A surge in financial fraud, more people owning connected devices and a desire to predict cash flow could drive growth in predictive analytics in banking market to increase at a compound annual growth rate of 20.8% by 2026.
What that means is that while the market was estimated to be worth $1.2bn in 2019, it could be generating a value of $5.43bn by 2026, according to new research from Allied Market Research.
The researchers made the estimate based on the availability of billions of internet of things-based devices worldwide, an increase in fraudulent activities including money laundering, accounting fraud, and payment card fraud, and ability to predict incoming and outgoing flow of property payment and customers drive the growth of the global predictive analytics in banking market.
Yet, the researchers also noted that concerns about how the implementation and integration of predictive analytics in banks and financial institutions are holding back the growth of the market. On the other hand, surge in demand for developing economies and implementation of artificial intelligence (AI) in mobile banking apps create new opportunities in coming years.
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