BFSI vertical is undergoing significant transformation while facing challenges due to stringent regulations and increasing customer demands.
According to a new market research report by MarketsandMarkets, the global Financial Analytics Market size is expected to grow from USD 6.9 billion in 2018 to USD 11.4 billion by 2023, at a CAGR of 10.7 percent during the forecast period.
The key factors driving Financial Analytics Market include an increasing need for reducing planning and budgeting cycles and emergence of new IT applications and infrastructure, such as big data and advanced analytics.
The BFSI vertical is undergoing significant transformation while facing challenges due to stringent regulations and increasing customer demands. Financial analytics helps companies overcome these challenges and achieve their business goals by providing them with risk quantification and finance process automation.
The utilization of financial analytics technology in the banking industry is increased to balance short and long-term strategies through pre-configured capabilities and built-in methodologies, such as regulatory risk management, capital planning, credit risk management, insurance risk management, and risk governance capabilities in compliance with changing regulations and financial standards.
Customer management applications in financial analytics help companies manage customer payment behaviour by deploying collection actions at the right time. This further improves efficiency of company's collection department, and increase customer satisfaction by reducing dispute resolution time. The outcomes help reduce bad debts and increase cash flow.
Combining the financial data with operational data provides insight into customer wants and needs further helping companies to create customized marketing campaigns. These campaigns lead to customer retention through enhanced customer profitability. The customer management applications include customer experience analytics and customer profitability analytics.
