Augmented Analytics in BFSI Market Expected to Reach $14.5 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Augmented Analytics in BFSI Market," The augmented analytics in BFSI market was valued at $1.7 billion in 2022, and is estimated to reach $14.5 billion by 2032, growing at a CAGR of 24.4% from 2023 to 2032.

Augmented analytics in the BFSI sector is revolutionizing how financial institutions analyze data, make decisions, and interact with customers. It empowers organizations to harness the power of advanced analytics technologies to gain a competitive edge, mitigate risks, drive operational efficiency, and deliver enhanced financial services to their customers. Furthermore, augmented analytics in the BFSI sector helps to streamline and optimize various processes, including risk management, fraud detection, customer segmentation, personalized marketing, and investment management. Hence, by gaining a deeper understanding of customer behavior, preferences, and needs, BFSI organizations can enhance customer engagement, satisfaction, and retention. 

Furthermore, major market players have undertaken various strategies to increase the competition and offer enhanced services to their customers. For instance, in November 2022, IBM released a new software to remove data silos and streamline planning and analytics so that they can swiftly make data-driven decisions and deal with unforeseen disruptions. IBM Business Analytics Enterprise offered users a comprehensive view of data sources throughout their whole business through a set of business intelligence planning, budgeting, reporting, forecasting, and dashboard capabilities. Therefore, these augmented analytics in BFSI market trends helps to grow the market. 

On the basis of component, the solution segment attained the highest growth in 2022.  This is because augmented analytics solutions provide functionalities such as data integration, data preparation, data modeling, visualization, and automated insights generation. Thus, by utilizing augmented analytics solutions, BFSI professionals can uncover valuable insights from vast volumes of data, identify patterns and trends, detect anomalies, and make data-driven decisions.

However, the service segment is considered to be the fastest growing segment during the forecast period. This is because the growth of the service segment in augmented analytics presents opportunities for technology partnerships and collaborations, as many established financial institutions are partnering with technology companies and analytics service providers to enhance their analytical capabilities and accelerate digital transformation. 

By region, North America attained the highest growth in 2022. This is because North America has been at the forefront of adopting augmented analytics in the BFSI market, because the region offers a highly developed financial sector and a favorable regulatory environment that encourages innovation. Furthermore, the major financial hubs like New York and Silicon Valley have witnessed significant investments in augmented analytics technology, which leads to the growth of the market in this region.

However, the Asia-Pacific region is considered to be the fastest growing region during the forecast period. This is because increasing digitalization and widespread use of technology in the region provide a rich source of data, offering massive opportunities for financial institutions to leverage augmented analytics tools. Moreover, the ability to tackle this data through advanced analytics techniques opens the path for personalized customer experiences, optimized risk management, and streamlined operations which will boost the augmented analytics in BFSI market growth in upcoming years.

The COVID-19 pandemic has had a positive impact on the augmented analytics in the Banking, Financial Services, and Insurance (BFSI) market. As the pandemic forced businesses worldwide to adapt to remote working environments and stringent safety measures, the BFSI industry faced unprecedented challenges. However, this crisis also highlighted the importance of data-driven decision-making and the need for advanced analytics solutions.

Furthermore, augmented analytics, which combines artificial intelligence and machine learning techniques with human expertise, emerged as a critical tool for BFSI organizations to navigate the uncertainties caused by the pandemic. From risk management and fraud detection to customer analytics and compliance monitoring, augmented analytics played a crucial role in supporting business continuity and ensuring operational efficiency in the BFSI sector. Moreover, these solutions empowered BFSI professionals to adapt to remote work and collaborate effectively by providing real-time data analysis and visualization capabilities. Hence, as the industry recovers from the pandemic, the adoption of augmented analytics is expected to accelerate further, enabling BFSI organizations to build resilience, enhance customer experiences, and drive growth in the post-pandemic era.

Key Findings of the Study

• By deployment mode, the on-premise segment led the augmented analytics in BFSI market size in terms of revenue in 2022.
• By enterprise size, the large enterprises segment led the augmented analytics in BFSI market share in terms of revenue in 2022.
• By application, the customer analytics segment led the augmented analytics in BFSI market in terms of revenue in 2022.  
• By region, North America generated the highest revenue in 2022.

The key players profiled in the augmented analytics in BFSI market analysis are Alteryx, Inc., IBM Corporation, Information Builders, Microsoft Corporation, QlikTech International AB, SAP SE, Salesforce.com, Inc., SAS Institute Inc., and Tableau Software Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the augmented analytics in BFSI industry.