Global Finance Cloud Market Analysis by Component, Enterprise Size, Application, Deployment Type, Region and segments forecast till 2033

Market Overview

The finance cloud market size is estimated to grow from USD 36,660 million by 2022, at an estimated CAGR of 24.4% to reach a value of USD 210,060 million in 2033.

Report Scope

Global Finance Cloud Market- Description

Cloud is a network where programs run and can be accessed by many devices or servers at a time. It is a modern suite of powerful software options to manage the company’s finances. Moreover, it uses different finance management tools to prepare budgets, sends out invoices, account for all expenses, approves purchase requests, and handle payments. The finance cloud software helps companies to keep real-time track of expenses, assets, sales, and purchases. Companies are exploring the cloud and its advantages. Financial cloud software allows enterprises to achieve revenue and wealth management while maintaining customer relations. It creates a better customer experience. The business becomes more agile while eliminating miscommunication and manual errors.

Banking services and financial and insurance companies are opting for digital applications to quickly address customers’ queries and concerns by keeping in mind the long-term benefits as well as achieving a competitive advantage. For instance, Ess Kay Fincorp chose a cloud-based lending platform to digitize its entire lending business for decreasing its loan approval time by 33%. Operational efficiency is another factor driving the growth of the finance cloud market. Roha Housing Finance wanted to issue loans within two hours instead of three days. After adopting the agility and cost efficiency of cloud-based technology to offer a ‘customer-first’ approach, it was able to offer end-to-end loan processing in seven days, which is 50% faster than the housing finance industry benchmark.

Key Trends of the Global Finance Cloud Market:

·         Rise in Need for Operational Efficiency & Transparency in Business Processes

Traditionally, most of businesses invest time and effort in communicating business information and making decisions. Organizations aiming at becoming successful continuously seek systems that will help them serve their clients and increase their profit margin. Presently, cloud solutions have become strategic platforms, providing a solid foundation and information backbone for financial companies. Several financial institutions are using a hybrid mix of public and private clouds for handling back-office functions and core business processes such as payments and credit risk management.

·         Higher Investment & Maintenance Costs

The initial investment to acquire and implement a cloud system is substantial. Global software vendors such as Microsoft, SAP, Oracle, and IBM Corp. charge high costs for their solutions. In addition, these software vendors charge high fees for maintenance and support functions. The total annual cost of maintaining and updating the cloud system includes internal costs, external costs, and maintenance & support fees paid annually to cloud vendors.

Segmental Analysis of the Global Finance Cloud Market:

Based On Component:

• Solution

• Financial Forecasting

• Financial Reporting and Analysis

• Security

• Governance, Risk, and Compliance

• Policy Management

• Audit Management

• Compliance Management

• Incident and Risk Management

• Others

• Service

The security solution is expected to grow at the highest CAGR during the forecast period, followed by governance, risk, and compliance. Many financial organizations feel that security and risk related to in-house can be easily controlled compared to Cloud. Due to critical data confidentiality, compliance, and legal issues, cloud-based security solutions are gaining huge demand in the financial sector.

Based On Enterprise Size:

• Large Enterprises

• Small and Medium Enterprises

Based On Deployment Model:

• Private Cloud

• Public Cloud

• Hybrid Cloud

Based On Application:

• Revenue Management

• Business Management

• Asset Management

• Customer Relationship Management

• Enterprise Resource Planning

• Others

The customer management application is growing with the highest CAGR during the forecast period. In the banking and financial sector, customer response, feedback, and satisfaction with respect to solutions and service is a must. Therefore, customer management is one of the major applications catered to by the finance cloud vendors and is expected to grow during the forecast period.

Global Finance Cloud Market: Geographical Analysis

The global finance cloud market is further segmented into five major regions- North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. Financial institutions across the Asia-Pacific region are embracing digital transformations and coming out to be the largest revenue shareholder in the global finance cloud market. This is allowing them to be more cost-efficient. In India, through Fintech initiatives, like Jan Dhan Yojana, Aadhaar, and the Unified Payments Interface (UPI), the Government of India is working toward digitizing payment systems and increasing financial inclusion. The New Zealand Government maintains a 'Cloud First' policy through which it seeks to be open to the benefit of emergent technologies and act as a leader in cloud adoption.

Global Finance Cloud Market: Recent Developments

·         In in March 2021, Oracle announced the launch of Oracle Financial Services Data Lake, a cloud-based platform designed to help financial institutions better manage their data. The platform is aimed at improving financial institutions' access to data and analytics, and enhancing their risk management and compliance capabilities.

·         IBM Partners with Bank of America to Launch Financial Cloud: In February 2021, IBM announced a collaboration with Bank of America to develop a financial services cloud platform. The platform is intended to provide financial institutions with a secure, flexible, and scalable infrastructure to support their digital transformation efforts.

Global Finance Cloud Market: Key Companies

·         Amazon Web Services, Inc.

·         Acumatica, Inc.

·         ARYAKA NETWORKS, INC.

·         Cisco Systems, Inc.

·         International Business Machines Corporation

·         Microsoft

·         Oracle

·         SAP SE

·         Unit4

·         Sage Group plc.

·         Others

Global Finance Cloud Market: Regional Scope   

North America

·         U.S.

·         Canada

·         Mexico

Europe

·         U.K.

·         Germany

·         France

·         Italy

·         Spain

·         Rest of Europe

Asia Pacific

·         China

·         India

·         Japan

·         South Korea

·         Australia

·         Rest of Asia Pacific

South America

·         Brazil

·         Argentina

·         Rest of South America

Middle East and Africa

·         Saudi Arabia

·         UAE

·         Egypt

·         South Africa

·         Rest of Middle East and Africa

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