Global AI in Fintech Market Set for Significant Growth, Projected to Reach USD 58,701.4 Million by 2034 | FMI
The global Artificial Intelligence (AI) in fintech market is poised for exponential growth, with industry experts predicting a surge from USD 13,515.7 million in 2024 to USD 58,701.4 million by 2034. This remarkable expansion represents a Compound Annual Growth Rate (CAGR) of 15.9%, reflecting the increasing integration of AI technologies across the financial services sector.
Fintech, or financial technology, leverages modern innovations to enhance, streamline, and automate banking, investing, and other financial activities. As financial institutions embrace digital transformation, AI has become an essential tool in detecting and preventing fraud, particularly through digital banking platforms.
AI’s role in fintech extends far beyond fraud detection, encompassing a wide range of services such as mobile banking, digital loans, insurance solutions, credit scoring, purchasing, selling operations, and asset management. By analyzing user interactions and transaction histories, AI technology can assess a customer’s behavioral patterns, offering personalized services, improved security, and enhanced financial experiences.
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This anticipated growth in the AI in fintech market underscores the critical role that AI will continue to play in reshaping the financial services landscape, driving efficiency, and bolstering security.
Key Takeaways From the AI in Fintech Market:
- The global AI in fintech market reached USD 6,850.2 million in 2019, marking substantial growth.
- United States is heavily adopting AI-driven fintech solutions to tackle challenges like fraud detection, credit assessment, and personalized financial services.
- China’s tech-savvy population and strong government support for AI development are driving its digital economy growth.
- India is advancing in the AI fintech sector through a focus on digital innovation and supportive government policies.
- The software segment leads the market due to its role in automating financial processes and improving decision-making.
Competition Outlook
The Fintech business is highly competitive, and manufacturers are gradually focused on incorporating advanced AI solutions such as fraud detection systems, automated trading algorithms, and personalized financial services.
This business is expected to provide creative, secure, and efficient financial solutions, as suppliers continuously improve their AI capabilities to satisfy changing industry expectations and regulatory constraints. Collaborations between fintech companies and technology suppliers are accelerating growth and improving the sophistication of AI-powered financial services.
Key players in the AI in Fintech Industry
- AWS
- IBM
- Microsoft
- AWS
- Intel
- Salesforce
- NVIDIA
- Oracle
- Affirm Inc.
- Amelia US LLC
- Nuance Communications Inc.
Industry Update
- In March 2024, Microsoft and Wipro have formed a strategic alliance to introduce AI-driven cognitive assistants for the financial services sector. These tools, powered by generative AI, focus on market intelligence, process efficiency, and client engagement. The suite includes Wipro GenAI Investor Intelligence, Investor Onboarding, and Loan Origination, all integrated with Microsoft’s Azure OpenAI
- In December 2023, IBM partnered with TechPassport to facilitate collaboration between banks and fintechs focusing on easing onboarding, security, and compliance processes. This partnership aims to ignite innovation by overcoming challenges in cloud financial management and optimizing value and expenditure in hybrid and multi-cloud environments.
- In May 2024, Oracle announced a strategic collaboration with Accenture to accelerate the adoption of generative AI in finance organizations. This partnership powers Oracle Cloud Infrastructure (OCI) Generative AI to provide real-time data analysis and recommendations to finance teams, enabling CFOs to reinvent financial planning and analysis, optimize operations, and drive growth.
AI in Fintech Market Segmentation
By Solution:
In terms of solution, the industry is divided into Software and Services.
By Fintech Domains:
In terms of fintech domains, the industry is segregated into digital banking, insurtech, embedded finance, digital lending, digital payments, investments & wealth, crypto/blockchain.
By Application:
In terms of application, the industry is segregated into financial fraud intelligence, financial analytics & modelling, automated claims processing, chatbots/virtual assistants, robo advisory, financial risk assessment and other applications.
By End-user:
In terms of end user, the industry is segregated into banks, insurance providers, investments firms, financial technology providers, mobile payment companies, regtech vendors, government regulatory agencies, crypto exchanges and other end user.
By Region:
A regional analysis has been carried out in key countries of North America, Latin America, East Asia, South Asia & Pacific, Western Europe, Eastern Europe and Middle East and Africa (MEA).
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