BUSINESS SITUATION
One of the leading technology-focused research and advisory groups, serving clients in over 120 countries, needed to forecast Information and Communications Technology (ICT) spending supporting the consumer and business banking lines of financial institutions worldwide.
SGA STRATEGIC APPROACH
- Several factors were considered in the forecasting process, including economic, demographic, behavioral, technological, competitive, and government legislation, along with individual segment drivers that impact specific markets.
- Different models were designed for each segment, using a range of time series (e.g., extrapolation, weighted average, and logistic curves) and causal techniques (e.g., multiple regression).
- Model selection varies by segment, depending on the forecast scope, market mind map, and data availability, with a variety of techniques used for forecast.
- All estimates were benchmarked against leading market commentators and industry experts, with amendments made to the modeling parameters where applicable.
ENGAGEMENT
- The SGA team conducted exhaustive secondary research to determine the market size of IT spending in retail banking for the base year.
- The team also analyzed revenue data from 1,000+ banks to assess growth percentages in IT revenues.
BENEFITS & OUTCOME
Two key deliverables for the client were:
- A detailed working report focused on the Source and Business Function segments, providing market dynamics of the industry.
- Data visualization reports using Tableau, submitted to the client, offering global, regional, and country-level data, along with CAGR and market size numbers.
KEY TAKEAWAYS
SGA’s analysis provided insights into the current IT market size, and forecasted numbers for the coming years, including CAGRs, and helped identify potential market opportunities.
