Market Trends of Disclosure Management Industry
BFSI is Expected to Be the Fastest-growing End-user Industry
- The banking, financial services, and insurance (BFSI) vertical is expected to have the largest market share during the forecast period. Organizations in the BFSI industry are using disclosure management solutions to effectively and efficiently manage business disclosure processes. Digital transformation, coupled with an increased need for hyper-personalized products and services, is pushing many companies to rethink how they manage their disclosure process. Moreover, the distribution of required disclosures in complex regulatory environments can comprise more than 60% of customer communications.
- The need to minimize the risks and frauds that occur through human interventions is another major reason for the rising adoption of risk management solutions. Harmonizing global disclosure management with standardizing, centralizing, and automating organizations saves time and money and reduces the risk of human error that can lead to non-compliance. With global reporting requirements becoming more complex and stringent, organizations are reporting on and presenting data at an unprecedented level of granularity, which means more operational and process complexity and increased risk. This further increases the application of disclosure management in banking and finance institutions.
- Asia-Pacific has the fastest-growing BFSI industry owing to its various developing countries, such as countries in Southeast Asia. Major economies such as India and China are also boosting growth, with even small banks getting on with the ongoing digitalization trend. For instance, in August 2023, Karnataka Bank announced the digitalization of its processes, aligning with the organization’s plan to attract new customers while retaining the old ones. According to a study published in August 2023, roughly 250 global digital banks were redesigning the forthcoming days of fintech, and 20% of these digital transformative bodies were present in Asia-Pacific. Malaysia is also making noteworthy progress in this digital development trend.
- The 2024 Thales Digital Trust Index revealed that banking, healthcare, and government services are the most trusted sectors for sharing personal data. On the other hand, media and entertainment, social media, and logistics companies were at the bottom of the industry rankings. Additionally, over a quarter (26%) of customers left a brand in the previous 12 months due to privacy concerns.
- Organizations with purpose-built cloud-based and content-driven global disclosure management software tend to have strengthened regulatory compliance frameworks and governance. A Shared Services & Outsourcing Network report found that nearly six in ten shared services executives cite automation as a continuing priority. This suggests the increasing implementation of disclosure management in the market.
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North America is Expected to Hold a Significant Market Share
- The North American disclosure management market is expected to grow significantly, owing to technologically advanced countries like the United States and Canada. Companies are dealing with increasing complexity in the reporting process characterized by different file formats, causing the demand to rise. The quicker report preparation and financial statement disclosure, report comparison, tracking changes made by any user, and complete restoration of earlier versions provide greater control to the users, propelling demand in the market.
- The rising need to comply with industry regulations to sustain market competition is one of the key factors driving market demand in the region. This encourages companies to opt for the cloud deployment model and 24/7 availability of accessible information with low-cost maintenance services, fueling the growth of the market in large enterprises, owing to their increasing focus on improving the customer experience.
- In June 2023, Insight Software, the player in analytics, reporting, and performance management solutions, announced the integration of a Spreadsheet Server with Infor Financials and Supply Management (FSM). Spreadsheet Server now empowers Infor FSM users to do more with less by streamlining reporting from all data sources to close books more quickly, shrink planning cycles, and accelerate the creation of customized reports. It grants finance teams more control over Infor FSM reporting and ultimately empowers them to spend less time preparing the data and more time deriving new insights.
- There is a rising focus on sustainability reporting in the region, which mandates companies to disclose environmental effects along with conventional financial performance metrics such as income growth or profit margins to better notify stakeholders about their overall implementation across numerous proportions rather than just focusing solely on short-term gains at the cost of long-term viability. These are expected to drive the demand for disclosure management in the region.
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