According to the latest report by IMARC Group, titled “AI in Fintech Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027,” finds that the global AI in fintech market size reached US$ 9.4 Billion in 2021. Fintech, or financial technology, is the use of advanced technology with financial services to automate banking and financial services. Artificial intelligence (AI) in the finance industry helps examine the cash, credit, and investment accounts of the organization. It also oversees the overall financial health by keeping up with real-time changes and customizing advice based on incoming data. AI and machine learning (ML) greatly benefit the finance industry as they help to process a large amount of data and information about customers. Nowadays, AI solutions in fintech are increasingly gaining traction due to the associated advantages of minimized cost, increased efficiency, reduced error, and better customer experience. It can also identify personally identifiable information (PII) leaked on the dark web while undertaking necessary actions to secure the data.
We are regularly tracking the direct effect of COVID-19 on the market, along with the indirect influence of associated industries. These observations will be integrated into the report.
Global AI in Fintech Market Trends:
The market is primarily driven by rapid advancements in technology, which have improved the business processes of financial service providers. The growing internet penetration and availability of spatial data are also fueling the market growth. Besides this, there has been an increasing demand for process automation among financial organizations, which is facilitating the evolution of cognitive process automation, where AI systems can perform more complex processes. In addition to this, various credit card companies are implementing predictive analytics into their existing fraud detection workflows to reduce false positives, which is significantly influencing the demand for AI in fintech. Moreover, rapid digitization in the banking, financial services and insurance (BFSI) industry that helps in operating virtual assistance, debt collection, sentiment and predictive analysis, reporting, and customer behavior analysis represents another major growth-inducing factor. Furthermore, the rising utilization of smart contracts for financial processes and the improvements in IT infrastructure are positively impacting the market growth. Looking forward, the market is expected to grow at a CAGR of 26.1% during the forecast period (2022-2027).
- Based on the type, the market has been segmented into solutions and services.
- On the basis of the deployment model, the market has been classified into cloud-based and on-premises.
- The market has been categorized based on the application into virtual assistance (chatbots), credit scoring, quantitative and asset management, fraud detection, and others.
- Region-wise, the market has been divided into North America (the United States and Canada), Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others), Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others), Latin America (Brazil, Mexico, and others), and Middle East and Africa.
- The competitive landscape of the market has been examined, with some of the key players being Amazon Web Services Inc. (Amazon.com Inc), Google LLC (Alphabet Inc.), Inbenta Holdings Inc., Intel Corporation, International Business Machines Corporation, Microsoft Corporation, Salesforce.com Inc., Samsung Electronics Corporation Limited, TIBCO Software Inc., Trifacta Inc., and Verint Systems Inc.
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