Financial Services Software Market Expected to Reach $282.71 Billion by 2031

According to a new report published by Allied Market Research, titled, “Financial Services Software Market," The financial services software market was valued at $118.65 billion in 2021, and is estimated to reach $282.71 billion by 2031, growing at a CAGR of 9.2% from 2022 to 2031.

Global financial service software provides automation to various functions of the global financial sector which include audit, risk & compliance management, BI & analytics applications, business transaction processing, customer experience, and enterprise IT. Apart from automating the functions, the applications also help in automating the analysis of huge chunks of quantified data which in turn helps in drafting organizational strategies and strategic decision making. The two different type of software such as financial advice software and financial solutions software plays an important role when organizations plan to integrate risk, performance, and compliance.Furthermore, the factor driving the financial services software market trends include the rising emergence of demand for digital channels for banking and enhanced customer services offered by financial service software is driving the growth of the financial service software market. In addition, the surging demand for workforce optimization solutions is fueling the financial services software market growth. However, increasing the cost of deployment and adhering to different political factors and regulatory compliances hamper the financial service software market forecast. Conversely, growing investment in big data, mobility, and cloud technologies by the fintech companies is anticipated to provide numerous financial services software market opportunity during the forecast period.

Depending on the enterprise size, the large enterprise segment dominated the financial services software market share in 2021 and is expected to continue this trend during the forecast period, owing to the rapidly growing digital data availability in the form of consumer profiles, customer feedback, social media interactions, and others. However, the SMEs segment is expected to witness the highest growth in the upcoming years, owing to the rapidly redefined banking through innovating disruptive digital services and targeted products which enable business owners to check their balances and update account information.

Region-wise, the financial services software market size was dominated by North America in 2021 and is expected to retain its position during the forecast period, owing to the rising adoption of self-service across their merchandising and service segments to enhance their customer engagement, and government initiatives promoting digitization and smart city development aiding the growth of the financial service software market. However, Asia Pacific is expected to witness significant growth during the forecast period, owing to expanding access to financial services for more people means a higher growth rate over the region, which is expected to fuel the market growth in this region.

During the pandemic, the financial service sector remained mostly affected but rather witnessed positive growth during the period. Although the social distancing and isolation measures limited the growth of the traditional methods of financial service during the first few months of the COVID-19 pandemic. In addition, several market players are entering into collaboration and strategic partnerships to tackle the negative impact of a pandemic. For instance, in April 2022, Finastra extends collaboration with Orange Bank for integrated treasury management in the cloud. This move will allow the bank to take advantage of a fully integrated treasury management platform, allowing it to obtain faster access to innovation and market time.

KEY FINDINGS OF THE STUDY

• By component, the software segment accounted for the largest financial service software market share in 2021.
• Region-wise, North America generated the highest revenue in 2021.
• On the basis of enterprise size, the large enterprise segment generated the highest revenue in 2021.

The key players profiled in the financial services software market analysis are Accenture, Finastra, FIS, Fiserv, Inc., IBM Corporation, Infosys, Oracle Corporation, SAP SE, TCS, and Temenos. These players have adopted various strategies to increase their market penetration and strengthen their position in the financial services software industry.