Big Data Analytics In Banking Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The big data analytics in banking market is segmented by Type of Solutions (Data Discovery and Visualization (DDV) and Advanced Analytics (AA)), and Geography.

Market Snapshot

Big Data Analytics in Banking Market Overview
Study Period: 2018- 2026
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 22.97 %

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Market Overview

Big Data Analytics in the Banking market is expected to register a CAGR of 22.97% during the period of 2021-2026. With the outbreak of COVID-19, humongous losses in the financial markets of up to USD 744 billion were recorded in March 2020. Investor sentiments at present are at an all-time low, and it is also becoming a difficult task for banks worldwide to continue to maintain good assets and earnings. Due to the shutdowns across various regions and income slowdown, many repayments of loans, especially in Europe, may cease leaving the banks dry, which could slow down the existing banks to incorporate Big Data Analytics in their system.

  • The major drivers for adopting Big Data analytics in the banking sector are the significant growth in the amount of data generated and governmental regulations. As technology advances, the number of devices that consumers use to initiate transactions is also proliferating (such as smartphones), increasing the number of transactions. This rapid growth in data requires better acquisition, organization, integration, and analysis.
  • According to Open Banking Implementation Entity (OBIE), API calls increased from one million a month in May 2018 to more than 66.7 million in June 2019. PSD2 mandates that banks create APIs (vehicles for bundling and sharing discrete data sets between organizations) for digital banking transactions.
  • China, banks are driving open banking voluntarily with minimal regulatory mandates. As a result, they are shaping consumers' online experience. Australia's federal government made it mandatory for major banks to provide product information APIs by July 2019. It will require the banks to make all consumer and transaction data open and available by July 2020.
  • JPMorgan Chase and Co. is the largest bank in the United States and the sixth-largest in the world. Due to a large customer base of over 3 billion, a large volume of credit card information and other transactional data of its customers is created. By adopting Hadoop, they are now able to generate insights on customers' trends, and the same reports are offered to its clients.
  • The market is also witnessing various investments from known investors and the government. For instance, The Big Data Europe Project (2015-2017) received funding from the European Union's Horizon 2020 research and innovation program. Its main aim was to develop Big Data application prototypes in industries that can provide large data sets and urgently need to progress toward data-driven solution approaches.

Scope of the Report

Big data analytics can help the banks understand customer behavior based on the inputs received from various insights, including investment patterns, shopping trends, motivation to invest, and personal or financial background. With the improvement in big data analytics, banks can analyze the market trends and form decisions related to lowering or increasing interest rates for different individuals across various regions. With the help of big data analytics, as the number of electronic records grows, financial services are actively using it to store data, derive business insights, and improve scalability.

Solution Type
Data Discovery and Visualization (DDV)
Advanced Analytics (AA)
North America
Asia Pacific
Latin America
Middle East and Africa

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Key Market Trends

Enforcement of Government Initiatives Acts as a Key Driver

  • Banking and financial services operate under a heavy regulatory framework, which requires significant levels of monitoring and reporting. Credit Suisse, a Swiss multinational investment bank and financial services company uses Big Data to gain insights from various records collected across the bank and to manage the regulatory compliance requirements.
  • Other Big Data applications in this industry include customer segmentation and experience analysis, credit risk assessment, and targeted services. Banks like BNY Mellon, Morgan Stanley, Bank of America, Credit Suisse, and PNC are already working on strategies around Big Data in Banking, and other banks are rapidly catching up.
  • Globally, governments are undertaking major reforms in the sector to ensure compliance and security of interests. The financial systems and allied products are becoming more complex and creating a way for fraudsters. To save banks from fraud and risk, governments lay reforms to identify and prevent evolving and complex fraud schemes.
Big Data Analytics in Banking Market Share

Europe to Expected to Witness Significant Growth

  • Considering the regional analysis of government regulations, the government's approach in every region varies in intensity. The European banks are taking more robust regulatory strategies than their Asian counterparts. For instance, in Europe, regulations have been significant catalysts for the rise of open banking. These include Europe's implementation of its Second Payment Services Directive (PSD2) and the UK Competition and Markets Authority's (CMA) Open Banking regulation.
  • Danske Bank is the largest bank in Denmark, with a customer base of more than 5 million. It utilizes its in-house advanced analytics to identify fraud while reducing false positives. Thus, after implementing a modern enterprise analytics solution, the bank realized a 60% reduction in false positives, which increased true positives by 50%.
  • German consumers are increasingly using their mobile devices for internet banking. About 40% of them have a banking app on their mobile phones, and one-fifth of them also use their apps for mobile payment services (Eurostat estimates). The trend of "open banking" in European retail banks is causing them to adopt Big Data analytics solutions, which combat issues traditional financial institutions have faced for decades. Several banks in the region are already using Big Data analytics to deliver compelling use cases.
  • Lloyds Banking Group was the first European bank to implement Pindrop's Phoneprinting technology for detecting fraud. An 'audio fingerprint' of every call was created by analyzing over 1,300 unique call features, such as location, background noise, number history, and call type. In January 2020, The European Banking Authority (EBA) stated some elements of trust, such as data protection, quality, and security. These should be incorporated to support the rollout of advanced analytics.
  • However, according to Commerzbank, Big Data analytics adoption is lagging in some parts of Europe. More substantial infrastructure investments, wider adoption of public cloud, and 5G deployment are the factors required to stay competitive and relevant in global markets. This can be considered as an opportunity and a risk.
Big Data Analytics in Banking Market Growth Rate

Competitive Landscape

Big Data Analytics In Banking Market is quite fragmented due to the presence of many international players that offer a variety of big data analytics solutions for banks for various applications, including fraud detection and management, customer analytics, social media analytics, etc. Some of the key players in the market are SAP SE, IBM Corporation, and Oracle Corporation.

  • February 2020 - Oracle Financial Crime and Compliance Management (FCCM) suite of products now include an integrated analytics workbench, 300-plus customer risk indicators, and embedded graph analytics visualizations. These capabilities build on Oracle’s strategy to help financial institutions fight money laundering and achieve compliance.
  • February 2020 - The Central Bank of Libya in Tripoli, which includes four of Libya’s public sector banks, is upgrading its current FLEXCUBE solution offered by Oracle Corporation. FLEXCUBE engages in helping banks meet customers’ evolving expectations for more digital, responsive, and connected experiences. In addition to addressing core banking needs, the integrated solution will help the banking staff with critical insights and help improve operations.

Table of Contents


    1. 1.1 Study Assumptions & Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.2.1 Threat of New Entrants

      2. 4.2.2 Bargaining Power of Buyers/Consumers

      3. 4.2.3 Bargaining Power of Suppliers

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Impact of COVID-19 on the Market


    1. 5.1 Market Drivers

      1. 5.1.1 Enforcement of Government Initiatives

      2. 5.1.2 Increasing Volume of Data Generated by Banks

    2. 5.2 Market Challenges

      1. 5.2.1 Lack of Data Privacy and Security



    1. 7.1 Solution Type

      1. 7.1.1 Data Discovery and Visualization (DDV)

      2. 7.1.2 Advanced Analytics (AA)

    2. 7.2 Geography

      1. 7.2.1 North America

      2. 7.2.2 Europe

      3. 7.2.3 Asia Pacific

      4. 7.2.4 Latin America

      5. 7.2.5 Middle East and Africa


    1. 8.1 Company Profiles

      1. 8.1.1 Oracle Corporation

      2. 8.1.2 SAP SE

      3. 8.1.3 IBM Corporation

      4. 8.1.4 Alteryx Inc.

      5. 8.1.5 Aspire Systems Inc.

      6. 8.1.6 Adobe Systems Incorporated

      7. 8.1.7 Microstrategy Inc.

      8. 8.1.8 Mayato GmbH

      9. 8.1.9 Mastercard Inc.

      10. 8.1.10 ThetaRay Ltd

    2. *List Not Exhaustive


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Frequently Asked Questions

The Big Data Analytics In Banking Market market is studied from 2018 - 2026.

The Big Data Analytics In Banking Market is growing at a CAGR of 22.97% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

IBM Corporation, SAP SE, Oracle Corporation, Aspire Systems Inc., Adobe Systems Incorporated are the major companies operating in Big Data Analytics In Banking Market.

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