Dublin, February 8, 2024 (GLOBE NEWSWIRE) — The “AI in FinTech Market Size and Share Analysis – Growth Trends and Forecasts (2023-2028)” the report has been added to ResearchAndMarkets.com’s offer.
The dynamic landscape of the financial sector continues to undergo significant transformation, thanks to the integration of artificial intelligence (AI). This report highlights the booming market of AI in the Fintech market, paving the way for a new financial and technological era. By 2023, the market value is estimated at USD 42.83 billion and is expected to grow impressively to reach USD 49.43 billion by 2028, propelled by a constant CAGR of 2.91% during the period forecast.
One of the main factors contributing to this exponential growth is the impact of the COVID-19 pandemic, which has radically changed the interaction between financial services and customers. The payments and wealth management industries, in particular, have strengthened their infrastructure in the face of increasing transaction volumes, spotting the critical need for AI inherent in generating revenue from these transactions. This trend is expected to spearhead the growing demand for AI solutions in the Fintech market.
Market Highlights Led by Novel Tech
The role of AI in financial growth
Financial institutions, which have always embraced IT technologies, are at the forefront of harnessing the capabilities of AI. From mind-blowing calculations to sophisticated data analytics, AI has strengthened the arsenal of fintech companies. This revolution in computing power is undeniably a catalyst for market growth.
Improved customer relations thanks to AI
AI and machine learning are a game changer for the banking industry, enabling in-depth processing of customer data. This mastery of technology has proven essential in delivering services and products in a timely manner, cementing customer relationships.
AI-powered fraud detection is on the rise
Fraud detection technologies have gained momentum, given their propensity to detect anomalies in real time. The rise in bank fraud incidents, reported by authorities around the world, highlights the urgent need for robust AI solutions for fraud prevention and risk management.
North America dominates the market
North America claims the lion’s share of the AI market in fintech, thanks to a thriving ecosystem of AI providers and increasing investments in AI projects. The presence of a strong business hub for AI Fintech companies further consolidates the region’s dominance.
Adoption and initiatives
In North America, government investments and initiatives in AI are remarkable. For example, U.S. government spending on AI contracts in fiscal year 2022 reached a staggering $3.3 billion. Strategic partnerships and acquisitions between major market players are expected to redefine the competitive landscape, with the aim of fueling innovation and strengthening market presence.
Notable developments and collaborations
Recent strategic alliances demonstrate the industry’s trajectory toward leveraging AI for improved customer service. Mastercard’s partnership with Network International and Zest AI’s collaboration with Equifax illustrate the market’s commitment to leading transformation in the Fintech sector.
Emerging trends in the AI in Fintech market depict an industry poised for disruption and growth, driven by technological advancements and strategic market positioning. This analysis serves as an invaluable resource for industry players looking to navigate the complexities of the AI landscape in Fintech.
The results summarized in this analysis are indicative of a dynamic market, on the cusp of transformative growth, with the proliferation of AI applications in fraud detection and improved customer experience, opening the path to the future of financial services.
Key information for market participants
- The increasing integration of AI in financial operations presents lucrative growth prospects.
- Emerging applications of AI in fraud detection have strong potential for market expansion.
- North America’s pioneering role is crucial, setting benchmarks for global AI fintech efforts.
The market trajectory is further shaped by the growing awareness and adoption of AI by industries, heralding an era of intelligent fintech solutions that are reshaping financial landscapes globally.
A selection of companies mentioned in this report include:
- IBM Company
- Intel Company
- ComplyAdvantage.com
- Narrative science
- Amazon Web Services Inc.
- IPsoft Inc.
- Next IT company
- Microsoft Company
- Onfido
- Ripple Labs Inc.
- Active.AI
- TIBCO software (Alpine Data Labs)
- Trifacta Software Inc.
- Data Minr Inc.
- Gold of time
- Sift Science Inc.
- Pefin Holdings LLC
- Improvement Titles
- WealthFront Inc.
For more information on this report, visit https://www.researchandmarkets.com/r/8f60f2
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