19 August 2017
Find out more

Credit risk technology market to grow to $8bn by 2010

16 June 2006  |  10572 views  |  0 cash

Bank spending on credit risk technology is set grow at a compound annual growth rate of seven per cent to hit $7.96 billion by 2010, according to a study by Chartis Research.

The credit risk technology market will be fuelled by the growth in credit risk derivatives and by Basel II, says the report.

Chartis says the pure credit risk software market - estimated to be $1.2bn in 2006 - will continue to grow at a healthy 11% compound annual rate to reach $1.8bn by 2010. The company ranks Algorithmics, Fermat, Reveleus, SAS and SunGard as the leaders in this space.

Helen Townsley, director of research at Chartis, says: "The growth in the credit risk technology market is fuelled by Basel II, the growth in credit risk derivatives and the increasing use of economic capital for managing financial performance."

Townsley says there will also be increased demand for credit risk technology from the emerging markets such as Asia Pacific, Middle East and Eastern Europe.

Expenditure will come in waves as focus shifts from regulatory compliance to value-adding performance management, says Chartis, and the 'beyond-Basel II spend' will be driven by the growing need for risk-based performance management systems.

According to the report, Basel II is also acting as a catalyst for moving financial institutions toward an integrated enterprise risk management system. As there are significant overlaps between credit and market risk management, operational risk management, financial management and IAS/IFRS initiatives, many firms are opting to invest in systems and processes for ERM.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Trading errors soar in credit derivatives market

Trading errors soar in credit derivatives market

31 May 2006  |  10583 views  |  0 comments
Operational risk management market to hit $1.38bn by 2010

Operational risk management market to hit $1.38bn by 2010

16 May 2006  |  10644 views  |  0 comments
KBC deploys Algorithmics for portfolio credit risk management

KBC deploys Algorithmics for portfolio credit risk management

16 May 2006  |  6743 views  |  0 comments
Wachovia deploys SunGard's Adaptiv Credit Risk

Wachovia deploys SunGard's Adaptiv Credit Risk

03 May 2006  |  5669 views  |  0 comments
Dealers pledge to create electronic credit derivatives market

Dealers pledge to create electronic credit derivatives market

14 March 2006  |  7302 views  |  0 comments
Credit derivatives dealers meet Fed targets

Credit derivatives dealers meet Fed targets

17 February 2006  |  11535 views  |  0 comments
Credit derivatives dealers boost IT spending to cut backlogs

Credit derivatives dealers boost IT spending to cut backlogs

13 January 2006  |  9396 views  |  0 comments
Algorithmics selected as data partner for credit risk consortium

Algorithmics selected as data partner for credit risk consortium

03 October 2005  |  5582 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.comvisit www.dorsum.euvisit www.worldpaymentsreport.com

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
8813 views comments | 23 tweets | 23 linkedin
Norwegian banks and startups form fintech clusterNorwegian banks and startups form fintech...
7753 views comments | 19 tweets | 23 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
7046 views comments | 10 tweets | 7 linkedin
hands typing furiouslyWhy Blockchain Might Not Be The Future For...
6389 views 1 | 5 tweets | 3 linkedin
Apple sidelined as Beijing transit system launches payments appApple sidelined as Beijing transit system...
6246 views comments | 11 tweets | 9 linkedin

Featured job

Competitive base and bonus, plus benefits
London, UK

Find your next job