How Has the Generative Artificial Intelligence In Fintech Market Evolved Historically and What is its Current Size?
The generative artificial intelligence in fintech market has seen considerable growth due to a variety of factors.
• The market size of generative artificial intelligence in fintech has seen substantial growth in recent times. Predictions suggest an increase from $1.61 $ billion in 2024 to $2.17 $ billion in 2025, showing a compound annual growth rate (CAGR) of 35.3%.
Factors such as the surge in financial data availability, a need for automation in financial services, an increase in digital transactions, regulatory backing for fintech innovation, a demand for better risk management, and the growing application of AI in customer service have all contributed to its historic growth.
What Does Future Hold for The Generative Artificial Intelligence In Fintech Market By 2029?
The generative artificial intelligence in fintech market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for generative artificial intelligence in fintech is anticipated to experience a significant surge in the coming years, with expectations to reach $7.23 billion in 2029, representing a compound annual growth rate (CAGR) of 35.1%.
The predicted growth during this period can be credited to the rising emphasis on tailored financial services, an increase in AI utilization for fraud detection, a need for effective compliance solutions, an enlargement in AI-driven asset management tools, a growing trend in AI-based predictive analytics, a focus on instant decision-making, and an expansion in digital and online banking services. Critical trends for the forecasted period include the merging of AI with blockchain technology, the creation of sophisticated AI-operated trading algorithms, the expansion of AI-enabled personal finance management tools, inventive AI applications for credit scoring and lending, alongside advancements in generative AI intended for financial forecasting and planning.
What Are The Primary Growth Drivers In The Generative Artificial Intelligence In Fintech Market?
The growth of generative artificial intelligence in the fintech market is anticipated to be fuelled by the growing trend towards digital banking. Digital banking employs digital technology to provide and oversee banking services and transactions through online platforms and mobile apps. The popularity of digital banking is fuelled by its convenience, smartphone usage, advancements in financial technology, and the demand for increased security and efficiency in the management of financial transactions. Generative artificial intelligence enriches digital banking by automating intricate tasks, customizing customer communications, and refining decision-making procedures, thus allowing financial institutions to enhance their operations, monitor risks, and provide more effective and personalized banking experiences. For example, in April 2024, UK Finance Limited, a trade association for the banking and financial services industry based in the UK, revealed that digital-only bank accounts were witnessing noteworthy expansion, surging from 24% in 2023 to 36% in 2024. Hence, the escalating trend of digital banking promotes the growth of generative artificial intelligence within the fintech market.
What Is The Segmentation Of The Global Generative Artificial Intelligence In Fintech Market?
The generative artificial intelligence in fintechmarket covered in this report is segmented –
1) By Component: Service, Software
2) By Deployment: On-Premises, Cloud
3) By Application: Compliance And Fraud Detection, Personal Assistants, Asset Management, Predictive Analysis, Insurance, Business Analytics And Reporting, Customer Behavioral Analytics, Other Applications
4) By End-Use: Retail Banking, Investment Banking, Stock Trading Firms, Hedge Funds, Other End-Uses
Subsegments:
1) By Service: Consulting Services For AI Integration, Implementation And Deployment Services, Technical Support And Maintenance, Training And Education Services, Data Management And Analytics Services, Custom Development Services
2) By Software: Fraud Detection And Prevention Solutions, Risk Assessment And Management Tools, Algorithmic Trading Platforms, Personalized Financial Advisory Software, Automated Compliance And Reporting Tools, Customer Relationship Management (CRM) Systems.
Pre-Book The Generative Artificial Intelligence In Fintech Global Market Report 2025 Report For Swift Delivery And Comprehensive Insights:
How Are Emerging Trends Reshaping The Dynamics Of The Generative Artificial Intelligence In Fintech Market?
Leading firms in the generative AI in fintech sector are focusing on the creation of advanced AI tools, including generative AI bond aids, to boost bond trading productivity and aid in dynamic pricing and portfolio management choices. Generative AI bond aids bolster bond trading and investing through real-time scrutiny, improving liquidity identifying, and helping in the selection of bonds based on user preferences. For instance, in June 2023, LTX by Broadridge, a firm based in the US that offers a trading platform for the corporate bond sector, rolled out BondGPT. This fresh generative AI tool created by OpenAI's GPT-4 is intended to improve the efficiency and effectiveness of trading operations in the U.S. corporate bond market. BondGPT enables users to have bond-related inquiries and identify corporate bonds based on particular standards through a conversational interface. The application merges real-time liquidity data from LTX’s Liquidity Cloud and utilizes sophisticated bond similarity technology to associate bonds with similar characteristics to user-made parameters. The objective of this innovation is to make the bond selection and portfolio generation processes easier, providing asset managers, hedge funds, and dealers with enhanced liquidity discovery and pricing decision assistance.
Who Are the Key Players In The Generative Artificial Intelligence In Fintech Market?
Major companies operating in the generative artificial intelligence in fintech market are:
• Google LLC
• Microsoft Corporation
• Amazon Web Services Inc.
• Intel Corporation
• International Business Machines Corporation
• Morgan Stanley
• Salesforce Inc.
• Capgemini Services SAS
• Mastercard International Inc.
• Infosys Ltd.
• Adobe Inc.
• Temenos AG
• Upstart Network Inc.
• Darktrace Holdings Limited
• C3.AI inc.
• DataRobot Inc.
• Kore.AI inc.
• AlphaSense Inc.
• H2O.AI inc.
• Zest AI inc.
• Kasisto Inc.
• CLARA Analytics Inc.
• Zapata Computing Inc.
What Are The Regional Insights Into The Generative Artificial Intelligence In Fintech Market?
North America was the largest region in the generative artificial intelligence (AI) in the fintech market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the generative artificial intelligence in fintech market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
