Financial Services Application Market Size

Financial Services Applications Market Analysis

The Financial Services Application Market size is estimated at USD 146.65 billion in 2024, and is expected to reach USD 271.75 billion by 2029, growing at a CAGR of 13.13% during the forecast period (2024-2029).

With the rising trend of introducing various online solutions and innovations, like person-to-person payment, online transfers, alerts, and other services by financial institutions, financial services applications have gained significant importance. 

• The rise in digital technology adoption is accelerating in the financial services sector. Paying in cash, attending face-to-face meetings with financial advisors, and even using ATMs are all curtailing aspects of financial services.
• Businesses worldwide require systems that can use customer data to comprehensively analyze usage patterns, demand peaks, and consumption fluctuations to arrive at decisions. It increases the need for a system that handles big data effectively. This demand for business analytics tools drives the market forward.
• The banking and financial sector incorporates risk in mainstream decision-making, using technology to promote a risk management culture. It consistently monitors performance, provides relevant market intelligence, and delivers business and profitability insights.
• Moreover, using technology, such as artificial Intelligence, business intelligence tools, and automation tools, the financial services sector offers new convenience to users, such as digital account opening, chatbots, peer-to-peer payments, and digital loans. According to Accenture, artificial Intelligence will account for USD 1.2 trillion in the financial industry by 2035.
• Payment transactions, card payments, and instant payments are rapidly increasing and changing, impacting millions of households worldwide. As the number of payment transactions rises, the chances of cybercrime and data breaches also rise. It is estimated that financial services could lose billions of dollars only due to cybercrime. Several companies are focusing on strategic partnerships and new product development to address security and compliance requirements to reduce the risk of cybercrime rates. For instance, in May 2023, Mastercard hosted its first-ever Fraud and Cyber Security Forum in Ghana in partnership with the Ghana Cyber Security Authority. The event primarily brings together key major players in the entire ecosystem, involving regulators, financial institutions, and fintech, to study the recent fraud trends and address the various crucial aspects of cybersecurity in Ghana.
• The COVID-19 pandemic imposed several business challenges on the financial services sector, such as liquidity shortage, short-term drop in demand for credit, cost-reduction in business models, digitizing key operational activities, and adapting to new and revised guidelines by governments.
• In the current scenario, financial services organizations need an effective and reliable business intelligence solution to meet their business demands. Moreover, due to an increasing number of financial institutions, there is a need for such financial services, which is expected to promote market growth.