BFSI Industry in North America - IT Market Assessment by InfinitiResearch

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The banking industry in the US has been hit hard by the sub-prime crisis, which has resulted in huge losses thereby bringing the world’s largest economy on the verge of recession.

In the current scenario, the North American BFSI sector is attempting to adopt sophisticated credit risks management systems to manage risks more efficiently.

Further, owing to the losses suffered by the US banks due to the mortgage investments, the government wants the regulations to be more stringent along with growing pressure on banks to adopt Basel II standards.

The report forecasts the IT spending of the BFSI Industry in North America over the period 2007-2010. It is meant for IT vendors and intends to help them identify selling opportunities in the BFSI Industry in North America. The report identifies key business issues being faced by the BFSI Industry in North America.

Further, the identified sales drivers can be used to penetrate these accounts or increase current share of the customer's wallet. Also, the report lists leading IT buyers and provides their brief company profile, along with their IT spending.

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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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