In 2014 Technavio analysts noted the expected increase investment in BI banking software. Today, this has vaulted past big data and into ai (artificial intelligence) and machine learning. BI or also bibanking is no longer a single solution, but a toolkit of data visualization, adaptive learning, and competitive intelligence all rolled into a bundle.
This is an update to a previously written post, published on November 24, 2014 as can be seen below.
Bank IT Spending is expected to increase by over $US 30 billion thanks to a surge in demand for Business Intelligence (BI) banking software in the retail sector and customer-centric core banking.
This increase in demand for BI banking software across multiple sectors is driving Bank IT Spending Market growth at an anticipated CAGR of 4.75 percent for the 2013-2018 period.
Key Applications of BI Banking Software
BI offers real-time analytics tools for better implementation and management of Big Data. BI banking software is capable of increasing the productivity of banks by providing valuable insights into the purchasing behavior of their customers.
Thus, banks are aggressively adopting BI Software tools to target customers with specific requirements. The software would further help streamline the core banking operations to include reporting, documentation, and data management.
Is Big Data Analytics Necessary for the Banking Sector?
Banks have a huge amount of data but are yet to explore how to make optimum use of this information. The Banking sector is looking to interpret data for marketing purposes, and big data analytics provides key solutions in this regard.
The unstructured data with banks can be used to analyze customer spending patterns. It can help increase their profits by using big data to launch more customer-oriented products.
The rapid transformation of banking channels thus mandates the adoption of big data analytics in the Global Banking sector.
Services: An Area of Stiff Competition
Across the globe, Services segment in the Banking sector has witnessed stiff competition as they promote the critical needs of any banking business. This includes development and maintenance of an agile and flexible core banking environment along with innovative payment and transaction services.
The adoption of BI Software has increased competitiveness among banks. Several mid and low-tier banks have switched over to BI Softwares and so have large-sized banks. With worldwide presence, these banks are spending considerably towards BI Softwares to stay ahead of the competition.
Emerging BI Banking Software Markets
The Bank IT Spending market in emerging geographies, particularly in the APAC region, is growing at a much faster pace, and it is expected to dominate the Global Bank IT Spending market in the future.
Some of the factors that propel the growth of the Bank IT Spending market in the APAC region are the demand for online and mobile banking IT solutions and an increased usage of customer-oriented banking in emerging countries such as China and India.
