Global AI in Fintech Market by Components (Solutions and Services), Applications (Virtual Assistant, Business Analytics & Reporting, and Customer Behavioural Analytics), Deployment Modes (Cloud and On-premises), and Regions (North America, Asia Pacific, Europe, Middle East & Africa and Latin America), Forecast, 2021-2028

The global AI in Fintech market is anticipated to expand at a CAGR of 23% during the forecast period, between 2021-2028. Artificial Intelligence (AI) improves outcomes by employing human-like tactics but on a much larger scale. Fintech organisations have transformed considerably in recent years as a result of the computational arms race.

Furthermore, AI is being transformed by data and near-endless volumes of data, and smart contracts may just be a continuation of the current market trend. Cognitive process automation is progressing, allowing AI systems to undertake increasingly complicated automation tasks. AI has taken over the computer sector, allowing businesses to automate time-consuming, high-value jobs.

Making the switch to machine learning (MI) provides a lot of advantages, including cost-effectiveness, improved productivity, reduced mistakes, and enhances customer service. A significant driver of AI in banking is the detection of credit card fraud. AI can recognise the difference between legitimate and hacked data in each transaction and warn banks using the Generative Adversarial Network. Dealing with the delicate problem of data privacy and security, which most fintech businesses are wrestling with, is the most difficult hurdle with AI. The fintech business is supervised by stringent standards and regulations since any data leak or security failure might be fatal.

Market Trends, Drivers, Restraints and Opportunities

• Growing requirement for process automation among financial institutions is driving the market growth.
• Increasing requirement for cost-effective solutions among small financial institutions can boost the growth of the market.
• Data privacy and security issues can hinder the market growth.
• Ongoing technological innovations in AI can create lucrative opportunities during the forecast period.

Scope of AI in Fintech Market Report

The report on AI in fintech market includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.

AI in Fintech Market Segment Insights

Solution segment is projected to hold a significant market share

In the terms of components, the market can be bifurcated into solution and services. The solution segment is estimated to expand at a robust CAGR during the forecast period due to the increasing use of AI solutions in the banking industry. Fintech enterprises, according to the World Economic Forum, can expand employment by 19% by 2030 as a result of AI. In order to obtain a huge number of precise and real-time data, fintech companies use software tools to deploy AI-enabled apps in the banking business.

Business analytics & reporting segment held substantial market share in 2020

Based on applications, the market can be fragmented into virtual assistant, business analytics & reporting, and customer behavioural analytics. The business analytics & reporting segment constituted a significant market share in 2020, and is projected to expand at a rapid rate during the forecast period. AI may be used to find the link between global events and their impact on price through predictive analysis. This information is incredibly valuable for any sort of wealth investment.

AI is used in financial services to protect customer information. It plays a critical role in defending against fraudulent situations by quickly examining large algorithms. P2P enterprises assess the behavior of potential clients to determine the risks of doing business with them. AI can also help analyze the details of a consumer who has no credit history or whose credit history has been erased. The growing number of applications for AI in the fintech sector is expected to foster the segment growth.

Cloud segment to grow at a healthy rate during the forecast period

On the basis of deployment modes, the market can be segregated into cloud and on-premises. The cloud segment is expected to hold a significant share of the market during the forecast period due to growing research activities. A flurry of startups is taking on the major firms in the banking sector due to the advent of AI. The fintech sector is expected to develop at a rapid rate due to latest technologies such as blockchain and cybersecurity, as well as AI.

Some large firms, including as Google and IBM, have started developing their own blockchain technology. The massive technological advancement has been spurred by a growing focus on cloud services, which has increased demand for cloud-based AI technology solutions.

North America to dominate the global market

In terms of regions, the AI in fintech market can be fragmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. North America constituted a significant share of the market in 2020.  North America has the most financial firms due to high Internet penetration rate, particularly mobile internet. According to the 'Mobile Economic 2020' research, mobile data usage in North America is expected to roughly fivefold by 2020.

Furthermore, the AI sector in North America is projected to expand in the near future with the advent of 5G. The North America AI in fintech market is being driven by a large number of startups and organizations that provide AI services to financial services. Virtual assistance, business analytics and reporting, and customer behavioral analytics are just few of the many applications.

Segments

By Components

• Solutions
• Services

By Applications

• Virtual Assistant
• Business Analytics & Reporting
• Customer Behavioural Analytics

By Deployment Modes

• Cloud
• On-premises

By Regions

• North America
• Asia Pacific
• Europe
• Middle East & Africa
• Latin America

By Key Players

• IBM Corporation
• Intel Corporation
• Microsoft Corporation

Competitive Landscape

Some of the key players in the AI in Fintech Market are IBM Corporation, Intel Corporation, and Microsoft Corporation, among others. Due to the existence of several global firms in the Fintech business, AI in the market is fragmented. Furthermore, a number of large-scale acquisitions and collaborations concentrating on innovation are projected to take place in the near future.