The global digital transformation in banking, financial services, and insurance market is expected to reach USD 121.70 billion by 2025. The micro factors that are driving the growth further are increasing adoption of smartphones and smart devices, growing digital payments, the introduction of digital currencies and use of big data tools to analyze a large amount of financial data.
The collaboration between the technologically advanced companies including Google, IBM, and Amazon and banking, financial services & insurance companies including JPMorgan Chase & Co., BNP Paribas, and Wells Fargo & Co. are giving a new growth direction to this industry. Additionally, these partnerships and collaborations are helping in reducing operation cost in overall value chain thus improving the profit margin for the companies. For instance, the implementation of cloud computing in BFSI has increased the overall efficiency of the industry. Moreover, these services are helping banks to focus on enhancing their product portfolio and offer quality assistance 24/7.
On the basis of technology, the global digital transformation in the BFSI market is fragmented into cloud computing, big data, Artificial Intelligence, blockchain, biometrics, and others. The cloud computing technology had dominated the global market by occupying 59.8% market share in 2018 and is expected to maintain its position over the forecast period. There are so many services offered by BFSI industry using cloud computing services such as insurance data exchange cloud service, health insurance value-based payment cloud service financial services lending and leasing cloud service financial services revenue management and billing cloud service and banking cloud service.
However, the adoption of other new technologies such as blockchain and artificial intelligence are witnessing strong demand in the industry and are expected to grow at an exponential growth rate during the forecast period. Blockchain is being used to develop cryptocurrencies including bitcoin, ripple, dash and many other digital currencies. Thus, resulting in real-time cross border payments by reducing the transition time and operation cost. Moreover, many countries including Japan, Unites States, Canada, and Australia are using bitcoins for the payments. For instance, in U.S. companies including Microsoft store, dish network, overstock.com, and subway are accepting payments in bitcoin.
As of 2018, the market for digital transformation in banking, financial services, and insurance is fragmented with global and domestic players. The market is a mix of different technology providers offering single services or multiple services. For instance, Amazon and Google offer multiple technologies such as cloud services, big data services, and artificial intelligence whereas companies such as Bitcoin.com, BitGo, and Coinbase offer only cryptocurrencies.
Moreover, the established companies are either merging or acquiring domestic and technology providers to boost their online offerings by using digital technologies such as cloud and big data. For instance, in June 2019, Trustly, a Swedish fintech company has agreed to merge with PayWithMyBank which is based in the U.S. This will help billers and merchants to accept payments from around millions of consumers across U.S. and Europe. The major companies covered in the report are IBM Corporation, Microsoft Corporation, Google, SAP, Oracle Corporation, Coinbase, Fujitsu, Cross Match Technologies, HID Global, and AlphaSense Inc.,
Key segments of the global digital transformation in banking, financial services, and insurance market include:
Technology Overview, 2015-2025 (USD Billion)
- Cloud Computing
- Artificial Intelligence
- Big Data
Regional Overview, 2015-2025 (USD Billion)
- North America
- United Kingdom
- Rest of Europe
- Asia Pacific
- South Korea
- Southeast Asia
- Rest of Asia Pacific
- Rest of the World