BFSI Industry in North America - IT Market Assessment by InfinitiResearch

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									BFSI Industry in North America
         IT Market Assessment
                                                            BF SI Ind us tr y in Nor th Am er i ca – I T Mar ke t
                                                                                As s e s s m en t




                                          Table of Contents

1.0 BFSI Industry in North America .................................................... 2
   1.1 Market Size and Forecast ................................................................ 2
   1.2 Market Trends ................................................................................. 4
2.0 Growth Drivers & Restraints ........................................................ 5
   2.1 Growth Drivers ................................................................................ 5
   2.2 Growth Restraints ............................................................................ 6
3.0 IT Spending – BFSI Industry in North America .............................. 8
   3.1 IT Spending & Forecas t ................................................................... 8
   3.2 IT Sales Drivers ................................................................................ 9
4.0 Regulations Affecting IT Spending ........................................... 11
Other Reports in this Series ............................................................. 13



                                             List of Exhibits

Exhibit 1: Banking & Financial Services Industry in North America Market Size & Forecast
    2007-2013 (in $ trillion) .................................................................................. 2

Exhibit 2: Insurance Industry in North America Market Size & Forecast 2007-2013 (in $
    trillion) .......................................................................................................... 3

Exhibit 3: Banking & Financial Services - IT Spending & Forecast 2007-2013 ( in billion
    USD)............................................................................................................. 8




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                                             BF SI Ind us tr y in Nor th Am er i ca – I T Mar ke t
                                                                 As s e s s m en t




1.0 BFSI Industry in North America

1.1 Market Size and Forecast
The BFSI sector comprises the banking and insurance industries. Hence, the market size
of the BFSI sector has been categorized into: Banking & Insurance industry size.
According to TechNavio estimates, the size of North America banking assets is estimated
to be $14.5 trillion in 2007. The size of the insurance sector is estimated to be $1.22
trillion in 2007.

The North American BFSI sector is undergoing change in order to achieve economies of
scale, streamlining of processes and cut down of operational costs. The BFSI sector in
North America serves a diverse market, providing wholesale and retail financial services
to corporations, small and medium-sized enterprises (SMEs) and individuals.

The North American banking sector assets will reach $27 trillion by 2013 and will grow at
a rate of 11.0%.

Exhibit 1: Banking & Financial Services Industry in North America Market Size & Forecast
2007-2013 (in $ trillion)

30.0
                                                                                       27.2
                                                                         24.5
25.0
                                                            22.0
                                               19.9
20.0                               17.9
                      16.1
          14.5
15.0


10.0


 5.0


-
          2007        2008        2009         2010         2011         2012          2013


                                                                    Source: TechNavio Estimates




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                                             BF SI Ind us tr y in Nor th Am er i ca – I T Mar ke t
                                                                 As s e s s m en t



The North American Insurance sector is estimated to reach $1.6 trillion by 2013 at a
growth rate of about 4.4%. The insurance market will show considerably average growth
rate.

Exhibit 2: Insurance Industry in North America Market Size & Forecast 2007-2013 (in $
trillion)
  1.8
                                                                                      1.6
  1.6                                                                    1.5
                                                            1.5
                                               1.4
  1.4                              1.3
                       1.3
           1.2
  1.2

  1.0

  0.8

  0.6

  0.4

  0.2

 -
          2007        2008        2009        2010         2011         2012         2013



                                                                    Source: TechNavio Estimates




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                                           BF SI Ind us tr y in Nor th Am er i ca – I T Mar ke t
                                                               As s e s s m en t




1.2 Market Trends
   Cutting costs and Diversification of services high priority: The profit
     margins are getting squeezed in the North American BFSI sector; therefore
     companies in the North American BFSI sector are focusing on cutting costs and
     decrease their branches. In order to cut costs the banks in North America are
     diversifying into pensions, insurance, asset management and investment banking.

   Sophisticated Credit Risk Management Systems: Risk management is one of
     the key functionalities of the BFSI sector. In the current scenario, the North
     American B
								
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