The AI in Fintech Market Size was valued at USD 11.89 Billion in 2023 and is expected to reach USD 41.5 Billion by 2031 and grow at a CAGR of 17.05 % over the forecast period 2024-2031.
The growing need for process automation in financial institutions is driving market expansion. Cognitive process automation is also enhancing AI capabilities to handle increasingly complex automation tasks. The widespread adoption of AI and machine learning in fintech has rapidly made them integral to financial services. This includes mobile banking, digital loans, insurance, credit scoring, transactions, and asset management. By analyzing customer interactions and transactions, AI technology can accurately predict typical behavior patterns. The market is being driven by factors such as increasing internet penetration and the availability of geographical data.
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KEY DRIVERS:
The Increasing need for process automation in financial institutions is driving the AI in Fintech market.
The growing number of significant market partnerships has resulted in a rise in financing for the growth and development of advanced and automated technology to combat fraudulent activities.
The rising integration of artificial intelligence and machine learning technologies in the Finance Sector.
The AI in the Fintech market is Driven by a significant increase in the demand for process automation within financial institutions. Organizations are actively Looking for ways to streamline their operations and Reduce the Dependance on manual tasks. AI technologies present viable solutions for automating a range of processes, from transaction management to risk evaluation. By using automation, Organizations can not only improve operational efficiency but also reduce errors and expedite decision-making procedures. This drive to optimize workflows and maintain competitiveness in a changing financial environment is a primary factor behind the adoption of AI in Fintech.
RESTRAINTS:
The Stringent regulations governing data privacy, consumer protection, and financial transactions pose challenges for Fintech firms implementing AI solutions.
The collection and utilization of vast amounts of sensitive financial data raise concerns regarding privacy and security breaches.
Integrating AI technologies with existing legacy systems and infrastructure can be complex and time-consuming,
OPPORTUNITIES:
AI enables Fintech companies to reach untapped markets and underserved demographics by offering innovative and tailored financial products and services.
Collaborating with traditional financial institutions, technology companies, and regulatory bodies presents opportunities for Fintech firms to leverage expertise.
AI facilitates the development of novel financial solutions such as robo-advisors, peer-to-peer lending platforms.
Challenges:
There is a shortage of skilled professionals with expertise in AI, machine learning, and data science.
AI-powered systems are vulnerable to cyber-attacks, malware, and hacking attempts.
The ongoing crisis between Russia and Ukraine has reverberated across various sectors, including the AI in FinTech. Economic sanctions and geopolitical strains have introduced disruptions into global financial markets, affecting businesses with interests in the Russian market. In response to political instability, there may be a shift towards cryptocurrencies and associated services as confidence in traditional currencies falters. the crisis has Increases concerns about a potential exodus of tech talent from Russia and Growing the threat of cyber-attacks, posing additional challenges for FinTech enterprises navigating this complex landscape.
The global fintech sector has been significantly impacted by the economic slowdown, leading to a decrease in venture capital funding for fintech startups. This decline, which began in the latter half of 2022, reflects broader economic uncertainties. Despite this setback, there has been a modest uptick in funding values in 2023, primarily attributed to a handful of substantial deals. The overall reduction in fintech funding could potentially affect the trajectory of the AI in fintech market, given its reliance on venture capital for advancement and innovation. During the economic slowdown presents challenges for the fintech and AI in fintech sectors, long-term growth prospects remain favorable, driven by ongoing digital transformations in financial services and the perpetual need for innovation in this dynamic industry.
By Component:
Solutions
Software Tools
Platforms
Service
Managed
Professional
By Deployment Mode:
Cloud
On-premises
By Application
Virtual Assistant (Chatbots)
Business Analytics and Reporting
Customer Behavioural Analytic
Others
The business analytics and reporting segment dominates the AI in Fintech market On the basis of application, with a revenue share More than 30%. Its dominance stems from the ability of sophisticated systems to handle large volumes of financial data swiftly and accurately, facilitating precise analysis and reporting. Moreover, these systems are adept at recognizing patterns and trends within financial markets, which in turn supports informed decision-making for businesses. Integrating analytics and reporting functionalities not only enhances operational efficiency and accuracy but also provides valuable strategic insights, establishing it as a fundamental component of Fintech operations.
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North America dominates the artificial intelligence (AI) governance market with a holding share of more than 38%, The considerable investment in research and development, and the presence of major businesses in the region are all factors contributing to the region's prosperity. one of the major drivers is growing digitization in increasing Digital payments in the region.
Because of the rapid acceptance of digital payment and Increasing prevalence of internet services in the area, the Asia Pacific region in the AI in fintech market is Expected to develop at the fastest CAGR during the forecast period. The government measures that assist AI growth in the fintech business give sufficient opportunities. the application of AI in the banking sector in the Asia Pacific region dominates the market.
REGIONAL COVERAGE:
North America
US
Canada
Mexico
Europe
Eastern Europe
Poland
Romania
Hungary
Turkey
Rest of Eastern Europe
Western Europe
Germany
France
UK
Italy
Spain
Netherlands
Switzerland
Austria
Rest of Western Europe
Asia Pacific
China
India
Japan
South Korea
Vietnam
Singapore
Australia
Rest of Asia Pacific
Middle East & Africa
Middle East
UAE
Egypt
Saudi Arabia
Qatar
Rest of the Middle East
Africa
Nigeria
South Africa
Rest of Africa
Latin America
Brazil
Argentina
Colombia
Rest of Latin America
The major players in AI in Fintech is Microsoft (Washington, US), Google (California, US), Salesforce.com (California, US), IBM (New York, US), Intel (California, US), Amazon Web Services (Washington, US), Inbenta Technologies (California, US), IPsoft (New York, US), Nuance Communications (Massachusetts, US), and ComplyAdvantage.com (New York, US) & Other Players
In April 2022, Gupshup, a leading conversational messaging platform, made headlines with the acquisition of Active.Ai, a private finance firm known for its expertise in artificial intelligence. This strategic move significantly enhances Gupshup's Customer Experience (CX) solutions for clients in the Banking, Financial Services, and Insurance (BFSI) sector.
In May 2020, Sentifi AG announced the launch of an enhanced alternative data-based analytics platform designed to identify investment opportunities and mitigate risks. This new analytics solution from Sentifi includes the detection of sector and industry outliers, ESG events that could impact asset valuation, and real-time trending investment themes. Investors now can identify outliers within their portfolios, providing them with valuable insights for making informed decisions.
| Report Attributes | Details |
| Market Size in 2023 | US$ 13.23 Bn |
| Market Size by 2031 | US$ 222.49 Bn |
| CAGR | CAGR of 42.3% From 2024 to 2031 |
| Base Year | 2023 |
| Forecast Period | 2024-2031 |
| Historical Data | 2020-2022 |
| Report Scope & Coverage | Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook |
| Key Segments | • By Component (Solutions, Services) • By Deployment Mode (Cloud, On-premises) • By Application (Virtual Assistant (Chatbots), Business Analytics and Reporting, Customer Behavioral Analytic, Others) |
| Regional Analysis/Coverage | North America (US, Canada, Mexico), Europe (Eastern Europe [Poland, Romania, Hungary, Turkey, Rest of Eastern Europe] Western Europe] Germany, France, UK, Italy, Spain, Netherlands, Switzerland, Austria, Rest of Western Europe]), Asia Pacific (China, India, Japan, South Korea, Vietnam, Singapore, Australia, Rest of Asia Pacific), Middle East & Africa (Middle East [UAE, Egypt, Saudi Arabia, Qatar, Rest of Middle East], Africa [Nigeria, South Africa, Rest of Africa], Latin America (Brazil, Argentina, Colombia, Rest of Latin America) |
| Company Profiles | Microsoft, Google, Salesforce.com, IBM, Intel , Amazon Web Services, Inbenta Technologies, IPsoft, Nuance Communications, and ComplyAdvantage.com |
| Key Drivers | • The rising integration of artificial intelligence and machine learning technologies will assist the market even more. |
| Market Opportunities | • The growing requirement to protect businesses' networks from unwanted and unprecedented attacks, as well as increased utilization of services due to smooth scalability, will drive the market's future growth. |
Ans. The Compound Annual Growth rate for the AI in Fintech Market over the forecast period is 17.05%.
Ans. The projected market size for the AI in Fintech Market is USD 41.5 billion by 2031
Ans: North America region dominated the AI in Fintech Market.
Ans: The key players of AI in the Fintech Market are Microsoft, Google, Salesforce.com, IBM, Intel, Amazon Web Services, Inbenta Technologies, IPsoft, Nuance Communications, and ComplyAdvantage.com.
Ans: The AI in Fintech Market is segmented into 3 types: By Component, By Deployment Mode, and By Application.
TABLE OF CONTENTS
1. Introduction
1.1 Market Definition
1.2 Scope
1.3 Research Assumptions
2. Industry Flowchart
3. Research Methodology
4. Market Dynamics
4.1 Drivers
4.2 Restraints
4.3 Opportunities
4.4 Challenges
5. Impact Analysis
5.1 Impact of Russia-Ukraine Crisis
5.2 Impact of Economic Slowdown on Major Countries
5.2.1 Introduction
5.2.2 United States
5.2.3 Canada
5.2.4 Germany
5.2.5 France
5.2.6 UK
5.2.7 China
5.2.8 Japan
5.2.9 South Korea
5.2.10 India
6. Value Chain Analysis
7. Porter’s 5 Forces Model
8. Pest Analysis
9. AI in Fintech Market Segmentation, By Component
9.1 Introduction
9.2 Trend Analysis
9.3 Solutions
9.3.1 Software Tools
9.3.2 Platforms
9.4 Service
9.4.1 Managed
9.4.2 Professional
10. AI in Fintech Market Segmentation, By Deployment Mode
10.1 Introduction
10.2 Trend Analysis
10.3 Cloud
10.4 On-premises
11. AI in Fintech Market Segmentation, By Application
11.1 Introduction
11.2 Trend Analysis
11.3 Virtual Assistant (Chatbots)
11.4 Business Analytics and Reporting
11.5 Customer Behavioural Analytic
11.6 Others
12. Regional Analysis
12.1 Introduction
12.2 North America
12.2.1 USA
12.2.2 Canada
12.2.3 Mexico
12.3 Europe
12.3.1 Eastern Europe
12.3.1.1 Poland
12.3.1.2 Romania
12.3.1.3 Hungary
12.3.1.4 Turkey
12.3.1.5 Rest of Eastern Europe
12.3.2 Western Europe
12.3.2.1 Germany
12.3.2.2 France
12.3.2.3 UK
12.3.2.4 Italy
12.3.2.5 Spain
12.3.2.6 Netherlands
12.3.2.7 Switzerland
12.3.2.8 Austria
12.3.2.9 Rest of Western Europe
12.4 Asia-Pacific
12.4.1 China
12.4.2 India
12.4.3 Japan
12.4.4 South Korea
12.4.5 Vietnam
12.4.6 Singapore
12.4.7 Australia
12.4.8 Rest of Asia Pacific
12.5 The Middle East & Africa
12.5.1 Middle East
12.5.1.1 UAE
12.5.1.2 Egypt
12.5.1.3 Saudi Arabia
12.5.1.4 Qatar
12.5.1.5 Rest of the Middle East
11.5.2 Africa
12.5.2.1 Nigeria
12.5.2.2 South Africa
12.5.2.3 Rest of Africa
12.6 Latin America
12.6.1 Brazil
12.6.2 Argentina
12.6.3 Colombia
12.6.4 Rest of Latin America
13. Company Profiles
13.1 Microsoft.
13.1.1 Company Overview
13.1.2 Financial
13.1.3 Products/ Services Offered
13.1.4 SWOT Analysis
13.1.5 The SNS View
13.2 . Google.
13.2.1 Company Overview
13.2.2 Financial
13.2.3 Products/ Services Offered
13.2.4 SWOT Analysis
13.2.5 The SNS View
13.3 Salesforce.com
13.3.1 Company Overview
13.3.2 Financial
13.3.3 Products/ Services Offered
13.3.4 SWOT Analysis
13.3.5 The SNS View
13.4 IBM.
13.4.1 Company Overview
13.4.2 Financial
13.4.3 Products/ Services Offered
13.4.4 SWOT Analysis
13.4.5 The SNS View
13.5 Intel.
13.5.1 Company Overview
13.5.2 Financial
13.5.3 Products/ Services Offered
13.5.4 SWOT Analysis
13.5.5 The SNS View
13.6 Amazon Web Services.
13.6.1 Company Overview
13.6.2 Financial
13.6.3 Products/ Services Offered
13.6.4 SWOT Analysis
13.6.5 The SNS View
13.7 Inbenta Technologies
13.7.1 Company Overview
13.7.2 Financial
13.7.3 Products/ Services Offered
13.7.4 SWOT Analysis
13.7.5 The SNS View
13.8 IPsoft
13.8.1 Company Overview
13.8.2 Financial
13.8.3 Products/ Services Offered
13.8.4 SWOT Analysis
13.8.5 The SNS View
13.9 Nuance Communications
13.9.1 Company Overview
13.9.2 Financial
13.9.3 Products/ Services Offered
13.9.4 SWOT Analysis
13.9.5 The SNS View
13.10 ComplyAdvantage.com.
13.10.1 Company Overview
13.10.2 Financial
13.10.3 Products/ Services Offered
13.10.4 SWOT Analysis
13.10.5 The SNS View
14. Competitive Landscape
14.1 Competitive Benchmarking
14.2 Market Share Analysis
14.3 Recent Developments
14.3.1 Industry News
14.3.2 Company News
14.3.3 Mergers & Acquisitions
15. Use Case and Best Practices
16. Conclusion
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