Banking, financial services, insurance (BFSI) Security is now a must for the growing world economy. Reports of Market Research Future (MRFR) suggests that the global market is expected to reach around USD 71 Bn during the forecasted period (2016-2022) growing at a CAGR of 14%. BFSI serves as the foundation for various financial exchanges that take place in diverse sectors and is now an integral part of national infrastructure systems. Hence, the need for the maximum security against possible online or offline theft.
Overview
Online banking platforms are an effective way to process banking transactions remotely. Web-based applications act as a medium for such transactions but also increase the risk of exposing user's data to hackers. Owing to this factor, the demand for BFSI security is expected to rise exponentially. Various banking and financial institutions are now using the cloud services, and in doing so, putting themselves at risk of being exposed. The risk of data theft has made the installation of BFSI security market imperative. Protecting information from the hackers is now the most significant concern and is the chief driving force behind implementation of BFSI security.
Growing away from the traditional system of financial transactions, BFSI has revolutionized customer experience. The rise in remote monitoring and banking solutions is further stimulating the market growth. Other factors such as analytics, biometrics, and ethical hacking have greater possibilities regarding generating revenues. Security and safety measures have given biometrics the much-needed impetus in opening up market possibilities.
Drivers and Restraints
With an increasing number of ATMs and online banking solutions, BFSI sector has become prone to cyber threats. Falling victim to such threats can hamper the credibility of institutions and create future complications. Hence, the need for specific solutions. Changing financial regulations, growth in mobile banking applications, and the rising number of bank accounts are also expected to boost the market growth.
Physical security threats in this sector have also increased. Several governments have now stepped in with various regulations and policies and insisting on the stringent implementation of adequate security protocols and compliances. These issues are driving the sector towards incorporation of a one-stop solution.
However, the initial investment required to set up the security infrastructure is one major challenge for the growth of this market.
Segmentation
The BFSI Security market has been segmented on the basis of type and vertical.
Based on type, there are two sub-categories - physical security and virtual security. Physical security includes access control, video surveillance, intrusion and fire detection, physical security information management (PSIM), system integration, and various other methods. Physical BFSI security is expected to hold the most significant share within the forecast period. Virtual security deals with encryption, firewall, IDS/IPS, web filtering, data loss protection among others.
Vertical-wise segmentation of BFSI security includes banking, insurance companies, and others. Insurance segment is expected to experience the fastest growth rate owing to tremendous transformation in deregulation, globalization and terror attacks.
Regional Analysis
Region-wise segmentation results in three prominent groups; North America, Europe, Asia Pacific, and Rest-of-the-World (RoW). North America leads the BFSI security market. The last two decades have seen North America getting riddled by various cyber-attacks and as a counter mechanism, they have launched extensive security measures. Presence of global players in the U.S. gives North America a competitive advantage. Europe holds the second position in the market closely followed by the Asia Pacific. The fast growth-rate have made countries, such as Japan, China, Singapore and the UAE easy targets for online hackers, resulting in more demand for advanced security systems and could propel revenue during the forecast period.
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