The global AI in Fintech Market is expected to grow from USD 1,337.7 million in 2017 to USD 7,305.6 million by 2022, at a Compound Annual Growth Rate (CAGR) of 40.4%. The AI in Fintech solution and services help in data analysis, wealth management, fraud detection, financial literacy, and many more. The major driving factors for the market are the need for increasing operational efficiency and reduced costs, growing internet penetration, and availability of spatial data.
The Asia Pacific (APAC) region is expected to show the highest CAGR during the forecast period in the AI in Fintech market. The higher technological advancements in the APAC region has left organizations wanting for more efficient and faster AI solutions for the finance market to manage customer queries and front and back end applications issues. The vendors are providing a complete new platform and AI solution to cater to the organizations’ requirements.
On the basis of component, the AI in Fintech market is broadly classified into solution (software tools and platforms) and services (managed and professional). The solution segment is expected to grow at the highest CAGR during the forecast period. With the growth in the market, the demand for services is also expected to increase, specifically for managed services. As the financial firms are working toward improvement of business processes with the help of AI technology, the demand for professional services is also expected to increase.
On the basis of solution, the AI in Fintech market is segmented into software tools and platforms. In the software tools market, data discovery is expected to grow at the highest CAGR during the forecast period. It allows financial institutes to extract non-trivial data that can be utilized to offer innovative solutions in the AI in Fintech market.
On basis of deployment modes, the AI in Fintech market is segmented into cloud and on-premises. The cloud segment is expected to grow at the highest CAGR during the forecast period. Cloud-based solutions offer rapid implementation, security, and ease of use. The AI in Fintech solution deployed on cloud ensures that enterprises have to invest lesser for managing their financial issues.
The AI in Fintech market is also segmented on the basis of application area, which include segments, such as virtual assistants (chatbots), business analytics and reporting, customer behavioral analytics, and others (includes market research, advertising, and marketing campaign). The virtual assistants (chatbots) and customer behavioral analytics are expected to grow at a faster speed during the forecast period. Finance companies are using virtual assistances for cost effectiveness, speed, and accuracy in its business operations.
AI is proving beneficial in various business operations of the finance industry, and financial institutions are deploying AI to get a competitive advantage in the market.