Dublin, February 08, 2024 (GLOBE NEWSWIRE) — The “AI in Fintech Market Size and Share Analysis – Growth Trends and Forecast (2023-2028)” the report has been added to ResearchAndMarkets.com’s offer.
The dynamic landscape of the financial sector continues to undergo significant transformations, driven by the integration of artificial intelligence (AI). This report highlights the rise of AI in the fintech market, ushering in a new era of finance and technology. By 2023, the market value is estimated at USD 42.83 billion and is projected to grow impressively to reach USD 49.43 billion by 2028, driven by a steady CAGR of 2.91% during the forecast period.
One of the powerful 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 sectors, in particular, have been strengthening their infrastructures amid rising transaction volumes, spotting the critical need for AI to drive revenue from these transactions. This trend is expected to spearhead the growing demand for AI solutions in the fintech market.
Market strengths thanks to new technologies
The role of AI in financial growth
Financial institutions, which have always embraced computing technologies, are at the forefront of harnessing AI’s capabilities. 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 relationships with AI
Artificial intelligence and machine learning are revolutionary tools for the banking sector, enabling in-depth processing of customer data. This technological mastery has proven essential to deliver services and products on time, thus strengthening customer relationships.
AI-powered fraud detection is booming
Fraud detection technologies have gained momentum given their ability to detect anomalies in real-time. The rise in banking 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 holds the lion’s share of the AI market in Fintech, thanks to a thriving ecosystem of AI vendors 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, the US government’s spending on AI contracts in fiscal year 2022 reached an impressive $3.3 billion. Strategic partnerships and acquisitions among major market players are expected to redefine the competitive landscape, with the aim of driving innovation and strengthening market presence.
Notable developments and collaborations
Recent strategic alliances demonstrate the industry’s desire to leverage AI to improve customer service. Mastercard’s partnership with Network International and Zest AI’s collaboration with Equifax illustrate the market’s commitment to leading the transformation of the fintech sector.
Emerging trends in the AI in Fintech market illustrate a sector ripe for disruption and growth, driven by technological advancements and strategic market positioning. This analysis is an invaluable resource for industry players looking to navigate the complexities of the AI in Fintech landscape.
The findings summarized in this analysis are indicative of a dynamic market poised for transformative growth, with the proliferation of AI applications in fraud detection and customer experience enhancement paving the way for the future of financial services.
Key information for market players
- The increasing integration of AI into financial operations offers lucrative growth prospects.
- Emerging applications of AI in fraud detection have strong potential for market expansion.
- North America’s pioneering role is critical, setting benchmarks for global Fintech efforts in AI.
The market trajectory is also shaped by increased industry awareness and adoption of AI, signaling an era of intelligent fintech solutions that are reshaping financial landscapes globally.
A selection of companies mentioned in this report includes:
- IBM Company
- Intel Corporation
- ComplyAdvantage.com
- Narrative science
- Amazon Web Services Inc.
- IPsoft Inc.
- Next IT Company
- Microsoft Corporation
- Onfido
- Ripple Labs Inc.
- Active.AI
- TIBCO Software (Alpine Data Labs)
- Trifacta Software Inc.
- Minr Data Inc.
- The gold of time
- Sift Science Inc.
- Pefin Holdings LLC
- Betterment Holdings
- WealthFront Inc.
For more information about this report, visit https://www.researchandmarkets.com/r/8f60f2
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