatively impacts the growth of the market.
The market also offers growth opportunities to the key players in the market. Increase in adoption of advanced technology such as AI and machine learning among the companies is expected to offer remunerative opportunities for the expansion of the global market during the forecast period. Many banks and financial institutions are adopting artificial intelligence-based banking solutions to provide customer with faster and more efficient customer services. In addition, to improve the security features in the banking platform, many banks are adopting machine learning to predict fraud even before it happens. These innovations are constantly being developed and account for numerous opportunities for the sector.
The digital transformation in BFSI market is segmented on the basis of component, deployment model, enterprise size, technology, end user and region. In terms of component, the market is bifurcated into solution and service. By deployment model, the market is divided into on-premises and cloud. On the basis of enterprise size, the market is segregated into large enterprises and small and medium-sized enterprises. On the basis of technology, it is divided into artificial intelligence, cloud computing, blockchain, big data and business analytics, cyber security and others. As per end user, the market is categorized into banks, insurance companies and others. Region wise, it is analyzed across North America (the U. S., and Canada), Europe (UK, Germany, France, Italy, Spain, and rest of Europe), Asia-Pacific (China, India, Japan, Australia, South Korea and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
The key players profiled in the study are Accenture, Alphasense Inc., Cognizant, FUJITSU, Google, LLC, HID Global Corporation, International Business Machines Corporation, Microsoft Corporation, Oracle Corporation and SAP SE. The players in the market have been actively engaged in the adoption various strategies such as collaboration, product launch, and partnership to remain competitive and gain advantage over the competitors in the market. For instance, in April 2023, the EY organization announced an alliance between FintechOS, a financial technology company, and Ernst & Young SRL to simplify and support the launch and services of banking and insurance products and support detailed transformation journeys through innovation, business knowledge, and the implementation of FintechOS’ fintech enablement platform. This collaboration has the potential to transform how banks operate, from data management processes to product development and customer service. Across Europe, banks have made steady progress to digitalize their systems and processes, however, the pace must increase as competition from other industries grows. Moreover, in March 2020, Lloyds Banking Group announced a new strategic collaboration with Google Cloud, as part of its commitment to invest £3 billion to help drive its digital evolution and overall cloud transformation program. The collaboration was part of the Group’s technology strategy that is built on its multi-cloud approach. The collaboration added Google Cloud to the Group’s portfolio of technologies, accelerating its ambition to deploy smarter technology and better experiences for its customers across the UK. Therefore, such strategies foster the digital transformation in BFSI market growth.
Key Market Insights
By component, the solution segment was the highest revenue contributor to the market, and is estimated to $193.48 billion by 2032, with a CAGR of 15.5%. However, the service segment is expected to be the fastest growing segment with the CAGR of 18.8% during the forecast period.By deployment mode, the on-premise segment dominated the global market, and is estimated to reach $172.84 billion by 2032, with a CAGR of 15.5%. However, the cloud segment is expected to be the fastest growing segment with the CAGR of 18.3% during the forecast period.
By enterprise size, the large enterprises segment dominated the global market, and is estimated to reach $188.25 billion by 2032, with a CAGR of 15.6%. However, the small and medium-sized enterprises segment is expected to be the fastest growing segment with the CAGR of 18.6% during the forecast period.
By technology, the big data and business analytics segment was the highest revenue contributor to the market, and is estimated to $83.77 billion by 2032, with a CAGR of 15.5%. However, the blockchain segment is expected to be the fastest growing segment with the CAGR of 21.4% during the forecast period.
By end user, the banks segment dominated the global market, and is estimated to reach $183.95 billion by 2032, with a CAGR of 15.6%. However, the others segment is expected to be the fastest growing segment with the CAGR of 19.4% during the forecast period.
Based on region, North America was the highest revenue contributor, accounting for $25.84 billion in 2022, and is estimated to reach $82.45 billion by 2032, with a CAGR of 12.5%.
Companies Mentioned
- Microsoft Corporation
- International Business Machines Corporation
- Oracle
- Cognizant
- Fujitsu
- SAP SE
- AlphaSense Inc.
- Google LLC
- HID Global Corporation.
- Accenture
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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