AI in Fintech Market: Current Analysis and Forecast (2024-2032)

Report Description

AI In Fintech Market Size & Forecast

The AI In Fintech market was valued at approximately USD 11.5 Billion in 2023 and is expected to grow at a robust CAGR of around 15.5% during the forecast period (2024-2032). The growth of AI in the fintech market is driven by the increasing demand for automation, personalized financial services, and enhanced fraud detection capabilities.

AI In Fintech Market Analysis

AI in the fintech market is part of the data collection, analysis of the data, facilitating and securing transactions, providing customer-centric modules, and streamlining the process. Also, it provides better analytics, stronger security, virtual assistance, chatbot, and insight. Artificial intelligence in the fintech market consists of the sale of artificial intelligence software by different entities including organizations, partnership firms, and sole traders. AI in fintech allows fintech organizations to predict customer behavior by collecting their behavioral data. In recent times, AI in the fintech organization has witnessed a significant demand for AI technology in the fintech institution owing to the lower time consumption for the query and easier processing for monetary uses. Moreover, the covid pandemic has changed the behavioral structure of both institutional organizations & customers and allows the organization to implement faster as well as more convenient processes and propel the incorporation of AI in the fintech sector.

AI In Fintech Market Trends

This section discusses the key market trends influencing the AI In Fintech segments as identified by our research experts.

Solution Type Transforming Industry

Based on type, the market is segmented into service and solution. The solution segment witnesses a significant CAGR during the forecast period and is expected to remain the same during the forecast period owing to the adoption of AI and ML in the field of banking and financial institution services to manage big data analytics and to generate significant insight from the collected data. The companies in the market are focusing on innovative and lucrative products & solutions for the user to increase the adoption of AI-enabled technology among the users. For instance, in January 2022, Temenos organization which is the provider of enterprise software solutions for financial institutions and banks announced the first AI-powered buy now pay later solution on its temenos banking cloud. However, the service segment also witnesses a significant change in growth over the period owing to the growing demand for AI-enabled services in the market such as credit assessment, and fraud detection among many others.

North America to hold a significant share in the market

In 2023, North America held a significant share of the global AI in the fintech market. This is mainly due to the increasing research & development expenditure coupled with the technological advancement in AI, ML, and big data analytics. Also, the increasing number of startups and the growing number of enterprises in the region are supporting AI in the fintech market for instance, according to a leading firm, Canada has approximately 700 fintech organizations with 18 found in the year 2020. Moreover, the support from lawmakers has increased the attention for innovative products among individuals, banking bodies, and new payment provider institutions to provide innovative transaction platforms and is expected to support the growth of AI in the fintech market. Furthermore, the increasing investment by the individual and institutional bodies propel the market in the coming time. For instance, in March 2021, HighRadius, a startup for AI-based products for fintech received USD 300 million in series C funding.

AI In Fintech Industry Overview

AI In Fintech is competitive, with several global and international market players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions. Some of the major players operating in the market are IBM, Google, Amazon Web Services Inc., Microsoft, HCL Technologies, HP Enterprise Development LP, Intel Corporation, SAP SE, Salesforce Inc., CISCO System. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.

AI In Fintech Market News

• For instance, in 2024, Commercial Bank International (CBI), the Dubai-based corporate and retail bank, announced its investment in zypl.ai, a FinTech startup pioneering the application of generative AI in lending.

AI In Fintech Market Report Coverage

Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
• The report presents a quick review of overall industry performance at one glance.
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
• The study comprehensively covers the market across different segments.
• Deep dive regional level analysis of the industry.

Customization Options:

The Global AI In Fintech can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs; hence, feel free to connect with us to get a report that completely suits your requirements.

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Research Methodology

Research Methodology for the AI In Fintech Market Analysis (2024-2032)

Analyzing the historical market, estimating the current market, and forecasting the future market of the global AI In Fintech market were the three major steps undertaken to create and analyze the adoption of AI In Fintech in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, numerous findings and assumptions were taken into consideration to validate these insights. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global AI In Fintech market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

A detailed secondary study was conducted to obtain the historical market size of the AI In Fintech market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of AI In Fintech, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report, such as type, deployment, application, and region. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the AI In Fintech market. Further, we conducted factor analysis using dependent and independent variables such as type, deployment, application, and AI In Fintech regions. A thorough analysis was conducted of demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the AI In Fintech market sector across the globe.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above three steps, we arrived at the current market size, key players in the global AI In Fintech market, and market shares of the segments. All the required percentage shares split and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2032 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of revenue (USD) and the adoption rate of AI In Fintech across the major markets domestically
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the global AI In Fintech in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs), including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global AI In Fintech. Data was split into several segments and sub-segments after studying various parameters and trends in the type, deployment, application, and regions of the global AI In Fintech market.

The main objective of the Global AI In Fintech Market Study

The current & future market trends of global AI In Fintech were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of the AI In Fintech market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments.
• Segments in the study include areas of type, deployment, application, and regions.
• Define and analyze the regulatory framework for the AI In Fintech
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
• Analyze the current and forecast market size of the AI In Fintech market for the major regions.
• Major countries of regions studied in the report include Asia Pacific, Europe, North America, and the Rest of the World
• Company profiles of the AI In Fintech market and the growth strategies adopted by the market players to sustain in the fast-growing market.
• Deep dive regional level analysis of the industry

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