The AI in fintech market has demonstrated substantial expansion, commencing at $11.35 billion in 2023 and reaching $14.41 billion in 2024, reflecting a considerable compound annual growth rate (CAGR) of 27.1%. The growth in the historical period is associated with risk management and fraud prevention, enhanced customer experience, the automation of routine tasks, and the integration of data analytics for informed decision-making, alongside algorithmic trading and investment. Looking forward, the market is anticipated to experience exponential growth, projecting a market size of $39.44 billion in 2028, at a CAGR of 28.6%. This growth is expected to be driven by the expanding use of chatbots and virtual assistants, a heightened focus on regulatory compliance, and the adoption of robo-advisors for wealth management. Prominent trends in the forecast period include the automation of regulatory compliance, alternative credit scoring models, cross-selling and upselling recommendations, cybersecurity enhancements facilitated by AI, and the integration of decentralized finance (DeFi) automation.
Major Driver In The AI in FinTech Market
The need for fraud detection in fintech or financial institutions is contributing to the growth of AI in the fintech market. Artificial intelligence, or machine learning algorithms, can learn new information from the data collected, the more data that AI manipulates, the more AI can be learned, and the banks can gain deeper insights with AI technology. The biggest advantage of AI is that over time the algorithm builds on collecting more data and learning more about how to use it. The advantage is that it starts the moment the AI is deployed and continues to grow without interruption of contribution. According to PricewaterhouseCoopers’s survey in 2022, in the previous 24 months, fraud, corruption, or other economic crimes were reported by 46% of the organizations polled. Moreover, in September 2021, banks are deploying AI-based solutions at an unprecedented rate, spending more than $217 billion on AI applications for middle-office use cases including fraud prevention and risk assessment. The need for fraud detection in fintech drives the market for AI in fintech.
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AI in FinTech Market Competitive Landscape
Alphabet Inc., Microsoft Corporation, Klarna Inc., Amazon Web Services Inc., Intel Corporation, International Business Machines Corporation, PayPal Holdings Inc., Square Inc., Salesforce.com Inc., Stripe Inc., Social Finance Inc., Robinhood Markets Inc., Nuance Communications Inc., Affirm Inc., Revolut Ltd., Adyen N.V., Ant Financial Services Group, On Deck Capital Inc., Kabbage Inc., Plaid Inc., IPsoft Inc., Onfido Limited, Betterment LLC, Funding Circle Limited, Wealthfront Corporation, Kensho Technologies Inc., Inbenta Technologies Inc., Trifacta Inc., Next IT Corporation, Zeitgold GmbH, ZestFinance Inc., Ayasdi Inc., FeedzAI inc., Numerai LLC, Riskified Ltd., Oscar Health Inc., Ripple Labs Inc., Chainalysis Inc., ThetaRay Ltd., Darktrace Limited, TruValue Labs Inc., Wealthsimple Inc., TrueAccord Corporation
Key AI in FinTech Market Trend
Technological advancement is the key trend gaining popularity in the AI in fintech market. For instance, in 2021, in India, the Robo-advisory technology emerged as a digital platform that provides financial advice through AI-driven software without human intervention. It advises users on selecting the right stocks and suggests replacing existing stocks in portfolios based on factors such as valuations, governance, and performance.
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AI in FinTech Market Segmentation
The AI in fintech market covered in this report is segmented –
1) By Type: Solutions, Services
2) By Deployment: Cloud, On-premise
3) By Application: Asset Management, Risk Investigation, Business Analytics, Regulatory Compliance, Data Collection, Predictive Analytics, Virtual Assistance, Other Applications
By Geography:The regions covered in the ai in fintech market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
North America was the largest region in the AI in fintech market in 2023.
The AI in FinTech Global Market Report 2024 furnishes information about the global ai in fintech market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.
