The Latest Financial Software Industry Statistics Explained
North America accounted for 40.7% of the global financial services application market in 2018.
The statistic indicates that North America held a significant portion, specifically 40.7%, of the worldwide financial services application market in the year 2018. This means that a significant portion of financial services applications, which could include software, platforms, and tools tailored for the financial industry, were being used or sold in North America compared to other regions across the globe. The high market share in North America suggests the region’s strong presence and influence in driving innovation, investments, and advancements within the financial services technology sector during that time.
Europe is estimated to show a CAGR of 7.5% in the financial software industry, 2020-2025.
The statistic “Europe is estimated to show a compound annual growth rate (CAGR) of 7.5% in the financial software industry, 2020-2025” indicates the projected average annual growth rate of the financial software market in Europe over the five-year period from 2020 to 2025. A CAGR of 7.5% suggests a steady and considerable growth trajectory for the industry during this period. This statistic provides valuable insights into the expected expansion of the financial software market in Europe, highlighting the potential opportunities for businesses operating in the industry and indicating a positive trend in terms of market demand and adoption of financial software solutions in the region.
68.7% of accountants prefer cloud-based financial software for financial analysis.
The statistic that 68.7% of accountants prefer cloud-based financial software for financial analysis indicates that a significant majority of accountants have a preference for using digital tools over traditional methods for analyzing financial data. This preference likely stems from the convenience, accessibility, and potentially greater efficiency afforded by cloud-based software in organizing and processing financial information. The statistic suggests that accountants recognize the benefits of leveraging technology to enhance their analysis capabilities, potentially leading to more accurate and timely decision-making in financial matters. The high percentage of accountants favoring cloud-based financial software highlights a shift towards modern, digital solutions in the field of accounting.
The Financial Software and Financial Information Service sector employs over 135,000 people in London.
The statistic indicates that the Financial Software and Financial Information Service sector in London provides employment opportunities for more than 135,000 individuals. This signifies a significant workforce within this specific sector, highlighting its importance and contribution to the overall economy of London. The sector likely plays a crucial role in the financial services industry, providing software solutions and information services that are essential for financial institutions, businesses, and individuals. The large number of employees in this sector also suggests a high level of demand for their services, further emphasizing its significance in the financial landscape of London.
65% of large companies are actively investing in blockchain for financial transactions.
The statistic ‘65% of large companies are actively investing in blockchain for financial transactions’ indicates that a significant portion of large companies are adopting blockchain technology for their financial operations. This suggests a growing recognition among organizations of the benefits that blockchain can offer in terms of security, transparency, and efficiency in conducting financial transactions. The high percentage of companies investing in blockchain also implies a trend towards widespread implementation of this innovative technology in the corporate sector, signaling a shift towards more modern and secure methods of managing financial transactions.
In 2019, the financial services market’s largest segment was lending and payments at 51.4%.
This statistic indicates that in 2019, within the financial services market, the most dominant segment in terms of market share was lending and payments, accounting for 51.4% of the overall market. This suggests that a significant portion of the financial services industry was dedicated to providing and facilitating loans as well as processing payment transactions during that year. The high percentage share of lending and payments underscores the importance of these services within the financial sector and highlights the substantial demand for borrowing and payment processing activities among consumers and businesses. This statistic provides valuable insights into the market dynamics and preferences within the financial services industry in 2019.
82% of banks plan to increase their partnerships with fintech within the next three to five years.
The statistic that 82% of banks plan to increase their partnerships with fintech within the next three to five years indicates a significant trend towards collaboration between traditional financial institutions and innovative financial technology companies. This suggests that banks recognize the potential benefits of leveraging fintech solutions to enhance their services, improve operational efficiency, and adapt to changing consumer preferences. By forming partnerships with fintech firms, banks can tap into new technologies, expand their product offerings, and stay competitive in an evolving financial landscape. This statistic reflects a strategic approach by banks to embrace digital transformation and innovation in order to meet the demands of modern banking customers.
Approximately 45% of financial intermediaries such as e-payment providers are prone to financial crimes.
This statistic indicates that a significant proportion, around 45%, of financial intermediaries such as e-payment providers are vulnerable to financial crimes. Financial intermediaries play a crucial role in facilitating financial transactions, but their susceptibility to criminal activities poses risks to the integrity of the financial system. These crimes may include money laundering, fraud, and other illicit activities that can have severe economic consequences. It underscores the importance of effective regulatory oversight and risk management practices within the financial services industry to protect against such criminal behaviors and safeguard the integrity of the global financial system.
Spend on AI by Wall Street is projected to grow at a 22% CAGR, reaching $27.6bn in total spend by 2023.
The statistic indicates that the amount of money invested by Wall Street in artificial intelligence (AI) technology is expected to increase steadily over time. The compound annual growth rate (CAGR) of 22% implies that the spending on AI is expected to grow by an average of 22% each year. By the year 2023, it is projected that Wall Street will have invested a total of $27.6 billion in AI technologies. This suggests a strong commitment by Wall Street firms to leverage AI capabilities in various aspects of their operations, such as data analysis, risk management, trading algorithms, and customer service, in order to enhance efficiency, decision-making, and overall competitiveness in the financial industry.
A 2020 risk report noted that financial institutions cited “legacy IT” as one of the top business risks.
The statistic that a 2020 risk report noted financial institutions citing “legacy IT” as one of the top business risks suggests that outdated or obsolete information technology systems pose significant challenges and vulnerabilities for these institutions. Legacy IT systems typically refer to older technology infrastructure, software, or applications that may no longer be efficient, secure, or compliant with current industry standards and regulations. Financial institutions rely heavily on technology to operate effectively and securely, so any risks associated with outdated systems could potentially lead to operational disruptions, data breaches, compliance issues, and negative impacts on customer trust and financial performance. Addressing the risks associated with legacy IT systems is crucial for financial institutions to adapt to the rapidly changing technological landscape and stay competitive in the industry.
Around 63% of bankers see the speed of new technology adoption as their top challenge.
The statistic indicating that around 63% of bankers view the speed of new technology adoption as their primary challenge suggests a significant concern within the banking industry regarding the pace at which technology is evolving and being incorporated into their operations. This statistic highlights the importance of keeping up with advancements in technology to remain competitive in the market, streamline processes, and meet the changing needs of customers. It implies that a majority of bankers recognize the critical role that technological advancements play in their industry and are likely seeking ways to address this challenge in order to stay relevant and efficient in the rapidly evolving digital landscape.
Worldwide spend on financial software products in the banking industry was predicted to grow by more than $3.3 billion between 2019 and 2023.
The statistic indicates that the total expenditure on financial software products within the banking industry worldwide is estimated to increase by over $3.3 billion from 2019 to 2023. This prediction suggests a notable growth in investment in software solutions tailored for financial institutions over the specified time period. Such an expansion in spending could be driven by factors such as increasing digitization efforts, technological advancements, regulatory requirements, and the need for more sophisticated tools to manage financial operations efficiently and securely in an evolving industry landscape. This anticipated rise in financial software spend underscores the sector’s recognition of the importance of leveraging technology to enhance operational capabilities, streamline processes, and meet the ever-changing demands of the global financial services market.
Ant Financial, a Chinese financial software company, raised the highest amount of capital in the FinTech sector, roughly $14 billion in 2018.
The statistic indicates that in the year 2018, Ant Financial, a prominent Chinese financial software company, secured the largest amount of funding within the FinTech sector, obtaining approximately $14 billion. This substantial financial backing highlights the remarkable growth and significance of Ant Financial in the financial technology industry. The significant investment in Ant Financial suggests that investors have a strong belief in the company’s business model, potential for innovation, and overall market performance. This statistic underscores Ant Financial’s position as a key player in the rapidly evolving FinTech landscape and reflects the increasing interest and confidence investors have in companies operating at the intersection of finance and technology, particularly in China where the FinTech industry is experiencing a period of robust expansion.
70% of businesses are planning to maintain or increase their spending on financial software in 2021 despite COVID-19 disruptions.
The statistic that 70% of businesses are planning to maintain or increase their spending on financial software in 2021 despite COVID-19 disruptions suggests that the majority of businesses see value in investing in financial software even during challenging times. This indicates a recognition among businesses of the importance of efficient financial management, possibly driven by the need for accurate financial forecasting, cost control, and overall financial stability amidst the uncertainties brought about by the pandemic. The decision to maintain or increase spending on financial software reflects a strategic approach by businesses to adapt to the changing economic landscape and ensure their financial health and resilience in the face of ongoing disruptions.
Approximately 48% of financial services leaders believed there will be a significant investment in advanced analytics in the next three years.
The statistic suggests that nearly half, specifically 48%, of financial services leaders anticipate a substantial increase in investments towards advanced analytics over the next three years. This indicates a growing trend within the industry towards utilizing sophisticated data analytics tools and techniques to gain valuable insights, make informed decisions, and improve overall business processes. The high percentage of leaders expressing this belief implies a strong consensus and commitment towards leveraging advanced analytics to drive innovation and strategic decision-making in the financial services sector in the near future.
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