The global AI in fintech market is estimated at US$10.1 billion (€9.69 billion) in 2021 and is projected to procure US$11.76 billion (€11.28 billion) by 2022 according to a report published by ESOMAR-certified Future Market Insights.
The market is anticipated to garner US$54 billion (€51.79 billion) by 2032 while recording a CAGR of 16.5% during the forecast period from 2022 to 2032. Expansion of the market can be attributed to the increasing emphasis on customer safety against cyber and banking frauds across various developing countries.
From 2017 to 2021, the market flourished at a 16% CAGR. Growing application in the business analytics and reporting segment is another salient factor augmenting the industry growth in the assessment period. The managed service is likely to grow quickly owing to its help in administering AI-enabled apps in fintech. Fintech start-ups are using AI to provide professional services expected to drive the development of the segment.
On the contrary, owing to the rising cases of leakage of private information and cloning of debit cards is expected to be the major factor hindering the market expansion. Moreover, the proper integration and analysis of a huge amount of data makes the process even more complex, which is another factor impeding the industry expansion in the forecast period.
Key takeaways from the market study
- AI in fintech for business analytics and reporting captured a 32% market share, documenting a CAGR of 16% throughout the forecast period
- On-premise segment to expand at a CAGR of 17% during the forecast period
- North America is expected to secure US$35 billion (€33.57 billion) by 2032, while expanding at a CAGR of 16.5%
- Asia Pacific to record a CAGR of 16.5% during the forecast period
- Global market for AI in fintech to surge 4.6x from 2022 to 2032
“The global AI in Fintech market is expected to show a remarkable growth in the forecast period owing to the increasing emphasis on customer’s account safety against cyber and banking frauds,” says Aditi Basu, marketing head at Future Market Insights.
Key players in the global AI in the Fintech market include Microsoft, Google LLC, Salesforce, Inc., International Business Machines Corp., Amelia U.S. LLC, Nuance Communications, Inc., ComplyAdvantage.com, Narrative Science, Affirm, Inc., Upstart Network, Inc., Instructure, Inc., Intel, Inbenta Technologies, Amazon Web Services, Oracle, among others.
Some of the recent key developments among the players are:
- In October 2021, Tech giant Microsoft Wednesday launched a new program Microsoft AI Innovation for nurturing and scaling startups that are leveraging Artificial Intelligence (AI).
- In April 2022, Conversational engagement platform Gupshup acquired Active. Ai, a conversational AI startup used by banks and fintech firms in all-cash deals.
- In May 2022, Salesforce has agreed to buy Troops.ai, which provides a revenue communications solution that works with sales velocity, forecasting, visibility, and collaboration. Troops have been designing tools for delivering real-time insights from various systems of record, like Salesforce, to engagement places Like Slack.
More valuable insights available
Future Market Insights, in its new offering, presents an unbiased analysis of the global AI in the Fintech market, presenting historical market data (2017-2021) and forecast statistics for the period of 2022-2032.
The study reveals essential insights based on component (solutions, services), deployment (cloud and on-premise and, application (virtual assistant, business analytics and reporting, customer behavioural analytics, fraud detection, quantitative and asset management and others) across five major regions (North America, Latin America, Europe, Asia Pacific, and Middle East & Africa).
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