What Has Been The Historical And Current Growth Of The Predictive Analytics in Banking Market?
The predictive analytics in banking market has seen considerable growth due to a variety of factors.
• In recent times, the predictive analytics market in banking has seen rapid expansion. It is expected to grow from a worth of $3.84 billion in 2024, to $4.64 billion in 2025, at a compound annual growth rate (CAGR) of 21.0%.
Factors driving this growth during the historical period include credit risk evaluations, measures for detecting and preventing fraud, customer segmentation, personalization, adherence to regulations, and increased operational efficiency.
What Are The Estimated Market Size And Expected Annual Growth Rates For Globa Predictive Analytics in Banking Market?
The predictive analytics in banking market is expected to maintain its strong growth trajectory in upcoming years.
• In the forthcoming years, a significant surge is anticipated in the banking market for predictive analytics, with it expected to reach $9.85 billion in 2029 at a 20.7% compound annual growth rate (CAGR). This growth for the projected period can be linked to factors such as artificial intelligence and machine learning, large data and immediate analytics, regulatory constraints and compliance, and escalated customer expectations for individualization as well as cybersecurity and fraud deterrence. Predicted future trends comprise enhanced customer interactions through personalization, AI and machine learning integration for improved predictive models, immediate predictive analytics for quick decision making, heightened emphasis on cybersecurity and fraud deterrence, and regulatory adherence and risk management.
Which Factors Are Boosting Growth In The Predictive Analytics in Banking Market?
The banking market's expansion of predictive analytics is anticipated to be driven by an escalating number of fraudulent acts. These are deliberately misleading actions or schemes designed to deceive individuals or organizations for personal or monetary advantage. The pervasiveness of these practices in the banking industry is on the rise, as cyberattacks increase and digital banking services become more commonly used. Predictive analytics plays a vital role in minimizing these fraudulent acts within banking, utilizing sophisticated algorithms to spot and highlight unusual patterns and behaviors in real time. This leads to a more proactive approach in detecting and preventing fraud. For instance, the Federal Trade Commission, a government agency in the US, reported that consumers in February 2024 had lost more than $10 billion to fraud in the previous year, showcasing a 14% rise from the losses reported in the earlier year. Hence, the growth of predictive analytics in the banking market is being fueled by the growing prevalence of fraudulent activities.
What Are The Key Segments Within The Global Predictive Analytics in Banking Market?
The predictive analytics in banking market covered in this report is segmented –
1) By Type: Marketing, Sales, Finance, Human resource, Operations
2) By Component: Solution, Services
3) By Deployment Model: On-Premise, Cloud
4) By Application: Small And Medium Enterprises (SMES), Large Enterprises
Subsegments:
1) By Marketing: Customer Segmentation And Targeting, Campaign Management And Optimization, Customer Lifetime Value Prediction, Churn Prediction and Retention Strategies, Market Trend Analysis, Brand Sentiment Analysis
2) By Sales: Lead Scoring and Opportunity Management, Sales Forecasting And Trend Analysis, Cross-Selling And Up-Selling Strategies, Sales Performance Optimization, Conversion Rate Prediction, Territory Management
3) By Finance: Credit Scoring And Risk Assessment, Fraud Detection And Prevention, Financial Forecasting and Budgeting, Loan Default Prediction, Asset Management And Investment Analysis, Regulatory Compliance Analytics
4) By Human Resource: Employee Attrition Prediction, Talent Acquisition And Recruitment Optimization, Workforce Planning And Optimization, Employee Performance Analytics, Learning and Development Needs Prediction, Compensation And Benefits Analysis
5) By Operations: Process Efficiency Optimization, Operational Cost Prediction And Management, Resource Allocation And Scheduling, Transaction Monitoring And Anomaly Detection, Supply Chain Management Optimization, Automation Of Operational Tasks
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How Are New Trends Impacting The Size Of The Predictive Analytics in Banking
Leading businesses in the predictive analytics in banking market are advancing their offerings by introducing innovative solutions like artificial intelligence (AI)-based data analytics platforms. These platforms have the capacity to manage business data and interpret it efficiently, thereby allowing swift insights and better-informed decision-making protocol. They amplify banking systems by employing advanced data processing, predictive modeling, and pattern identification to maximize risk management, tailor customer experiences, detect possible frauds, smooth the operations, and identify new avenues for growth. For example, TransUnion, an IT firm based in the US, in March 2024, introduced OneTru, an AI-rich data analytics platform intended to strengthen data accessibility and decision-making strategies for financial institutions. This cloud-oriented platform blends data analytics, credit risk evaluation, and fraud detection solutions in a single portal by harnessing the power of artificial intelligence and machine learning. OneTru merges scattered data sources which enable users to effortlessly access credit bureau, consumer identity, and marketing data. The combined setup aims to enhance the speed and quality of analytics, thus leading to quicker insights and decisions for clients.
Who Are the Key Players in the Predictive Analytics in Banking Market?
Major companies operating in the predictive analytics in banking market are include:
•Microsoft Corporation
• Amazon Web Services Inc.
• International Business Machines Corporation
• Oracle Corporation
• SAS Institute Inc.
• Turing Analytics
• Databricks Inc.
• Alteryx Inc.
• H2O.ai
• EdgeVerve Systems Limited
• Google Cloud
• Dataiku
• Datarobot Inc.
• Feature Labs
• KNIME
• Altair Engineering Inc.
• Rasa
• Peltarion
• Auger.AI
• BigML
• Big Squid Inc
• dotData Inc.
• Determined.ai Inc.
• Turi
What are the Regional Insights into the Predictive Analytics in Banking Market?
North America was the largest region in the predictive analytics in banking market in 2024. The regions covered in the predictive analytics in banking market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
