AI in Fintech Market by Type (Solution, Service); by Application (Virtual Assistant, Business Analytics & Reporting, Customer Behavioral Analytics); Deployment Mode (Cloud, On-Premises); and by Region (North America, Europe, Asia Pacific, Latin America, MEA) - Global Forecasts 2021 to 2027

Date : Sep 2021

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Report ID : 769

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Category : Semiconductor & Electronics

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Report Format:  PDF EXCEL PPT WORD

The Global AI in Fintech Market was valued at USD 7.8 Bn in 2020 and is expected to reach USD 34.1 Bn by 2027, with a growing CAGR of 23.5% during the forecast period.

Artificial Intelligence in Fintech Market Definition:

Fintech, or financial technology, refers to the combination of advanced technology with financial offerings to enhance or automate banking and investing operations. Artificial Intelligence (AI) is broadly utilized in financial institutions for detecting and stopping frauds via digital banking channels. It includes digital lending, credit score, mobile banking, asset management, insurance, and buying and selling processes. AI in fintech is also applied for working robot-advisors to offer financial planning services based on the goals, risk tolerance, financial standing, budget, and spending styles of the individuals. It additionally identifies any Personally Identifiable Information (PII) leaked on the web and undertakes important actions to secure the data.

AI in Fintech Market

AI in Fintech Market Dynamics:

The rapid digitization of the AI and ML in Banking, Financial Services, and Insurance (BFSI) enterprise throughout the globe is one of the key factors driving the growth of the Artificial Intelligence in fintech market. Moreover, technological advancements such as the integration of fintech solutions with machine learning (ML), neural networks, big data and evolutionary algorithms propel the growth of the AI in fintech market during the forecast period.

In addition, the growing demand for process automation amongst financial organizations is considerably the major driving factor of the AI in fintech market growth. Process automation is one of the considerable drivers of artificial intelligence in financial organizations. However, it is further evolving into cognitive process automation, in which AI systems can carry out complicated automation processes. For instance, in May 2020, Traydstream, a FinTech that scans trade files with Artificial Intelligence (AI), partnered with Infosys Finacle to enforce blockchain technology and similarly automate trade finance. This partnership is aimed to allow Finacle’s blockchain tech, known as Finacle TradeConnect, to be incorporated with Traydstream’s platform, which makes use of AI to scan files and reduce the time it takes to check on rules or regulations in trade, in which errors may be costly and time-consuming to correct.

The Global AI in Fintech Market Segmentation:

By Type

  • Solution
  • Service

By Application

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

By Deployment Mode

  • Cloud
  • On-Premises

By Region

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

Company Profiles and Competitive Intelligence:

  • Microsoft
  • Google
  • IBM Corporation
  • Intel Corporation
  • Inbenta Technologies Inc.
  • Nuance Communications, Inc.
  • ComplyAdvantage
  • Salesforce.com, Inc.
  • Amazon Web Services, Inc.
  • SAMSUNG
  • Amelia US LLC
  • Upstream Tech, Inc  
  • SparkCognition
  • Traydstream
  • Alibaba Cloud
  • Sift
  • Nauto, Inc.
  • Tempus Labs, Inc.
  • Siemens
  • AEye, Inc.

Based on application, the customer behavioral analytics segment in AI in fintech market is expected to grow at the highest CAGR during the forecast period because it detects all the risks in the cooperation with that particular customer

Based on application, the AI in fintech market has been segmented into a virtual assistant, business analytics & reporting, and customer behavioral analytics. The customer behavioral analytics in AI in fintech market is expected to grow at the highest CAGR during the forecast period because it analyses all the risks associated with customers. In addition to helping in regulatory and compliance management, business analytics and reporting can help in analysing customer behaviour will create the demand for AI in fintech market.

Based on the deployment mode, on-premises segment dominated the AI in fintech market due to its advantages such as Total Cost of Ownership (TCO)

Based on deployment mode, the global AI in fintech market has been segmented into cloud and on-premises. The on-premises segment dominated the global AI in fintech market because it reduces the total cost of ownership. However, the cloud segment in AI in fintech market is going to witness significant growth in the market during the forecast period. The growth in the cloud deployment is attributed to the advantage such as high level of security as well as affordable in nature.

Based on region, North America held the major market share in the AI in fintech market in 2019 due to its strong economy

North America held the major market share in AI in fintech market in 2019. The growth in the region is attributed to the strong economy, high investment in research and development, and the presence of prominent players in the region. Moreover, rapid digitalization is one of the significant factors contributing to the growth of AI in fintech market. For instance, according to the Digital Banking Report 2019, the adoption rate of fintech services in Canada is 50% and the United States is 46%. Thus, proliferating the growth of the AI in fintech market during the forecast period.

The Asia Pacific region in AI in fintech market is expected to grow at the highest CAGR during the forecast period owing to the faster adoption of digital payment and increasing penetration of internet services in the region. The supportive government initiatives provide ample opportunity for the growth of the AI in fintech market. For instance, according to the secondary sources, by 2030 the use of AI in the banking sector is expected to generate around USD 99 Bn in value in the Asia Pacific region alone.

The report also provides an in-depth analysis of AI in fintech market dynamics such as drivers, restraints, opportunities, and challenges

Drivers

  • The rapid digitization in Banking Financial Services and Insurance (BFSI)
  • Technological advancements
  • Increasing internet penetration
  • Availability of spatial data

Restraints

  • Lack of skilled consultants to deploy AI in Fintech

Opportunities

  • The rapid development in 5G infrastructure

Challenges

  • The increasing threats of Cybercrime

COVID-19 Impact on the AI in Fintech Market Analysis

The COVID-19 outbreak had a significant impact on various industries such as oil & gas, retail, financial services, and others due to the strict lockdown imposed by the government to limit the spread of the pandemic. AI in fintech market has impacted for the short run during the COVID-19 pandemic. For instance, according to the survey of the Bank of England in 2020, around 12% of banks plan to reduce their investment in AI, which shows that banks hired less AI in 2020 as compared to the previous year.

*Note: A detailed analysis specific to AI in fintech market will be provided in the report.

The AI in fintech market report also provides an in-depth analysis of key trends:

  • Fintech has been undergoing a continued evolution in the landscape of investment management. Advanced technology and solution adoption, consisting of the usage of big data, AI, and machine learning (ML), to assist companies to examine investment opportunities, optimize their investment portfolios, and mitigate the related risks, had been clinical in the technology adoption.
  • The increased use of automated virtual financial assistants.

The report also provides an in-depth analysis of recent news developments and investments:

  • In May 2020, Sentifi AG announced the expanded use of alternative data-based analytics to uncover opportunities and manage risks. Sentifi’s new analytics encompasses detection of the sector, enterprise outliers, ESG activities with ability asset valuation impact, investment subject matters trending real-time whilst providing investors the ability to come across outliers within their personal portfolio.
  • In May 2020, SparkCognition, an industrial AI company, announced that MILIZE Co., a Japanese AI, and fintech company, has acquired SparkCognition. Ltd., for financial institutions, and also provide fraud detection and Anti-Money Laundering (AML).

The unique insights provided by this report also include the following:

  • In-depth Value Chain Analysis
  • Opportunity Mapping
  • Sector Snapshot
  • Key Players Positioning Matrix
  • Regulatory Scenario
  • Strategies Adopted-benchmarking Heat Map
  • AI in fintech trends Market Trends
  • Covid-19 Impact Analysis
  • Product Comparison
  • Pre & Post COVID-19 Impact on the AI in Fintech Market
  • Competitive Landscape

Frequently Asked Questions (FAQs)

What is the market size of the global AI in fintech market?

The global AI in fintech market was valued at USD 7.8 Billion in 2020 and is anticipated to reach USD 34.1 Billion by 2027.

What is the estimated market growth rate of the AI in fintech industry?

The AI in fintech market is estimated to grow at a compound annual growth rate (CAGR) of 23.5% during the forecast period.

What is the share of North America in the AI in fintech industry?

North America to dominate the AI in fintech market throughout the forecast period.

Who are the key players in the AI in fintech industry?

A few key players include, but are not limited to Microsoft, Google, IBM Corporation, Intel Corporation, Inbenta Technologies Inc., Nuance Communications, ComplyAdvantage, Salesforce.com, Inc., Amazon Web Services, Inc., and SAMSUNG.

What are the restraints for the AI in fintech industry?

Skilled consultants are insufficient to deploy AI in fintech is the major restraining factor that hampers the growth of the market.

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Table of Contents AI in Fintech Market:

Market Introduction

  • Definition
  • Scope Of The Study
  • List Of Assumptions
  • Market Structure
  • Scope of the Study: Segmentation 
  • Timeframe, Currency and Limitations

Research Methodology

  • 3P Research Approach
  • Market Sizing Approach
  • Data Sources
  • Primary Research Coverage

Executive Summary

  • Market Summary
  • Market Snapshot
  • Regional Snapshot
  • Country Snapshot

Premium Insights

  • Key Trend Analysis
  • New revenue Pockets
  • Pain Point Analysis
  • Company Market Share Analysis, by Region
  • Strategies Adopted-Benchmarking Heat Map
  • Regulatory Landscape
  • PESTEL Analysis
  • Regional Lifecycle
  • Competitive Benchmarking

Market Overview & Competitive Landscape

  • Competitive Landscape
  • Investment Scenario by key Players
  • Key Player Overview
  • Product comparison
  • Player Wise Geographic Presence
  • Player Wise Target Customer Segment
  • Recent News
    • Product Launches & upgrades
    • R&D / Innovation
    • Merger & Acquisition
    • JV & Partnership
    • Recognition and others

Market Segmentation (Market Size and Share Analysis)

  • Global Market Size & Historic Growth
  • Market Size by Type
    • Solution
    • Service
  • Market Size by Application
    • Virtual Assistant
    • Business Analytics & Reporting
    • Customer Behavioral Analytics
  • Market Size by Deployment Mode
    • Cloud
    • On-Premises

Market Dynamics

  • Market Drivers
  • Opportunities
  • Value Chain Analysis
  • Pricing Analysis

COVID – 19 Opportunity Mapping

  • Key Drivers & Anticipated Revival Period
  • Key Trends Analysis
  • Impact on End user Industry
  • Opportunity Analysis

Regional Market Analysis

  • North America
    • US
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Europe
  • APAC
    • China
    • India
    • Japan
    • South Korea
    • Rest of APAC
  • Latin America
    • Mexico
    • Brazil
    • Argentina
    • Rest of LATAM
  • Middle East & Africa
    • GCC
    • Rest of MEA

Company Profiles

  • Microsoft
    • Company Fundamentals
    • Financial Analysis (Subject to Availability)
    • Product Portfolio
    • SWOT Analysis
  • Google
  • IBM Corporation
  • Intel Corporation
  • Inbenta Technologies Inc.
  • Nuance Communications, Inc.
  • ComplyAdvantage
  • Salesforce.com, Inc.
  • Amazon Web Services, Inc.
  •  SAMSUNG
  • Amelia US LLC
  • Upstream Tech, Inc  
  • SparkCognition
  • Traydstream
  • Alibaba Cloud
  • Sift
  • Nauto, Inc.
  • Tempus Labs, Inc.
  • Siemens
  • AEye, Inc.

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