AI in Fintech Market Growth Opportunities & Forecast [2031]

AI in Fintech Market Growth Opportunities & Forecast [2031]

Segments - AI in Fintech Market by Component (Services and Solutions), Deployment Mode (On-premise and Cloud), Application (Business Analytics & Reporting, Virtual Assistant, Credit Scoring, Customer Behavior Analytics, Quantitative & Asset Management, and Fraud Detection), and Region (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2023 – 2031

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Author : Raksha Sharma
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Fact-checked by : Vineet Pandey
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Editor : Shruti Bhat

Upcoming | Report ID :ICT-SE-2835 | 4.8 Rating | 54 Reviews | 199 Pages | Format : PDF Excel PPT

Report Description


AI in Fintech Market Outlook 2031

The global AI in fintech market size was USD 10.74 Bn in 2022 and is likely to reach USD 39.29 Bn by 2031, expanding at a CAGR of 15.5% during 2023–2031. The market growth is attributed to the rising integration of AI to automate banking & investing activities and for fraud detection.

In recent times, the convergence of Artificial Intelligence (AI) with the fintech industry has emerged as a transformative factor that has reshaped financial services. AI plays a crucial role in providing diverse capabilities such as fraud detection, predictive analysis, and personalized customer experience. Major banks and financial firms are integrating Artificial Intelligence (AI) and Machine Learning (ML) to improve operational efficiency, customer engagement, and risk management.

AI in Fintech Market Outlook

AI automates basic banking activities such as payments, customer service requests, transfers, and deposits. It also helps with the loan and credit card application process such as acceptance and rejection as well as provides a near-instant response.

Companies present in the fintech industry are heavily using AI for customer services, especially chatbots and personal assistants. AI and ML assist banking software development companies in improving security and detecting fraud.


The COVID-19 pandemic has changed the way people see financial services. The fintech industry bolstered during the pandemic, as the number of people using online banking services for transactional purposes increased.

This was due to the strict lockdowns and regulations imposed by governments across the globe to reduce the spread of the virus. With the increased usage of online services and UPI payments, companies competing in the fintech market heavily integrated AI-enabled services to offer seamless financial services and customer support. These factors boosted the market during the pandemic.

AI in Fintech Market Dynamics

AI in Fintech Market Dynamics

Drivers

Increasing awareness among fintech companies regarding the benefit of integrating AI into their financial system drives the market. Fintech companies and banks have all the sensitive customer-driven data and AI & machine learning have the potential of processing a vast amount of data within seconds.

Fintech companies are adopting AI-enabled services to deliver customer-centric solutions, as the increasing number of people are using mobile banking and various fintech applications for daily banking activities.

Restraints

Lack of human intuitions and subjective judgment hampers the market. AI algorithm processes the data efficiently; however, it lacks human judgment. Embedded biased results are another risk associated with using AI in the fintech industry. In the fintech industry, decision-making is one of the crucial factors, as one wrong decision leads to major losses.

In the fintech industry, AI systems handle sensitive financial information, and organizations make financial decisions based on that. There are rising concerns regarding data privacy and security risks as all of that info is sensitive and customer-centric.

Emerging Opportunities

Increasing adoption of AI-powered chatbots is expected to create lucrative opportunities for the market. AI-powered chatbots are gaining popularity in the fintech industry, as they efficiently manage customer inquiries and transactions. AI-powered chatbots are becoming increasingly popular in financial services, especially in banking.

Conversational AI are used for customer support such as transaction history, balance inquiries, and even account openings. AI-powered chatbots help customers manage their finances and make payments effortlessly. Companies present in the finance industry are increasingly adopting AI-powered chatbots.

Scope of the AI in Fintech Market Report

The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Attributes

Details

Report Title

AI in Fintech Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast

Base Year

2022

Historic Data

2016–2021

Forecast Period

2023–2031

Segmentation

Component (Services and Solutions), Deployment Mode (On-premise and Cloud), and Application (Business Analytics & Reporting, Virtual Assistant, Credit Scoring, Customer Behavior Analytics, Quantitative & Asset Management, and Fraud Detection)

Regional Scope

Asia Pacific, North America, Latin America, Europe, and Middle East & Africa

Report Coverage

Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast

Key Players Covered in the Report

Amazon Web Services, Inc.; Amelia US LLC; ACTIVE AI; Betterment.; ComplyAdvantage; Dataminr; Google LLC; IBM; Instructure, Inc.; Microsoft; Onfido; Oracle; Ripple; and Upstart Network, Inc.

AI in Fintech Market Segment Insights

Component Segment Analysis

Based on component, the market is divided into services and solutions. The solutions segment is expected to expand at a significant growth rate during the projection period, owing to the increasing usage of AI-based fintech solutions by major banks. AI-based solutions help banks in reading vast amounts of financial and customer data within seconds, which aids in improved decision making.

AI solutions of some companies help fintech firms and banks in detecting and addressing financial frauds. It also helps in improving the client connection by offering advanced hassle-free solutions. The segment is expected to grow during the forecast period, due to the increasing adoption of AI-enabled solutions for improved and quick transactions.

AI in Fintech Market Component

Deployment Mode Segment Analysis

On the basis of deployment mode, the AI in fintech market is segregated into on-premise and cloud. The on-premise segment dominated the market in 2022, as banks and companies competing in the fintech industry are integrating on-premise due to the rising security concerns. Fintech companies have all the financial and sensitive consumer data.

The need for on-premise AI-based fintech services is growing, as the data theft and cyberattack cases are increasing. On-premise services have less risk of cyberattacks, as these services are installed on in-house platforms.


The cloud segment is anticipated to hold a major market share in the coming years, due to the increasing adoption of cloud-based solutions in the fintech industry. Cloud platforms allow fintech companies to scale their AI solutions easily, which help to handle the workload and demands. Cloud service providing companies are heavily investing in security measures to ensure that sensitive financial data processed by AI application remains secure and compliant with the industry regulations.

Fintech firms are leveraging on powerful cloud-based analytic tools to derive meaningful industry insights from vast amount of data. These insights help them in decision-making processes and risk management. The segment is expected to boost during the forecast period, due to the growing adoption of cloud-based solution by fintech firms and banks to enhance the efficiency and security.

Application Segment Analysis

Based on application, the global market is segmented into business analytics & reporting, virtual assistant, credit scoring, customer behavior analytics, quantitative & asset management, and fraud detection. The business analytics & reporting segment is expected to register a robust growth rate during the forecast period, owing to the increasing usage of AI for business analytics and forecasting purposes.

Fintech companies are using AI and big data-based solutions to improve operational efficiency. Artificial Intelligence (AI) helps fintech companies in forecasting and making improved business decisions.


The customer behavior analytics segment is projected to register a considerable CAGR during the forecast period. AI helps companies present in the fintech industry to analyze vast amounts of customer data to gain insights into customer behavior and preferences.

Furthermore, fintech companies can predict customer needs, detect patterns of fraudulent activities, and personalized services with the help of AI. Major banks and fintech companies are integrating AI into their systems, as it enhances customer experience, increases security, and help companies to make market-driven decision.

AI in Fintech Market Application

Regional Outlook

In terms of region, the global AI in fintech market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the projection period, due to the growing usage of AI in the well-established regional fintech industry.

Moreover, increasing government investments and initiatives on AI is likely to drive the market in the coming years. For instance, according to the recent Standford University study report, in the fiscal year 2022, the US government spent around USD 3.3 billion on Artificial Intelligence.


Major banks in the region have started using blockchain technology for easy transactions and to keep a detailed track of each transaction. AI enhances blockchain systems by improving transactions through anomaly detection and pattern recognition.

Machine learning algorithms enhance the security of the blockchain network by identifying unusual activities and analyzing transaction patterns. Moreover, companies offering AI solutions are partnering with fintech and banking firms to provide advanced solutions, which is expected to drive the market during the projection period. For instance,

  • In June 2022, Lucinity partnered with a fraud management company, SEON, to include real-time fraud prevention capabilities in its AML compliance software.

AI in Fintech Market Region

Segments

The AI in Fintech Market has been segmented on the basis of

Component

  • Services
  • Solutions

Deployment Mode

  • On-premise
  • Cloud

Application

  • Business Analytics & Reporting
  • Virtual Assistant
  • Credit Scoring
  • Customer Behavior Analytics
  • Quantitative & Asset Management
  • Fraud Detection

Region

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

Key Players

Competitive Landscape

Key players competing in the global AI in fintech market are Amazon Web Services, Inc.; Amelia US LLC; ACTIVE AI; Betterment.; ComplyAdvantage; Dataminr; Google LLC; IBM; Instructure, Inc.; Microsoft; Onfido; Oracle; Ripple; and Upstart Network, Inc.

These companies adopted development strategies, including mergers, acquisitions, partnerships, collaboration, product launches, and production expansion, to expand their consumer base globally. For instance,

  • In March 2023, CSI, a leading provider of end-to-end fintech and RegTech solutions, announced its partnership with Hawk AI, a leading global provider of fraud and anti-money laundering (AML) prevention technology for payment companies and banks to deliver its latest products as well as WatchDOG AML and WatchDOG Fraud.

AI in Fintech Market Key Players

Table Of Content

1. Executive Summary
2. Assumptions and Acronyms Used
3. Research Methodology
4. AI in Fintech Market Overview
  4.1. Introduction
     4.1.1. Market Taxonomy
     4.1.2. Market Definition
  4.2. Macro-Economic Factors
     4.2.1. Industry Outlook
  4.3. AI in Fintech Market Dynamics
     4.3.1. Market Drivers
     4.3.2. Market Restraints
     4.3.3. Opportunity
     4.3.4. Market Trends
  4.4. AI in Fintech Market - Supply Chain
  4.5. Global AI in Fintech Market Forecast
     4.5.1. AI in Fintech Market Size (US$ Mn) and Y-o-Y Growth
     4.5.2. AI in Fintech Market Size (000’ Units) and Y-o-Y Growth
     4.5.3. AI in Fintech Market Absolute $ Opportunity
5. Global AI in Fintech Market Analysis and Forecast by Applications
  5.1. Market Trends
  5.2. Introduction
     5.2.1. Basis Point Share (BPS) Analysis by Applications
     5.2.2. Y-o-Y Growth Projections by Applications
  5.3. AI in Fintech Market Size and Volume Forecast by Applications
     5.3.1. Business Analytics & Reporting
     5.3.2. Virtual Assistant
     5.3.3. Credit Scoring
     5.3.4. Customer Behavior Analytics
     5.3.5. Quantitative & Asset Management
     5.3.6. Fraud Detection
  5.4. Absolute $ Opportunity Assessment by Applications
  5.5. Market Attractiveness/Growth Potential Analysis by Applications
6. Global AI in Fintech Market Analysis and Forecast by Region
  6.1. Market Trends
  6.2. Introduction
     6.2.1. Basis Point Share (BPS) Analysis by Region
     6.2.2. Y-o-Y Growth Projections by Region
  6.3. AI in Fintech Market Size and Volume Forecast by Region
     6.3.1. North America
     6.3.2. Latin America
     6.3.3. Europe
     6.3.4. Asia Pacific
     6.3.5. Middle East and Africa (MEA)
  6.4. Absolute $ Opportunity Assessment by Region
  6.5. Market Attractiveness/Growth Potential Analysis by Region
  6.6. Global AI in Fintech Demand Share Forecast, 2019-2026
7. North America AI in Fintech Market Analysis and Forecast
  7.1. Introduction
     7.1.1. Basis Point Share (BPS) Analysis by Country
     7.1.2. Y-o-Y Growth Projections by Country
  7.2. North America AI in Fintech Market Size and Volume Forecast by Country
     7.2.1. U.S.
     7.2.2. Canada
  7.3. Absolute $ Opportunity Assessment by Country
  7.4. North America AI in Fintech Market Size and Volume Forecast by Applications
     7.4.1. Business Analytics & Reporting
     7.4.2. Virtual Assistant
     7.4.3. Credit Scoring
     7.4.4. Customer Behavior Analytics
     7.4.5. Quantitative & Asset Management
     7.4.6. Fraud Detection
  7.5. Basis Point Share (BPS) Analysis by Applications
  7.6. Y-o-Y Growth Projections by Applications
  7.7. Market Attractiveness/Growth Potential Analysis
     7.7.1. By Country
     7.7.2. By Product Type
     7.7.3. By Application
  7.8. North America AI in Fintech Demand Share Forecast, 2019-2026
8. Latin America AI in Fintech Market Analysis and Forecast
  8.1. Introduction
     8.1.1. Basis Point Share (BPS) Analysis by Country
     8.1.2. Y-o-Y Growth Projections by Country
     8.1.3. Latin America Average Pricing Analysis
  8.2. Latin America AI in Fintech Market Size and Volume Forecast by Country
      8.2.1. Brazil
      8.2.2. Mexico
      8.2.3. Rest of Latin America
   8.3. Absolute $ Opportunity Assessment by Country
  8.4. Latin America AI in Fintech Market Size and Volume Forecast by Applications
     8.4.1. Business Analytics & Reporting
     8.4.2. Virtual Assistant
     8.4.3. Credit Scoring
     8.4.4. Customer Behavior Analytics
     8.4.5. Quantitative & Asset Management
     8.4.6. Fraud Detection
  8.5. Basis Point Share (BPS) Analysis by Applications
  8.6. Y-o-Y Growth Projections by Applications
  8.7. Market Attractiveness/Growth Potential Analysis
     8.7.1. By Country
     8.7.2. By Product Type
     8.7.3. By Application
  8.8. Latin America AI in Fintech Demand Share Forecast, 2019-2026
9. Europe AI in Fintech Market Analysis and Forecast
  9.1. Introduction
     9.1.1. Basis Point Share (BPS) Analysis by Country
     9.1.2. Y-o-Y Growth Projections by Country
     9.1.3. Europe Average Pricing Analysis
  9.2. Europe AI in Fintech Market Size and Volume Forecast by Country
     9.2.1. Germany
     9.2.2. France
     9.2.3. Italy
     9.2.4. U.K.
     9.2.5. Spain
     9.2.6. Russia
     9.2.7. Rest of Europe
  9.3. Absolute $ Opportunity Assessment by Country
  9.4. Europe AI in Fintech Market Size and Volume Forecast by Applications
     9.4.1. Business Analytics & Reporting
     9.4.2. Virtual Assistant
     9.4.3. Credit Scoring
     9.4.4. Customer Behavior Analytics
     9.4.5. Quantitative & Asset Management
     9.4.6. Fraud Detection
  9.5. Basis Point Share (BPS) Analysis by Applications
  9.6. Y-o-Y Growth Projections by Applications
  9.7. Market Attractiveness/Growth Potential Analysis
     9.7.1. By Country
     9.7.2. By Product Type
     9.7.3. By Application
  9.8. Europe AI in Fintech Demand Share Forecast, 2019-2026
10. Asia Pacific AI in Fintech Market Analysis and Forecast
  10.1. Introduction
     10.1.1. Basis Point Share (BPS) Analysis by Country
     10.1.2. Y-o-Y Growth Projections by Country
     10.1.3. Asia Pacific Average Pricing Analysis
  10.2. Asia Pacific AI in Fintech Market Size and Volume Forecast by Country
     10.2.1. China
     10.2.2. Japan
     10.2.3. South Korea
     10.2.4. India
     10.2.5. Australia
     10.2.6. Rest of Asia Pacific (APAC)
  10.3. Absolute $ Opportunity Assessment by Country
  10.4. Asia Pacific AI in Fintech Market Size and Volume Forecast by Applications
     10.4.1. Business Analytics & Reporting
     10.4.2. Virtual Assistant
     10.4.3. Credit Scoring
     10.4.4. Customer Behavior Analytics
     10.4.5. Quantitative & Asset Management
     10.4.6. Fraud Detection
  10.5. Basis Point Share (BPS) Analysis by Applications
  10.6. Y-o-Y Growth Projections by Applications
  10.7. Market Attractiveness/Growth Potential Analysis
     10.7.1. By Country
     10.7.2. By Product Type
     10.7.3. By Application
  10.8. Asia Pacific AI in Fintech Demand Share Forecast, 2019-2026
11. Middle East & Africa AI in Fintech Market Analysis and Forecast
  11.1. Introduction
     11.1.1. Basis Point Share (BPS) Analysis by Country
     11.1.2. Y-o-Y Growth Projections by Country
     11.1.3. Middle East & Africa Average Pricing Analysis
  11.2. Middle East & Africa AI in Fintech Market Size and Volume Forecast by Country
     11.2.1. Saudi Arabia
     11.2.2. South Africa
     11.2.3. UAE
     11.2.4. Rest of Middle East & Africa (MEA)
  11.3. Absolute $ Opportunity Assessment by Country
  11.4. Middle East & Africa AI in Fintech Market Size and Volume Forecast by Applications
     11.4.1. Business Analytics & Reporting
     11.4.2. Virtual Assistant
     11.4.3. Credit Scoring
     11.4.4. Customer Behavior Analytics
     11.4.5. Quantitative & Asset Management
     11.4.6. Fraud Detection
  11.5. Basis Point Share (BPS) Analysis by Applications
  11.6. Y-o-Y Growth Projections by Applications
  11.7. Market Attractiveness/Growth Potential Analysis
     11.7.1. By Country
     11.7.2. By Product Type
     11.7.3. By Application
  11.8. Middle East & Africa AI in Fintech Demand Share Forecast, 2019-2026
12. Competition Landscape
  12.1. Global AI in Fintech Market: Market Share Analysis
  12.2. AI in Fintech Distributors and Customers
  12.3. AI in Fintech Market: Competitive Dashboard
  12.4. Company Profiles (Details: Overview, Financials, Developments, Strategy)
     12.4.1. Amazon Web Services, Inc.
     12.4.2. Amelia US LLC
     12.4.3. ACTIVE AI
     12.4.4. Betterment.
     12.4.5. ComplyAdvantage
     12.4.6. Dataminr
     12.4.7. Google LLC
     12.4.8. IBM
     12.4.9. Instructure, Inc.
     12.4.10. Microsoft
     12.4.11. Onfido
     12.4.12. Oracle
     12.4.13. Ripple
     12.4.14. Upstart Network, Inc.

Methodology

Our Clients

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The John Holland Group
Nestle SA
Pfizer
FedEx Logistics
Deloitte
Siemens Healthcare
Honda Motor Co. Ltd.