AI in Fintech Market: Current Analysis and Forecast (2022-2028)
$3999 – $6999
Emphasis on Type (Service and Solution); Development (On-Premises and cloud); Application (Chatbots, Customer Behavioral Analytics, Business Analytics and Reporting, and others); and Region/Country
Global AI in Fintech Market is expected to grow at a significant rate of around 30% during the forecast period and is expected to account for USD 45 billion by 2028. Artificial Intelligence (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. 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.
IBM, Narrative Science, Amazon Web Services Inc., Microsoft, HCL Technologies, HP Enterprise Development LP, Intel Corporation, SAP SE, Salesforce Inc., and CISCO System are some of the key players in the market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.
Insights Presented in the Report
“Amongst type, solution category to witness higher CAGR during the forecast period”
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 own temenos banking cloud. However, the service segment also witnesses a significant change in growth over the period of time owing to the growing demand for AI-enabled services in the market such as credit assessment, and fraud detection among many others.
“Amongst application, the chatbot segment to hold a significant share in the market in 2020”
Based on application, the AI in fintech market has been classified into chatbots, customer behavioral analytics, business analytics & reporting, and others. The chatbots segment witnesses significant market growth in the year 2021 and are expected to remain the same during the forecast period owing to the ability to resolve the queries in a fraction of the time and the availability of the on-demand feature. The chatbot eliminates the requirement of longer queues and reduces human effort as well as provides the liberty to the client to get their work done from anywhere in the world. The chatbots use automated scripts to resolve the queries on their own. In addition, chatbots provide an easy communication channel between users and banks. For instance, in the year 2020, one million new clients have been added by the Bank of America after introducing their own chatbots.
“North America to hold a significant share in the market”
In 2020, North America held a significant share of the global AI in 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 the lawmaker has increased the attention for innovative products among individuals, banking body, and new payment provider institution to provide the innovative transaction platform 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 the USD 300 million in series C funding.
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 portfolio, 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.
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|2.1.||Research Process of the AI in Fintech Market|
|2.2.||Research Methodology of the AI in Fintech Market|
|5||IMPACT OF COVID-19 ON THE AI IN FINTECH MARKET|
|6||AI IN FINTECH MARKET REVENUE (USD BN), 2020-2028F|
|9.2.||Customer Behavioral Analytics|
|9.3.||Business Analytics and Reporting|
|10.1.3.||Rest of North America|
|10.2.6.||Rest of Europe|
|10.3.4.||Rest of Asia-Pacific|
|10.4.||Rest of the World|
|12||AI IN FINTECH MARKET OPPORTUNITIES|
|13||AI IN FINTECH MARKET TRENDS|
|14.1.||Demand Side Analysis|
|14.2.||Supply Side Analysis|
|15||VALUE CHAIN ANALYSIS|
|16.1.1.||Porters Fiver Forces Analysis|
|17.3.||Amazon Web Services Inc.|
|17.6.||HP Enterprise Development LP|
Research Methodology for the AI in Fintech Market Analysis (2022-2028)
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, to validate these insights, numerous findings and assumptions were taken into consideration. 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 pertains to. Detailed methodology is explained below:
Analysis of Historical Market Size
Step 1: In-Depth Study of Secondary Sources:
Detail 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 the AI in fintech market, 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 as type, deployment, and application. 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 various type, deployment, and applications of AI in fintech. A thorough analysis was conducted for 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 3 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 2028 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 the AI in fintech market 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 market 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
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 market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of type, deployment, and application in the global AI in fintech market.
The main objective of the Global AI in Fintech Market Study
The current & future market trends of the global AI in fintech market 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, and application.
- Define and analysis of 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 region.
- 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