APAC Master Data Management Market For Financial Services Estimates, And Forecast To 2028

APAC Master Data Management Industry for Financial Services Overview

The APAC master data management market for financial services size was valued at USD 1.21 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 13.4% from 2021 to 2028.

The increasing need for customer retention strategies and compliance are the major factors driving the market growth. The Master Data Management (MDM) solution provides enterprises with a view of all the users’ data to ensure that the users comply with government-imposed regulations such as Dodd-Frank, Basel II/III, FATCA, AML, HMDA, and OFAC. The solution also facilitates data linking for easy access. Furthermore, it provides detailed user information such as demographics, addresses, identifiers, name, and customer account relationships for applications supporting KYC, OFAC data, AML, and fraud analysis and for governing regulatory compliances.

When implemented in banking and financial organizations, master data management solutions can offer critical information to enable financial firms to comply with several regulations of different countries. In FY 2020, the COVID-19 pandemic impacted businesses, consumer behaviors, as well as economies and societies at large. During this crisis, data management companies and financial service industries are focused on keeping their assets online and safeguarding the security and privacy of customer data across networks.

Gather more insights about the market drivers, restrains and growth of the APAC Master Data Management Market for Financial Services

Master data management solutions assist in defining the end-to-end data management of banking and financial institutions. The master data management software and services play a vital role in every aspect of data management, from data collection to data reconciliation. The banking and financial services industry is an intensively data-driven industry. It deals with customer information; products, services, and purchase history; marketing strategies, and financial transactions sourced from several smartphone devices and applications. With digital transformation, banks and financial organizations are expected to adopt solutions such as master data management to address challenges such as data pervasiveness and rising data volumes. MDM enables the banking and financial services industry to make the best use of data for gaining competitive advantages, such as increasing business profitability, early fraud detection, eradicating compliance risks, reducing customer attrition, and promoting customer intelligence.

The APAC master data management market for financial services is anticipated to be driven by the growing need for meeting compliances accurately offers forecasts for faster decision making and a rise in data quality tools for data management across the banking and financial service industry. Moreover, the market growth is attributed to promptly growing economies, such as Australia, Japan, China, and Singapore. These countries have undertaken noteworthy adoption of master data management solutions and services to cater to the requirements of data quality and governance across the financial service industry in the region. Increased adoption of data regulatory practices and rapid economic development are anticipated to drive market growth in the region.

The increased popularity of master data management solutions can be attributed to their ability to collect and consolidate customer data, analyze customer data, and derive actionable customer insights from the data collected. MDM solutions help financial service firms to obtain and manage customer feedback and data through a centralized platform. Being a central repository of all customer data, a master data management solution addresses the vital objective of promoting margin and revenue. Master data management helps to categorize the needs of customers to better cater to them and support personalized services to drive new customer demands.

Moreover, master data management solutions can predict customer attrition or churn by helping financial institutes understand client activities that indicate the customer is considering transferring their funds somewhere else, and by correlating this customer data and determining the statistical significance of the activities. Some of the analyzed data pointing to attrition could be social media sentiment, customer complaints, cancellation of preauthorized payments, and significant withdrawals.

MDM solutions also reduce the complexities in understanding customer sentiments shared in comments and feedbacks by extracting valuable insights and themes from the collected data. The insights enable banking and financial service firms to understand their areas of improvement and turn challenges into opportunities to generate improved responses, further enriching their overall banking and financial service.

The BFSI segment accounted for the largest revenue share of around 31% in 2020 of the overall market. The BFSI sector uses MDM to increase customer profitability, cross-sell and up-sell products, customer audit trail, adapt to mergers & acquisitions, risk management, and regulatory compliance. The data generated in the BFSI sector is expected to grow exponentially in the coming years. Mergers and acquisitions also bring in new data sources containing huge data stores. Moreover, finance companies consume data from external data sources for credit scoring and marketing purposes. APAC is one of the highly populated regions with banking and financial services for every class/country/state population. Owing to the increasingly competitive and unpredictable ecosystem of the banking and financial services industry, it is highly imperious for these organizations to collect client/customer information. This information includes the financial requirements, savings, personal and professional details, and others. The data helps banking and financial service providers to create new products and increase up-sell opportunities. Additionally, it allows commercial bankers to manage the capital allocation and risks associated by meeting the compliance and regulatory requirements.

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Market Share Insights

  • March 2014: 13 Australian Privacy Principles (APPs) replaced the National Privacy Principles (NPPs). The APP guidelines outline the mandatory requirements of APPs and how the Office of the Australian Information Commissioner (OAIC) will interpret them.

Key Companies profiled:

Some of the prominent players in the APAC master data management market for financial services include:

  • GoldenSource
  • Eagle Investment Systems LLC
  • PolarLake
  • Asset Control International BV (Alve)

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