Market Size of Finance Cloud Industry
|2019 - 2029
|Market Size (2024)
|USD 26.93 Billion
|Market Size (2029)
|USD 80.30 Billion
|CAGR (2024 - 2029)
|Fastest Growing Market
*Disclaimer: Major Players sorted in no particular order
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Finance Cloud Market Analysis
The Finance Cloud Market size is estimated at USD 26.93 billion in 2024, and is expected to reach USD 80.30 billion by 2029, growing at a CAGR of 20.05% during the forecast period (2024-2029).
Along with increased revenue, the cloud increases the number of leads generated and offers better pricing.
- Banking services and financial and insurance companies are opting for digital applications to quickly address customers' ongoing queries, along with keeping into consideration the long-term benefits and achieving a competitive advantage. For instance, Ess Kay Fincorp chose a cloud-based lending platform to digitize its entire lending business and decrease its loan approval time by 33%.
- Operational efficiency is another factor driving the growth of the finance cloud market. Roha Housing Finance wanted to issue loans within two hours instead of three days. After adopting the agility and cost efficiency of cloud-based technology to offer a "customer-first" approach, it was able to provide end-to-end loan processing in seven days, which is 50% faster than the benchmark for the housing finance industry.
- In developing nations and areas like India, China, Brazil, and Africa, the market for financial cloud computing services has a lot of room to expand. For instance, the ITRS Group Ltd., a monitoring and analytics software provider, predicted that 86% of the Asia Pacific financial services industry would use the public cloud this year. By utilizing cloud-based applications, businesses can significantly reduce the cost of purchasing, maintaining, and upgrading IT systems and equipment.
- However, problems with data security and protection and expensive investment and maintenance expenses limit the expansion of the finance cloud industry. Data loss routinely puts cloud storage's security in jeopardy. Information can be affected entirely by a computer virus, hacking, or a broken system instead of being stolen and shared.
- The COVID-19 epidemic had a favorablly impacted on the financial cloud market. Due to an upsurge of COVID-19 cases worldwide, the economy slowed down. However, the banking, insurance, and financial services industries continued to function despite the pandemic. During the epidemic, financial institutions were forced to rapidly adopt remote working, which prompted investment in a cloud-based infrastructure. Deutsche Bank and Google Cloud signed a 10-year strategic cloud collaboration agreement during COVID-19. The alliance is anticipated to boost resilience, quicken the creation of new skills, and cut costs.