Augmented Analytics in BFSI Market Size, Share and Trends 2024 to 2034

Augmented Analytics in BFSI Market Size and Forecast 2024 to 2034

The global augmented analytics in BFSI market size is calculated at USD 2.68 billion in 2024 and is predicted to reach around USD 23.85 billion by 2034, expanding at a CAGR of 24.44% from 2024 to 2034. The significant rise in the volume of data, the rising need for risk management, the increasing adoption of ML and AI technologies in the BFSI sector, and the growing focus on customer experience improvements are driving the growth of augmented analytics in BFSI market during the forecast period.

Augmented Analytics in BFSI Market Key Takeaways

• North America held the dominant augmented analytics in BFSI market in 2023.
• Asia Pacific is observed to expand rapidly during the forecast period.
• By component, the solution segment contributed the highest market share in 2023.
• By component, the service segment is anticipated to grow at the fastest CAGR during the forecast period.
• By deployment model, the on-premise segment held the largest market share in 2023.
• By deployment model, the cloud segment is expected to grow significantly during the forecast period.
• By enterprise size, the large enterprises segment captured the biggest market share in 2023.
• By enterprise size, the small and medium-sized enterprises segment is expected to grow notably during the forecast period.
• By application, the fraud detection segment generated the major market share in 2023.
• By application, the customer analytics segment is expected to grow at the fastest CAGR during the forecast period.

How Artificial Intelligence (AI) Integration is Impacting the Growth of the Augmented Analytics in BFSI Market?

The financial services industry is experiencing a robust transformation, ushering in a new era of data-driven decision-making and customer-centric solutions which is majorly driven the evolving consumer expectations and rapid technological advancements. The AI integration in the augmented analytics in BFSI market is transforming existing processes and redefining the nature of financial services. AI has become a crucial innovation and efficiency in the BFSI market. It assists financial institutions in enhancing customer experiences, making better decisions, improving operations, and managing risks more effectively.

Augmented analytics uses artificial intelligence and machine learning (ML) to automate data preparation, data visualization, and insight generation, empowering bank employees from data analysts to business users to get clear and actionable insights. AI integration allows financial institutions to gain access to large amounts of data, speed up data analysis, and make decisions quickly and effectively. The adoption of this technology led to an increase in the overall efficiency of services and operations across the BFSI sector.

Market Overview

The augmented analytics in BFSI market involves efficiently utilizing advanced techniques such as machine learning (ML) and artificial intelligence (AI) to enhance data-driven decision-making processes across financial institutions. This technique assists organizations in making more timely and informed decisions which improves strategic planning and operational efficiency. Over the years, the banking, financial services, and insurance (BFSI) sector has been evolving, with more emphasis on automation, data quality, and personalized customer service. Several leading companies in the augmented analytics market within BFSI are continuously focusing on developing advanced AI-powered data analytics solutions to improve personalized customer experiences and improve decision-making processes. The growth of augmented analytics in the BFSI banking, financial services, and insurance (BFSI) market is driven by the large data volumes, increasing demand for real-time insights, rising regulatory requirements, improvements in fraud detection, growing adoption of digital banking, and optimizing customer experience.

Augmented Analytics in BFSI Market Growth Factors

• The rising role of augmented analytics in BFSI sector is expected to propel the market growth. Augmented analytics plays an integral role in financial institutions as it allows organizations to analyze huge amounts of data accurately and quickly, significantly reducing the risk of making decisions based on inaccurate data.
• The escalating demand for online banking is positively influencing the augmented analytics in BFSI market’s growth during the forecast period.
• The rising emphasis on personalized customer experiences is expected to drive the market during the forecast period.
• The rapid advancements in Internet of Things (IoT) and big data, massive real-time datasets, and increasing adoption of AI & ML technologies in the BFSI sector are expected to contribute to the overall expansion of the market in the coming years.
• The rising risk management in the BFSI is anticipated to accelerate the market’s growth during the forecast period. BFSI organizations include various risks such as market risk, credit risk, and operational risk. Augmented analytics assists organizations to analyze risk data and make informed decisions accurately.
• The increasing use of augmented analytics for operational effectiveness and cost reduction is expected to boost the growth of augmented analytics in BFSI market during the forecast period. Augmented analytics can enhance operational effectiveness and lower costs in financial organizations.

Market Scope

Market Dynamics

Driver

Rising data volumes in the BFSI industry

The increasing data volumes in the BFSI sector are expected to boost the expansion of augmented analytics in BFSI market in the coming years. The BFSI sector generates large amounts of data daily, which may include transactional data, market data, customer data, and others. These data are highly useful in making effective informed and effective business decisions. Managing and analyzing data manually can be very time-consuming.

To automate the data analysis process and allow BFSI sectors to make quickly data-driven decisions and assist users with useful insights has led to increasing adoption of augmented analytics as an advanced technology. By automating data preparation, analysis, and visualization, augmented analytics tools allow BFSI sectors to make quick data-driven decisions and assist users with useful information based on insights generated from the vast amounts of data available to them.

Restraint

High cost of implementing augmented analytics

The high costs required to implement augmented analytics are anticipated to projected to hamper the market's growth. The implementation of augmented analytics requires significant investment which often discourages many BFSI organizations, especially small and medium-sized enterprises (SMEs) in lower and middle-income countries. Additionally, the rising concerns about data privacy and security are likely to limit the expansion of global augmented analytics in BFSI market.

BFSI companies deal with sensitive customer data such as such as personal and financial data and any breach of this data can result in extremely serious consequences. Such incidents lead to loss of customers' trust and damage to the reputation of the organization. Thus, these financial institution needs to ensure that their augmented analytics technology is secure and complies with data privacy regulations.

Opportunity

Favorable government regulation

The presence of supportive Government regulation is projected to offer immense growth opportunities for the augmented analytics in BFSI market during the forecast period. The banking, financial services, and insurance (BFSI) sector is highly regulated, and financial institutions are required to comply with several regulations and guidelines of the Government. Financial institutions are under constant scrutiny from authorized regulatory bodies. The adoption of augmented analytics assists these institutions in effectively managing their data and making more timely and informed decisions while adhering to regulatory requirements. In addition, the augmented analytics technology assists BFSI companies in improving their compliance processes, identifying any involved potential risks and fraudulent activities, enhancing decision-making capabilities, and monitoring transactions in real time. 

Component Insights

The solution segment accounted for the dominating of the global market in 2023. The segment’s growth is majorly driven by the rising demand for solutions by the BFSI organizations. Augmented analytics solutions offer a wide variety of functionalities including data preparation, data integration, data visualization, and automated insights generation. Through using augmented analytics solutions, employees working in the BFSI firms can obtain valuable insights from large volumes of data, detect anomalies, identify patterns and trends, and facilitate in making data-driven decisions.

The service segment will witness considerable growth in the market over the forecast period. The service segment in augmented analytics offers lucrative opportunities for partnerships or collaborations. Several established financial institutions are partnering with prominent technology companies and analytics service providers to boost their analytical capabilities and speed up digital transformation.

Deployment Model Insights

The on-premise segment held the largest segment of the market in 2023. Cloud-based analytics platforms offer various benefits such as flexibility, scalability, and cost-effectiveness.  It also enables BFSI organizations to leverage the power of advanced analytics without requiring high infrastructure investment. Moreover, cloud solutions provide real-time data access and collaboration. It also allows seamless integration across multiple departments and branches.

The cloud segment is expected to grow significantly in the market during the forecast period. On-premise augmented analytics solutions allow BFSI companies to benefit from rising data security, increasing control over their analytics infrastructure, and improving data governance.

Enterprise Size Insights

The large enterprises segment held the dominating share of the market in 2023. The rapid growth of the segment is mainly driven by the rising spending by major banks on the implementation of cutting-edge IoT-enabled technologies. Large financial organizations are increasingly adopting augmented analytics to manage their financial operations effectively and quickly.

The small and medium-sized enterprises segment is expected to grow notably in the market during the forecast period. The rising awareness regarding the benefits offered by augmented analytics solutions such as increasing regulatory requirements, the rising need to analyze vast amounts of data quickly and accurately increasing adoption of digital banking, the rising need for fraud detection, and the increasing focus to enhance customer experience. These factors are expected to increase the implementation of augmented analytics technology in small and medium-sized financial institutions.

Application Insights

The fraud detection segment accounted for the highest share of the market in 2023 and is anticipated to grow at a robust CAGR over the forecast period. Fraud detection is one of the major applications of augmented analytics in the BFSI sector. Often traditional methods of detecting fraud fail due to the sophisticated techniques used by fraudsters. Augmented analytics tools leverage advanced AL and ML algorithms to detect anomalies and unusual patterns in transaction data, facilitating early identification of any involved fraudulent activities. Therefore, real-time detection capability significantly assists in preventing financial losses and gaining customer trust.

The customer analytics segment is expected to grow at the fastest rate in the market during the forecast period of 2024 to 2034. Augmented analytics solutions can effectively analyze historical customer data and assist in identifying churn patterns. It also aids in predicting which customers are most likely to switch to a competitor or discontinue to get the services from the particular BFSI organization. The customer lifetime value (CLV) analysis for any individual customer is considered through their transaction history, past behavior, and engagement patterns.

The risk management segment is anticipated to grow notably in the market over the forecast period. Risk management applications of the augmented analytics in BFSI market assist financial institutions to continuously assess and mitigate various potential risks. Augmented analytics technology allows BFSI organizations to identify potential risks, and implement appropriate mitigation strategies which result in reducing financial losses and enhancing the overall stability.

Regional Insights

North America held the dominant share of the augmented analytics in BFSI market in 2023 and is observed to witness notable growth during the forecast period. The growth of the region is observed to witness notable growth during the forecast period. In recent years, the region has the widespread adoption of the market. North America offers a highly well-established financial sector along with a favorable regulatory environment that encourages innovation. Additionally, the presence of major financial hubs including New York and Silicon Valley have increasingly invested in augmented analytics technology, which resulted in driving the regional market’s expansion in the coming years. Furthermore, a significant rise in the volume of data, the increasing adoption of AI and ML technologies, and the rising need for risk management.

• In March 2024, TransUnion, a leading credit bureau in the U.S., announced the launch of OneTru, a new cloud-based platform designed to integrate its suite of data analytics, credit risk assessment, and fraud detection solutions using artificial intelligence (AI). This unified portal aims to streamline access to TransUnion’s offerings and enhance decision-making for financial institutions.

Asia Pacific is observed to expand rapidly in the augmented analytics in BFSI market during the forecast period. The growth of the region is majorly attributed to the rising digitalization and extensive adoption of advanced technology in the region providing a source of a large pool of data, creating lucrative opportunities for banking, financial services, and insurance (BFSI) sectors to leverage augmented analytics tools. These advanced analytics techniques have the advanced analytics techniques and created an effective pathway for enhancing customer experiences, reducing fraudulent activities optimizing risk management, and streamlining operations.

• In July 2024, Global Capability Centres (GCCs) in India employed more than 16.6 lakh workers in FY23, according to data from the Economic Survey. GCCs in India have grown significantly, from over 1,000 centers in FY15 to more than 1,580 centers, with over 2,740 units by FY23. The software, internet, banking, financial services, and insurance (BFSI) sectors collectively accounted for about 58% of India's IT GCC talent, according to the document.

Augmented Analytics in BFSI Companies

• QlikTech International AB
• SAP SE
• SAS Institute Inc.
• IBM CORPORATION
• Alteryx, Inc.
• Microsoft Corporation
• Salesforce.com, Inc.
• Tableau Software Inc, 
• Goldman Sachs
• Oracle Corporation
• NTT DATA Inc.
• Experian Information Solutions Inc., 
• Red Hat Inc.
• Hitachi Vantara LLC
• NICE Actimize
• Teradata
• Informatica Inc.
• FICO
• TIBCO
• Cloudera Inc.
• Domo Inc.

Announcements by Industry Leaders

• In March 2024, TransUnion, a leading credit bureau in the U.S., announced the launch of OneTru, a new cloud-based platform designed to integrate its suite of data analytics, credit risk assessment, and fraud detection solutions using artificial intelligence (AI). This unified portal aims to streamline access to TransUnion’s offerings and enhance decision-making for financial institutions.
• In May 2024, Accenture and Oracle announced their collaboration to assist clients in accelerating generative AI adoption, starting with the Finance Organization. Together, Accenture and Oracle will help clients across industries reinvent their businesses with generative AI, moving from experimentation to adoption at scale. The companies will leverage Oracle Cloud Infrastructure (OCI) Generative AI to help increase efficiency, improve resilience, and deliver superior customer and employee experiences while keeping client’s data private and secure.

Recent Developments

• In September 2022, Karnataka Bank opened the Analytical Centre of Excellence (ACoE) in Bengaluru. The center, which is developed in association with Ernst and Young (EY) as a project partner, will help in the accelerated incubation of artificial intelligence (AI)/machine learning (ML) models along with their integration into business, on a scalable analytical data platform.
• In October 2024, Zingly.ai, the GenAI and digital-first CX Center provider, unveiled a suite of AI solutions to fuel revenue growth for banking, financial services, and insurance (BFSI) institutions. These companies face increasingly complex customer inquiries, heightened expectations, and pressure to deliver personalized experiences at scale. Zingly harnesses generative AI, improving revenue-driven business outcomes and service efficiency in complex, regulated environments.

Segments Covered in the Report

By Component

• Solution
• Service

By Deployment Model

• On-Premise
• Cloud

By Enterprise Size

• Large Enterprises
• Small And Medium-Sized Enterprises

By Application

• Risk and Compliance Management
• Customer Analytics
• Fraud Detection
• Portfolio Management
• Others

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East and Africa