Global BFSI Crisis Management Market Grows at a Staggering CAGR of 18.30%

Introduction

An organization's goal is to use crisis management techniques to manage various business operations, such as lending, payments, international money transfers, personal finance, equity financing, and insurance. Crisis management strategies are more important than ever in the financial services industry to protect an organization's reputation and address threats to its financial stability, the welfare of its employees, and general public safety.

Market Dynamics

Increasing Awareness of Crisis Management Strategies in the BFSI Sector Drives the Global Market

Crisis management solutions are highly sought-after in the BFSI market because they assist financial institutions in identifying incidents and emergencies, reducing business risk, and mitigating risk. Major market players also focus on enhancing fraud detection and risk mitigation strategies through cutting-edge crisis management solutions. Furthermore, financial institutions and banks are increasingly implementing crisis management strategies for various reasons, including business operations control, fraud detection, and handling multiple crises in the sector. As a result, crisis management solutions have seen a greater uptake in the BFSI sector, which is assisting in the market's growth.

Improved Client Satisfaction Creates Tremendous Opportunities

FinTech is a relatively new sector rapidly growing due to its innovative solutions for banks and other financial institutions. The automated FinTech solution enhances the user experience while saving financial institutions time and effort and delivering faster service. In the upcoming years, improvements in the general customer experience will be anticipated to benefit the global market expansion.

Regional Analysis

North America is the most significant shareholder in the global BFSI crisis management market and is expected to grow at a CAGR of 16.7% during the forecast period. The adoption of the online mode business model and the rise in the trend of the work-from-home culture are credited with increasing business contingencies, which in turn led to the expansion of the BFSI crisis management market in North America. The main factors influencing the market growth are the rise in data theft incidents and the expansion of third-party risk management among BFSI sector companies. As businesses in the BFSI sector utilize technologies like artificial intelligence, machine learning, and advanced analytics, most banks and financial institutions in the United States have embraced crisis management practices.

Asia-Pacific is expected to grow at a CAGR of 20.5%, generating USD 16,686.87 million during the forecast period. The Asia-Pacific BFSI crisis management market has the highest growth potential as more financial institutions, banks, and insurance companies adopt crisis management software and services to boost bureaucratic competence, reduce compliance risk exposure, and improve business efficiency.

Europe is expected to grow significantly over the forecast period. The ongoing technological advancements in the banking sector and a rise in the adoption of digitalized business models among financial institutions are other factors driving the demand for crisis management solutions in this region. The primary drivers behind the adoption of crisis management solutions in European nations are reducing regulatory risks through simple methods and reducing the time needed for consumer onboarding. Businesses all over Europe, including those in the UK, Germany, and France, use crisis management tools because they are successful at facilitating transactions between counterparties and enhancing operational security. Additionally, banks and other regional financial institutions are looking for crisis management solutions, helping the market grow as demand for better and more secure financial services has increased.

Key Highlights

• The global BFSI crisis management market was valued at USD 11,236.21 million in 2021. It is expected to reach USD 50,989.71 million by 2030, growing at a CAGR of 18.3% during the forecast period (2022–2030).
• Based on components, the global BFSI crisis management market is bifurcated into solutions and services. The solution segment is the highest contributor to the market and is expected to grow at a CAGR of 17.6% during the forecast period.
• Based on enterprise size, the global BFSI crisis management market is bifurcated into large enterprises and small and medium enterprises (SMEs). The large enterprise segment owns the highest market share and is expected to grow at a CAGR of 17.8% during the forecast period.
• Based on the end-user, the global BFSI crisis management market is bifurcated into banks and insurance companies. The bank segment is the highest contributor to the market and is expected to grow at a CAGR of 16.6% during the forecast period.
• Based on the deployment model, the global BFSI crisis management market is bifurcated into on-premises and cloud. The on-premises segment owns the highest market share and is expected to grow at a CAGR of 14.6% during the forecast period.
• Based on application, the global BFSI crisis management market is bifurcated into disaster recovery and business continuity, risk and compliance management, crisis communication, and incident management and response. The incident management and response segment is the highest contributor to the market and is expected to grow at a CAGR of 16.7% during the forecast period.
• North America is the most significant shareholder in the global BFSI crisis management market and is expected to grow at a CAGR of 16.7% during the forecast period.

Competitive Players

Competitive Players

The global BFSI crisis management market’s key players are 4C Strategies, Cura Software Solutions, Everbridge, IBM, Konexus, MetricStream Inc., Logicgate, Inc., and Ncc Grousas Institute Inc.

Recent Developments

Market News

• In October 2022, the COP27 World Climate Summit - The Investment COP announced a partnership with Everbridge, Inc., the industry pioneer in critical event management (CEM) and national public warning software solutions, to present on the synergy between index-based insurance and Public Safety solutions as crucial climate adaptation measures. Everbridge is a pioneer in showcasing the novel advantages of combining public safety technology with insurance products to give businesses and governments a comprehensive strategy to address climate risk and resilience.

Segmentation

Global BFSI Crisis Management Market: Segmentation

By Components

• Solution
• Service

By Enterprise Size

• Large Enterprises
• Small and Medium Enterprises (SMEs)

By End-User

• Banks
• Insurance Companies

By Deployment Model

• On-Premises
• Cloud

By Applications

• Disaster Recovery and Business Continuity
• Risk and Compliance Management
• Crisis Communication
• Incident Management and Response

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA