The global finance cloud market size was valued at USD 14.47 Billion in 2022 and is expected to surpass USD 94.41 Billion by 2031, expanding at a CAGR of 23.17% during 2023-2031. The growth of the market is attributed to the increasing demand from banking and insurance companies for digital applications, growing requirements for operational efficiency, and rising cyber threats to the financial sector.
Finance cloud is employed to manage an organization’s financial planning on cloud computing. It manages operations to run the financial infrastructure more efficiently and scale business needs as per change. It arms business operations and finance teams with an ecosystem of connected tools to manage accounts, create financial reports, process payments, handle payroll, and manage budgets. For instance,
- In June 2023, Wipro a multinational corporation that provides consultant, information technology, and business process services declared the launch of an innovative suite of banking and financial services solutions built using Microsoft Cloud. This partnership is expected to put forward Microsoft Cloud functionalities with Wipro FullStride Cloud and strengthen Capco’s and Wipro’s deep financial expertise.
Clients accelerate their growth with these new solutions as the finance cloud enables businesses with the affordability of financial and operational tools and benefits such as cost-effectiveness, lower maintenance charges, a subscription-based pricing model, and access to data from anywhere and anytime.
The research report finds that the COVID-19 pandemic boosted the finance cloud market. The economy slowed down, due to the increased cases of COVID-19. However, various organizations such as financial services, banking, and insurance sectors continued operating during this crucial time. Financial services adopt remote working which in turn increases the investments in cloud-based infrastructure.
Financial system implementations and accounting in the cloud environment are not that much different than those in an on-premises environment. Moreover, the cloud environment offers flexibility to carefully plan out project timings, responsibilities, data migration, and accounting structure. It keeps internal operations running effortlessly in the post-pandemic scenario. For instance,
- In May 2021, Google Cloud introduced a data share solution for financial services. This solution enables the sharing of market data with ease and enhanced security across the major markets including investment banks, assets managers, hedge funds, and market data issuers similar to providers and exchangers.
Impact of Artificial Intelligence on the Finance Cloud Market
Integrating new technology turns out to be a threat, amplifying the burden on all organizations that provide AI-based services. Organizations in the market are working towards combating the risk of fraud. Financial services take the help of artificial intelligence to combat fraud effectively. It helps them to understand the customer and their behavior by optimizing the customer experience and collecting data.
It assists payment providers in automating aspects of cybersecurity by analyzing and continuously monitoring network traffic. Furthermore, it enhances the client-first approach (chatbots) with a personalized and flexible digital banking experience that is anticipated to meet client needs securely. The advent of the finance cloud has enabled businesses with the affordability of financial as well as operational tools and benefits such as cost-effectiveness and lower maintenance charges.
Finance Cloud Market Dynamics
Major Drivers
Increasing demand for the deployment of applications through the cloud, and growing requirements for customer management, operational efficiency, and business agility are anticipated to drive the market during the forecast period. Furthermore, the rising growth of the industries offering cloud services and the need for cost-effective solutions is expected to boost the market in the coming years.
Existing Restraints
Increasing concerns over regulatory compliances and complexities involving the protection of intellectual property rights (IPR) are major factors anticipated to hinder the market expansion during the forecast period. Additionally, concerns over data privacy, service provider reliability, and disaster recovery are expected to impede market growth.
Emerging Opportunities
Increasing adoption of the finance cloud computing technology by large corporations and emerging technologies with cloud solutions are projected to offer significant opportunities for the market players. For instance,
-
In November 2021, Amazon Web Services, Inc., announced a long-term partnership with Nasdaq, Inc. to develop a next-generation technology cloud-based infrastructure for key markets across the globe. This technology is open to other market players and infrastructure operators to relocate their trading platforms to the cloud.
Scope of the Finance Cloud Market Report
The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics are included in the report.
| Attributes |
Details |
| Report Title |
Finance Cloud Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast |
| Base Year |
2022 |
| Historic Data |
2016–2021 |
| Forecast Period |
2023–2031 |
| Segmentation |
Type (Solution [Governance, Risk & Compliances, Security, Financial Reporting & Analysis, and Financial Forecasting] and Service [Managed Services and Professional Services]), Application (Financial Forecasting, Financial Reporting and Analysis, Risk and Compliance, Managed Services, Revenue Management, Wealth Management, Account Management, Customer Relationship Management, and Others), Deployment (Public Cloud, Private Cloud, and Hybrid Cloud), and End-user (Insurance and Banking & Financial Services) |
| Regional Scope |
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa |
| Report Coverage |
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast |
| Key Players Covered in the Report |
CloudSigma Holding AG; Microsoft; Alphabet Inc.; IBM Corporation; Red Hat; Hewlett Packard Enterprise Development LP; SAP; Kamatera; VMware; Salesforce; Verizon; ServiceNow; Oracle; Alibaba Cloud; DigitalOcean Holdings. Inc.; Cisco Systems; Workday. Inc; Adobe; and Logicworks.
|
Finance Cloud Market Segment Insights
Type Segment Analysis
Based on type, the market is bifurcated into solution and service. The solution segment is further fragmented into governance, risk & compliances, security, financial reporting & analysis, and financial forecasting. The service segment is further bifurcated into managed services and professional services. The service segment is projected to account for a large market share, due to reduced IT costs, scalability, business continuity, collaboration efficiency, and flexibility of services in accordance with work practices.
Finance cloud service provide businesses with faster implementation, anywhere access to applications and content, and higher utilization of infrastructure investments which is expected to drive market expansion in the coming years.
The solution segment is anticipated to account for a considerable market share during the forecast period, as companies are integrating cloud solutions to improve efficiency and ensure significant information integration. Financial companies need access to all important information at a rapid pace to take needed business action, due to the augmented competition and quick changes in a business environment.
Cloud solutions enhance transparency and efficiency in business operations. In terms of security financial cloud platforms run entirely in a secure cloud environment. The software works seamlessly in sync which allows organizations to build their own solutions which integrate efficiently.
Application Segment Analysis
On the basis of application, the finance cloud market is segmented into financial forecasting, financial reporting and analysis, risk and compliance, managed services, revenue management, wealth management, account management, customer relationship management, and others.
Customer relationship management segment is expected to expand at a significant pace in the coming years, due to its increasing demand from the banking and financial sector for integrated tools to manage customer query resolution, satisfaction, and feedback. Customer relationship management with AI improves customer experience and feedback and is expected to develop a strong bond with several company’s customers.
The managed services and account management segment are projected to grow at a steady CAGR during the forecast period, owing to the increasing adoption of financial cloud management tools and their integration into business operations for improving efficiency. Several enterprises obtain various benefits by using cloud-based management software solutions, including financial accountability, effective operations, accurate tracking, and simple reporting.
Deployment Segment Analysis
In terms of deployment, the finance cloud market is segregated into public cloud, private cloud, and hybrid cloud. The public cloud segment is projected to exhibit a high CAGR during the forecast period, owing to the increasing demand for public cloud infrastructure from translational and global organizations. Public cloud offers several benefits such as high elasticity, scalability, and low-cost subscription-based price tier. It minimizes the cost as organizations pay for the resources they use, which cuts down extra costs on idle resources. Furthermore, as per the demand for the cloud, organizations have the freedom to simply scale up or down.
The private cloud segment is expected to hold a substantial CAGR in the coming years. Private Cloud offers various tools and services to manage cloud applications, including monitoring, data storage, and security with minimal expenditure. Organizations avail many benefits using the private cloud without compromising control security and customization. Moreover, it provides different advantages and freedom to customize hardware and software without compromising regulatory compliance and standards and great security and access control.
End-user Segment Analysis
Based on end-user, the finance cloud market is bifurcated into insurance and banking & financial services. The insurance segment is expected to hold a large market share during the forecast period, due to the rising demand for cloud services from the insurance sector. Organizations straighten their digital experience and operational processes with the help of the finance cloud.
The banking & financial services segment is anticipated to account for a substantial market share in the coming years, owing to increasing security concerns, reduced customer acquisition costs, and the need for disaster recovery. Financial institutions and banks are collaborating for cloud adoption with finance cloud providers. For instance,
Regional Analysis
On the basis of regions, the finance cloud market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market of North America is anticipated to represent a major market share during the forecast period, due to the increasing demand for wealth management services, growing adoption of finance cloud computing, and rapid digitization. Moreover, minimum capital expenditure (CapEx), enhanced agility and security, and reduced IT administration complexity are some key factors that are expected to fuel the market in the region.
Asia Pacific is expected to exhibit a rapid growth rate in the coming years, owing to the rapid growth of the banking and insurance sector in developing countries across the region. The increasing demand for customer management, increased digitalization, and growing client needs are expected to boost the market in the coming years.
The Government of India aims to digitalize the payment process and broaden financial inclusion through fintech projects including Jan Dhan Yojana, Adhar, and United Payments systems (UPI). This development propelling India's digital economy, which in turn expected to boost the market growth in the coming years. This development propelling India's digital economy, which in turn expected to boost the market growth in the coming years.
Segments
The global finance cloud market has been segmented on the basis of
Type
- Solution
- Governance, Risk & Compliances
- Security
- Financial Reporting & Analysis
- Financial Forecasting
- Service
- Managed Services
- Professional Services
Application
- Financial Forecasting
- Financial Reporting and Analysis
- Risk and Compliance
- Managed Services
- Revenue Management
- Wealth Management
- Account Management
- Customer Relationship Management
- Others
Deployment
End-user
- Insurance
- Banking & Financial Services
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- CloudSigma Holding AG
- Microsoft
- Alphabet Inc.
- IBM Corporation
- Red Hat
- SAP
- Hewlett Packard Enterprise Development LP
- SAP
- Kamatera
- VMware
- Salesforce
- Verizon
- ServiceNow
- Oracle
- Alibaba Cloud
- DigitalOcean Holdings. Inc.
- Cisco Systems
- Workday. Inc
- Adobe
- Logicworks.
Competitive Landscape
Key players competing in the finance cloud market share include CloudSigma Holding AG; Microsoft; Alphabet Inc.; IBM Corporation; Red Hat; Hewlett Packard Enterprise Development LP; SAP; Kamatera; VMware; Salesforce; Verizon; ServiceNow; Oracle; Alibaba Cloud; DigitalOcean Holdings. Inc.; Cisco Systems; Workday. Inc; Adobe; and Logicworks.
Some of the players are adopting several business strategies such as mergers, acquisitions, partnerships, collaborations, capacity expansion, and product launches to enhance their market shares due to the increasing competitiveness. For instance,
- In April 2021, SAP SE announced to enter into a partnership with Dediq GmbH to form a strategic partnership for financial services industries and is likely to expand SAP’s financial services portfolio jointly. This partnership is expected to provide the FSI unit with the funding, development expertise, and technology.
- In January 2022, Avaloq partnered with RBC Wealth Management. This partnership is anticipated to help RBC Wealth Management modernize the wealth management platform with cutting-edge solutions and move to a cloud-based SaaS model.
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