Vendors battle for a slice of op risk ‘solutions’ spending
(Source: Global Risk Regulator – October 2006)
A few software vendors are pulling away from the pack as banks look for external solutions. Despite a wave of consolidation, the industry remains fragmented.
“The op risk software market is still very fragmented and you have a variety of firms in the running. There are also a number of niche players who specialise in a particular product or market but have not scaled-up,” says London-based Simon Turner, market analyst at Chartis Research, an independent risk technology research firm.
“At the same time you have a couple of firms emerging as global players in this market. We don’t believe that any one company has a market penetration of more than 5%, so you cannot say that anyone is dominant.”
The global marketplace for external operational risk software solutions is still relatively small, estimated to be worth $163 million in 2006, according to figures supplied by Chartis.
However the firm predicts compound growth in the market of 7.7%, bringing its total worth to close to $220 million by 2009. And steady growth will continue as new products and geographies, in particular Asia and Latin America, create fresh demand in the market.
