AI In Fintech Market to be Worth $41.16 Billion by 2030: Grand View Research, Inc.

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Jun 08, 2022, 09:00 ET

SAN FRANCISCO, June 8, 2022 /PRNewswire/ -- The global artificial intelligence in fintech market size is expected to reach USD 41.16 billion by 2030, growing at a CAGR of 16.5% from 2022 to 2030, according to a new report by Grand View Research, Inc. Artificial intelligence (AI) is widely used in financial organizations to improvise their precision levels, enhance their efficiency and instant query resolving through digital banking channels. AI technology like machine learning can help organizations raise their value by improving loan underwriting and eliminating financial risk. Organizations are also using it to build more robust fraud detection and prevention systems and help accelerate risk assessments and fraud detection.

Key Insights & Findings from the report:

Some of the regions in North America have the most competitive and constantly changing AI technology in the world's fintech sector. In the industrialized economies of Canada and the U.S., there is a strong emphasis on R&D-derived inventions.
The adoption of software tools with the deployment of AI-enabled financial solutions extracts accurate, comprehensive, and enormous amounts of data on time.
The growing adoption of managed services helps administer AI-enabled fintech applications and is expected to drive the market growth.
Cloud-based solutions store vital resources and provide a wide range of flexible AI solutions for the fintech business. The segment generated the highest revenue in 2021.
The North America region dominated the global market in 2021. However, Asia Pacific is projected to register the fastest CAGR from 2022 to 2030.

Get more Insights from 100-pages market research report, "Artificial Intelligence In Fintech Market Size, Share & Trends Analysis Report By Component (Solutions, Services), Deployment (Cloud, On-premise), By Application (Fraud Detection, Virtual Assistants), And Segment Forecasts, 2022 - 2030", published by Grand View Research.

Artificial Intelligence in Fintech Market Growth & Trends

The AI in fintech market is expected to increase in the coming years due to advancement in technology that is boosting financial service providers' business processes. Some of the primary drivers of the market include growing internet penetration and geographical data availability. AI and machine learning have aided banks and fintech firms by allowing them to process massive volumes of client data. For instance, in March 2022, KBC Group, a Belgian-based multi-channel bank insurer, commercialized its portfolio of AI applications through Discai, its wholly-owned subsidiary, beginning with introducing an AI application meant to prevent money laundering.

Discai will first provide a unique and high-performance AI-based system for closely monitoring money laundering, take a phased approach to the market, and collaborate with partners to distribute and integrate these applications. Financial institutions and banks are implementing AI technologies to unlock insights and information hidden in unstructured documents and automate the manual processes that banks have historically performed at double-quick speed. In addition, the growing demand for process automation between financial institutions is propelling the market. Blockchain and distributed ledger technology enhance AI adoption in the financial sector by providing new means to record, track, and store financial asset transactions.

Growing awareness of the benefits of cloud-based firewalls among small- and medium-sized organizations, particularly in developing nations, will create numerous opportunities for market expansion. For instance, in May 2022, The Czech Republic Finance Ministry, a government ministry in charge of economic policy, revenue service, insurance, the government budget, banking, and security, initiated a project to maximize the potential of fintech apps and data used in financial services in the country. The project was implemented by the Organization for Economic Cooperation and Development and funded by the European Union in collaboration with the European Commission's DG REFORM-Directorate-General for Structural Reform Support.

Furthermore, it will include a feasibility analysis of the possible formation of a sandbox in the Czech Republic and the prospects of data in financial services to let the fintech innovation be based on shared data. Fintech has been evolving in the investment management sector. Advanced technology and solution adoption, such as AI, big data, and machine learning, to assist businesses in evaluating investment possibilities, optimizing their investment portfolios, and mitigating related risks, have been significant in the technology adoption.

A prominent trend in AI in the fintech business is the widespread use and integration of smart mobile payment solutions as customers worldwide become more reliant on digital payment methods than traditional wallets. Many participants in the market provide payment platforms and are continually adding new features, such as voice commands and biometric access control, which includes fingerprint and facial recognition. For instance, in November 2021, Paytm, an Indian multinational financial technology provider, announced the launch of a new feature, 'Voice Trading', driven by AI, which allows customers to acquire stock information or place a trade with a single voice command. The voice trading function allows a single voice command to be processed instantly using neural networks and Natural Language Processing (NLP).

Artificial Intelligence in Fintech Market Segmentation

Grand View Research has segmented the global artificial intelligence in fintech market based on component, deployment, application, and region:

Artificial Intelligence in Fintech Market - Components Outlook (Revenue, USD Million, 2017 - 2030)

Solutions
Services
Managed
Professional

Artificial Intelligence in Fintech Market - Deployment Outlook (Revenue, USD Million, 2017 - 2030)

Cloud
On-premise

Artificial Intelligence in Fintech Market - Application Outlook (Revenue, USD Million, 2017 - 2030)

Virtual Assistant
Business Analytics & Reporting
Customer Behavioral Analytics
Fraud Detection
Quantitative & Asset Management
Others

Artificial Intelligence in Fintech Market - Regional Outlook (Revenue, USD Million, 2017 - 2030)

North America

U.S.
Canada
Mexico

Europe

U.K.
Germany
France

Asia Pacific

China
Singapore
India

South America

Brazil

Middle East & Africa (MEA)

List of Key Players of Artificial Intelligence in Fintech Market

Microsoft
Google LLC
Salesforce, Inc.
International Business Machines Corp.
Amelia US LLC
Nuance Communications, Inc.
ComplyAdvantage.com
Narrative Science
Affirm, Inc
Upstart Network, Inc.
Instructure, Inc.
Intel
Inbenta Technologies
Amazon Web Services
Oracle

Check out more related studies published by Grand View Research:

AI In Asset Management Market - The global AI in asset management market size is expected to reach USD 13.43 billion by 2027, according to a new report by Grand View Research, Inc., expanding at a CAGR of 37.1% from 2020 to 2027. Artificial intelligence in asset management refers to the automation of IT assets lifecycles with intuitive workflows and making informed decisions about asset vendors and capacity. Asset and wealth management firms are exploring potential artificial intelligence-based solutions to improve their investment decisions and extract insights out of their historical data. The current landscape of artificial intelligence (AI) applications in asset and investment management includes the management of digital assets and physical assets and investment advisory consumer applications. For instance, The Vanguard Group, Inc., a U.S.-based investment firm, offers the PAS (Personal Advisor Services), which runs on automated algorithms and can potentially prompt customers with investments-related advisories with insights from human advisors.
Edge Artificial Intelligence Chips Market - The global edge artificial intelligence chips market size is expected to reach USD 9.5 billion by 2027, according to a new report by Grand View Research, Inc. The market is anticipated to register a CAGR of 21.3% from 2020 to 2027. Semiconductor companies are experiencing high demand for their existing chips with hardware serving as a differentiator in AI. Also, these companies are developing workload-specific (training and inference) AI accelerators. For instance, Apple has implemented a neural engine in its A11 Bionic chip's processor to speed-up the third-party applications. The market is growing rapidly with the rising implementations of edge-based AI in smartphones and autonomous vehicles.
Artificial Intelligence in Telecommunication Market - The global artificial intelligence in telecommunication market size is expected to reach USD 9.3 billion by 2027, according to a new report by Grand View Research, Inc. The market is anticipated to register a CAGR of 38.4% from 2020 to 2027.

Browse through Grand View Research's Next Generation Technologies Industry Research Reports.

About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.

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