The global financial industry will spend US$6.57 billion on software and IT services for credit risk management in 2014, representing 17.9% of the total investments on all risk management software and services spending, says IDC Financial Insights.
While recent years of financial stress and uneven markets have delayed the growth in technology budgets, risk and compliance continues as a priority, with credit risk analytics and infrastructure investments growing at above average rates.
As such, in a new report entitled "IDC MarketScape: Worldwide Credit Risk Analytics Solution Vendor Assessment 2014", (Document #FI252132), IDC Financial Insights expects this figure to expand on a three-year compound average growth rate (CAGR) of 9% through to 2018.
The study found that specific credit risk investments are being directed at:
- Architecting enterprise analytics across credit product, portfolio, and regulatory capital functions;
- Creating more effective credit operations and underwriting methodologies;
- Improving credit capacity and debt collection capabilities;
- Supporting stress testing and capital reporting;
- Providing more granular client profitability assessment; and
- Enhancing decision making in areas such as pricing and capital allocation.
As discussed in the report, key decision imperatives for credit risk investments have moved beyond capital reporting and compliance. Today and in the future, institutions look to these solutions as front-to-back office analytics infrastructure, supporting retail, commercial, treasury, and financial performance needs of the institutions, and delivering efficiencies and bottom-line business benefits to pan-enterprise functions.
Market leaders in banking are increasingly investing in these technologies as a first step in core banking modernization, to better price products, assess credit exposures more proactively, and aligned bank relationships more closely with the credit appetite of customers.
According to Li-May Chew and Michael Versace, part of the Worldwide Risk Management Strategies team at IDC Financial Insights, "Credit risk is the largest, most elementary risk faced by the international financial industry. Leading financial institutions have made measurable headway in laying the foundation for a robust credit risk management system following lessons learned from the global financial crisis."
To assist these institutions in selecting the most appropriate credit risk analytics vendor, this document further evaluates nine specialty vendors offering products and services within this solutions market.
Data from this report indicates that the featured vendors demonstrate key positive commonalities including:
- Commitment in helping clients modernize risk infrastructures by placing analytic platforms and capabilities at the core of transformation initiatives;
- Commendable expertise and experience in credit analysis;
- Proactive posture in expanding partnership arrangements for customer acquisition;
- Receptiveness to making strategic acquisitions that further enhance their risk management capabilities; and
- Solidification of forays into the Big Data and cloud computing environment.
The IDC Financial Insights report identified SAS Institute and SAP as leaders in the Worldwide Credit Risk Analytics Solution market.
#Vendors featured in this report are: FICO, Fiserv, IBM Risk Analytics, Misys, Moody's Analytics, Oracle, SAP, SAS Institute, and SunGard.
For more information about the research or to purchase this data, please contact Sheryl Fuertez at +65-6829-7758 or sfuertez @idc.com. To set up an interview with Li-May Chew, contact Emily Chia at echia@idc.com.
About IDC MarketScapes
IDC MarketScape vendor analysis model is designed to provide an overview of the competitive fitness of IT, telecommunications, or industry-specific suppliers in a given market. The research methodology utilizes a rigorous scoring methodology based on both qualitative and quantitative criteria that results in a single graphical illustration of each vendor's position within a given market. IDC MarketScape provides a clear framework in which the product and service offerings, capabilities and strategies, and current and future market success factors of IT, telecommunications, or industry-specific vendors can be meaningfully compared. The framework also provides technology buyers with a transparent foundation to allow companies to independently compare the strengths and weaknesses of current and prospective vendors.
About IDC Financial Insights
IDC Financial Insights assists financial service businesses and IT leaders, as well as the suppliers who serve them, in making more effective technology decisions by providing accurate, timely, and insightful fact-based research and consulting services. Staffed by senior analysts with decades of industry experience, our global research analyzes and advises on business and technology issues facing the banking, insurance, and securities and investments industries. International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology market. IDC is a subsidiary of IDG, the world's leading technology, media, research, and events company. For more information, please visit www.idc.com/financial, email info@idc-fi.com, or call 508-620-5533. Visit the IDC Financial Insights Community at http://idc-community.com/....
Companies Covered:
Oracle Corporation, SAP AG, IBM, Misys Plc, Fiserv, Inc., SunGard Data Systems Inc., SAS Institute Inc., Moody's Corporation, FICO
Regions Covered:
Worldwide
Topics Covered:
Analytic applications, Big Data analytics and discovery, Financial resource management, Security management
Vertical Markets:
Capital markets, Financial, Financial performance strategies, Financial risk management, Insurance
While recent years of financial stress and uneven markets have delayed the growth in technology budgets, risk and compliance continues as a priority, with credit risk analytics and infrastructure investments growing at above average rates.
As such, in a new report entitled "IDC MarketScape: Worldwide Credit Risk Analytics Solution Vendor Assessment 2014", (Document #FI252132), IDC Financial Insights expects this figure to expand on a three-year compound average growth rate (CAGR) of 9% through to 2018.
The study found that specific credit risk investments are being directed at:
- Architecting enterprise analytics across credit product, portfolio, and regulatory capital functions;
- Creating more effective credit operations and underwriting methodologies;
- Improving credit capacity and debt collection capabilities;
- Supporting stress testing and capital reporting;
- Providing more granular client profitability assessment; and
- Enhancing decision making in areas such as pricing and capital allocation.
As discussed in the report, key decision imperatives for credit risk investments have moved beyond capital reporting and compliance. Today and in the future, institutions look to these solutions as front-to-back office analytics infrastructure, supporting retail, commercial, treasury, and financial performance needs of the institutions, and delivering efficiencies and bottom-line business benefits to pan-enterprise functions.
Market leaders in banking are increasingly investing in these technologies as a first step in core banking modernization, to better price products, assess credit exposures more proactively, and aligned bank relationships more closely with the credit appetite of customers.
According to Li-May Chew and Michael Versace, part of the Worldwide Risk Management Strategies team at IDC Financial Insights, "Credit risk is the largest, most elementary risk faced by the international financial industry. Leading financial institutions have made measurable headway in laying the foundation for a robust credit risk management system following lessons learned from the global financial crisis."
To assist these institutions in selecting the most appropriate credit risk analytics vendor, this document further evaluates nine specialty vendors offering products and services within this solutions market.
Data from this report indicates that the featured vendors demonstrate key positive commonalities including:
- Commitment in helping clients modernize risk infrastructures by placing analytic platforms and capabilities at the core of transformation initiatives;
- Commendable expertise and experience in credit analysis;
- Proactive posture in expanding partnership arrangements for customer acquisition;
- Receptiveness to making strategic acquisitions that further enhance their risk management capabilities; and
- Solidification of forays into the Big Data and cloud computing environment.
The IDC Financial Insights report identified SAS Institute and SAP as leaders in the Worldwide Credit Risk Analytics Solution market.
#Vendors featured in this report are: FICO, Fiserv, IBM Risk Analytics, Misys, Moody's Analytics, Oracle, SAP, SAS Institute, and SunGard.
For more information about the research or to purchase this data, please contact Sheryl Fuertez at +65-6829-7758 or sfuertez @idc.com. To set up an interview with Li-May Chew, contact Emily Chia at echia@idc.com.
About IDC MarketScapes
IDC MarketScape vendor analysis model is designed to provide an overview of the competitive fitness of IT, telecommunications, or industry-specific suppliers in a given market. The research methodology utilizes a rigorous scoring methodology based on both qualitative and quantitative criteria that results in a single graphical illustration of each vendor's position within a given market. IDC MarketScape provides a clear framework in which the product and service offerings, capabilities and strategies, and current and future market success factors of IT, telecommunications, or industry-specific vendors can be meaningfully compared. The framework also provides technology buyers with a transparent foundation to allow companies to independently compare the strengths and weaknesses of current and prospective vendors.
About IDC Financial Insights
IDC Financial Insights assists financial service businesses and IT leaders, as well as the suppliers who serve them, in making more effective technology decisions by providing accurate, timely, and insightful fact-based research and consulting services. Staffed by senior analysts with decades of industry experience, our global research analyzes and advises on business and technology issues facing the banking, insurance, and securities and investments industries. International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology market. IDC is a subsidiary of IDG, the world's leading technology, media, research, and events company. For more information, please visit www.idc.com/financial, email info@idc-fi.com, or call 508-620-5533. Visit the IDC Financial Insights Community at http://idc-community.com/....
Companies Covered:
Oracle Corporation, SAP AG, IBM, Misys Plc, Fiserv, Inc., SunGard Data Systems Inc., SAS Institute Inc., Moody's Corporation, FICO
Regions Covered:
Worldwide
Topics Covered:
Analytic applications, Big Data analytics and discovery, Financial resource management, Security management
Vertical Markets:
Capital markets, Financial, Financial performance strategies, Financial risk management, Insurance
