In 2023, the number of data compromises in the financial services industry in the United States reached 744, up from 138 such incidents in 2020. The financial services sector was the second-most targeted industry by cyber security incidents resulting in data compromise. The number of data compromises includes data breaches, as well as exposure and leakage of private data.

The Report Covers Global Financial Services Application Market Trends & Industry Overview and It is Segmented by Offering (Software, Service), Deployment (Cloud, On-Premise), Size of Enterprise (Small and Medium Enterprise, Large Enterprise), and Geography. The Market Sizes and Forecasts are in Terms of Value (USD) for all the Above Segments.

This forecast shows the financial services companies' IT spending share worldwide in 2021, broken down by industry. In 2021, it is forecast that the banking sector's IT spending will amount to 57 percent of the overall IT spending in the financial services sector.

This statistic depicts the gross domestic product (GDP) share of the financial services industry of Hong Kong from 2013 to 2023. In 2023, the financial services industry accounted for around 24.9 percent of the local GDP in Hong Kong.

The United States financial services market size attained a value of USD 60.65 Billion in 2024. The market is expected to grow at a CAGR of 7.47% between 2025 and 2034, reaching almost USD 124.65 Billion by 2034.

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Financial Service Application Market Size 2024-2028

The financial service application market size is forecast to increase by USD 60.9 billion at a CAGR of 8.12% between 2023 and 2028.

The market is experiencing significant growth, driven by several key trends and factors. Firstly, there is an increasing push from governments worldwide to digitalize the financial sector, leading to an increase in demand for digital financial services. Secondly, customers are becoming more aware of the benefits of finance and digitization, leading to a rise in the adoption of financial applications. However, this growth comes with challenges, particularly around privacy and security concerns, which must be addressed to ensure customer trust and confidence in these platforms. Business analytics tools and real user monitoring are essential components of modern financial applications, enabling institutions to gain valuable insights from financial data and ensure optimal performance. Training and support services and operations & maintenance are also crucial for ensuring smooth implementation and ongoing functionality. As such, financial institutions and tech companies must prioritize strong security measures and transparent data handling practices to meet the evolving needs of consumers and regulatory requirements.

What will be the Size of the Financial Service Application Market During the Forecast Period?

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The market is witnessing significant growth due to the increasing adoption of digital technology in the financial sector. Software solutions, including online banking, portfolio management, and business transaction processing, are in high demand as financial institutions seek to enhance customer experience and streamline operations. Deployment options for these applications include both cloud-based services and on-premises solutions, with the former gaining popularity for their flexibility and cost-effectiveness.
Moreover, large enterprises are significant contributors to the market, with their complex business requirements driving the need for advanced, feature-rich applications. However, the shift to digital also presents new challenges, such as cyberthreats and data security concerns, which must be addressed through strong security measures and compliance with regulatory frameworks. Overall, the market is poised for continued growth, driven by the increasing digitalization of financial services and the demand for innovative, user-friendly solutions.

How is this Financial Service Application Industry segmented and which is the largest segment?

The financial service application industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2017-2022 for the following segments.

End-user

  Large enterprise
  Small and medium enterprise


Deployment

  On-premise
  Cloud-based


Geography

  North America

    Canada
    US


  Europe

    Germany
    UK


  APAC

    China


  South America



  Middle East and Africa

By End-user Insights

The large enterprise segment is estimated to witness significant growth during the forecast period.

In the financial sector, large enterprises such as multinational banks, insurance companies, and asset management firms, are major contributors to The market. Notable entities in this category include JPMorgan Chase, HSBC, Allianz, and BlackRock. These organizations demand sophisticated software solutions to manage their intricate financial operations, which involve handling vast transaction volumes, sophisticated risk management, regulatory compliance, and in-depth financial reporting. Leading companies catering to these large enterprises include Oracle and IBM. Oracle's Financial Services Analytical Applications provide comprehensive business intelligence and risk management solutions. IBM, with its expertise in artificial intelligence and cloud computing, offers advanced financial analysis, fraud detection, and regulatory compliance applications.

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The large enterprise segment was valued at USD 60.10 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 36% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market caters to the demands of Small and Medium-sized Businesses (SMBs) and Large Enterprises for advanced solutions in areas such as Portfolio management, Data warehousing, and Reporting. These a

The Report Covers the Financial Desktop Virtualization Services Market Forecast and Analysis. The Market is Segmented by Desktop Delivery Platform (Hosted Virtual Desktop (HVD), Hosted Shared Desktop (HSD), Other Desktop Delivery Platform), by Deployment Mode (On-Premises, Cloud), and by Geography (North America, Europe, Asia Pacific, Latin America, Middle East and Africa). The Market Sizes and Forecasts are in Terms of Value (USD) for all the Above Segments.

The statistic above presents employment data of the Hong Kong financial services industry from 2013 to 2023, by sector. In 2023, about 97,100 people were employed in the banking industry in Hong Kong.

Revenue growth for the Finance and Insurance sector has varied in recent years, as a result of differing economic trends. The sector plays a vital role in facilitating necessary financial transactions between consumers, businesses and government agencies. The core services provided by operators in this sector include providing insurance products needed by businesses and consumers to legally operate corporations and assets; offering, borrowing and depository services needed to finance new projects and safely save money; and investing to create and preserve investors' assets. A wide range of operators in the sector benefited from improving macroeconomic conditions over the past five years. For example, In 2022, the Fed increased interest rates in an effort to curb historically high inflation. Although higher interest rates increased investment income from fixed-income securities for the finance and insurance sector. Recently in 2024, the Fed cut interest rates as inflationary pressured have eased. Reduced interest rates will enable consumers to borrow money at lower interest rates which will increase loan demand although reduced rates will hinder investment income from fixed-income securities for the sector. The Fed is anticipated to cut rates further in 2025, boosting loan demand but hindering interest income from each loan. In addition, the growing prevalence of emerging technologies such as AI and data analytic tools has streamlined operations and helped reduce operational costs. These tools help industry companies identify trends and potential risks more efficiently. Also the growth of mobile and digital platforms has increased customer satisfaction and accessibility, boosting demand for finance and insurance products and services. Over the past five years, industry revenue grew at a CAGR of 3.8% to $7.4 trillion, including a 2.9% jump in 2025 alone, with profit climbing to 23.6% in the same year. Sector revenue will increase at a CAGR of 2.5% to $8.4 trillion over the five years to 2030. As the economy continues to improve, per capita disposable income is expected to increase. This will likely lead to increased financial activity by consumers, which will likely be processed and facilitated by operators in the sector. The Federal Reserve is also anticipated to cut interest rates further. Reduced interest rates will reduce interest income for operators but will increase the volume of loans. In addition, the acquisition of financial technology start-ups to compete in a changing technological and financial environment will increase.

Back Office Outsourcing in Financial Services Market size is valued at USD 145.37 Billion in 2024 and is projected to reach USD 296.1 Billion by 2031, growing at a CAGR of 9.30% during the forecast period 2024-2031.

Back Office Outsourcing in Financial Services Market Drivers

Cost Reduction and Efficiency: Outsourcing back-office functions can lead to significant cost savings due to economies of scale and access to lower-cost labor markets.
Focus on Core Competencies: By outsourcing non-core activities, financial institutions can concentrate on their core business, such as customer acquisition and relationship management.
Access to Specialized Expertise: Outsourcing providers offer specialized expertise and technology in areas like data processing, customer service, and compliance, ensuring efficient and high-quality operations.

Back Office Outsourcing in Financial Services Market Restraints

Data Security Concerns: Outsourcing sensitive financial data can raise concerns about data security and privacy breaches.
Vendor Management Challenges: Managing relationships with multiple outsourcing providers can be complex and time-consuming

Explore the global financial services market, featuring technological advancements, market trends, fintech innovations, and the expanding role of digital banking and mobile payments in the evolving landscape.

Explore the detailed segmentation analysis of the Iot Banking Financial Services market. Understand detailed breakdown for each segment and uncover market opportunities.

According to an October 2024 survey, over 90 percent of European financial industry experts predicted AI integration could eliminate up to 10 percent of roles in the sector. A significant minority anticipated even greater impact - up to 25 percent of positions potentially affected. Entry-level jobs face the highest risk, with 59 percent of respondents identifying these positions as most vulnerable. Regarding regulatory readiness, a mere 11 percent of surveyed leaders considered their organizations prepared for upcoming AI regulations. Limited understanding and experience emerged as the predominant concern about generative AI, followed by uncertainty surrounding regulatory implications.

Graph and download economic data for Value Added by Industry: Finance, Insurance, Real Estate, Rental, and Leasing: Finance and Insurance as a Percentage of GDP (VAPGDPFI) from Q1 2005 to Q3 2024 about value added, financing, leases, finance, insurance, rent, real estate, private industries, percent, private, industry, GDP, and USA.

Forecast: Employment in Financial Services Sector in Sweden 2024 - 2028 Discover more data with ReportLinker!

The size and share of the market is categorized based on Application (Large Players, Small Players) and Product (Hardware, Software, Services) and geographical regions (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

Global financial services market size is expected at $62,554.78 billion in 2033 at a growth rate of 7.22%

Contains data from the World Bank's data portal. There is also a consolidated country dataset on HDX.

An economy's financial markets are critical to its overall development. Banking systems and stock markets enhance growth, the main factor in poverty reduction. Strong financial systems provide reliable and accessible information that lowers transaction costs, which in turn bolsters resource allocation and economic growth. Indicators here include the size and liquidity of stock markets; the accessibility, stability, and efficiency of financial systems; and international migration and workers\ remittances, which affect growth and social welfare in both sending and receiving countries.

Market Overview and Drivers The Big Data market in the financial services industry is expected to reach a staggering $185 million by 2033, growing at a remarkable CAGR of 13.2%. The rapid adoption of Big Data in financial services stems from its ability to manage and analyze vast volumes of data, enabling institutions to gain valuable insights, enhance risk management, and personalize customer experiences. Key drivers include the need for real-time decision-making, compliance and risk management, and the growing demand for personalized financial services. Market Segmentation and Trends The Big Data market in financial services is segmented by application (banks, insurers, etc.) and type (software and service, platform). The banking segment dominates the market, followed by the insurance and personal finance segments. Software and service providers hold a significant share, as financial institutions rely on third-party vendors for data analytics and management solutions. Key trends include the rise of cloud-based Big Data platforms, the integration of AI and machine learning into data analysis, and the increasing adoption of Big Data in fraud detection and prevention.

The Report Covers Global Advanced Authentication Companies and the Market is Segmented by Authentication Type (Smartcards, Biometrics, Mobile Smart Credentials) and Geography.