Market Trends of Business Analytics Industry
BFSI is Expected to Hold Major Share
- Technology is transforming the banking and finance industry. With the rising usage of the internet and the proliferation of mobile devices and apps, today's financial institutions face mounting competition, changing client demands, and strict control and risk management in a highly dynamic market. In addition, the growing digitalization and proliferation of digital payments are driving the need for business analytics in the BFSI industry.
- Further, at the same time, technology has given rise to powerful business analytics tools. The banking and finance industry can use business analytics tools to leverage customer data for insights that can lead to more innovative and efficient management practices and better business decisions. Banking and finance institutions use business analytics solutions to drive profitability, reduce risk, and create a competitive advantage.
- Furthermore, the advent and application of business analytics have helped the banking and finance industry optimize processes and streamline operations, thus improving efficiency and competitiveness. Many banks and financial institutions worldwide are working on improving their business analytics, mainly to give them an edge against the competition or to predict emerging trends that can affect their businesses.
- Moreover, Banking, Financial Services, and Insurance (BFSI) companies are leveraging business analytics solutions to acquire more customers. For instance, with the increasing focus on retail customers, Yes Bank is leveraging data to understand customer behavior. Hence, based on a certain forecasting model, it might provide the ideal mix of products. The bank has already diversified into the retail segment and is now harnessing data analytics to develop models that help understand customer behavior. The bank has built a war chest of about INR 120-150 crore for its data strategy up to 2022-23 and plans to hire data scientists and experts who will be part of the company's TechTONic group, which has 100 in-house experts.
- Moreover, the BFSIs across the world have started adopting new and advanced technologies, thus further opening new opportunities for adopting business analytics solutions in the BFSI industry. For instance, according to the data from Celent and Wall Street Journal, the share of banks' IT spending on new technology in North America is expected to increase from 30% in 2017 to 48% in the current year.
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North America is Expected to Hold the Major Share
- The region is home to some of the most prominent market vendors, such as Microsoft, Oracle, and Salesforce.com. These players' continuous product innovations and enhanced product business analytics are finding significant applications in various end-user industries across the region.
- Further, new and emerging players are also competing with giant business analytics players by offering innovative solutions and attracting significant investments in the business analytics market, thus driving the market. For instance, in October 2022, Tellius, a leading AI-driven decision intelligence platform, announced a USD 16 million Series B funding round led by Baird Capital. The latest funding will likely be used to enhance Tellius' decision intelligence platform, expand the company's go-to-market capabilities, and support talent acquisition across sales, marketing, and product engineering functions.
- Moreover, the region is an early adopter of advanced technologies, helping market vendors offer customized and advanced technology-enabled business analytics solutions for consumers. In addition, the region is witnessing high adoption of the cloud across organizations, thus enabling the proper implementation of business analytics.
- Further, accelerated digitalization and early adoption of advanced analytics and cloud computing have emerged as one of the most essential and crucial technologies to gain competitive advantage. As a result, technology leaders across the region are increasingly scaling their enterprises' data and business analytics strategies with the help of cutting-edge cloud services and tools. Such instances are expected to drive the region's demand for business analytics solutions.
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