Global AI in Fintech Market - Segmented by Type (Solutions, Services), Application (Chatbot, Credit Scoring, Quantitative and Asset Management, Fraud Detection), and Region - Growth, Trends, and Forecast (2018 - 2023)
AI in Fintech Market was worth USD 1.27 billion in 2017 and is projected to reach USD 7.28 billion by 2023 registering a CAGR of 33.8% over the period 2018 - 2023. The scope of the report is limited to type, such as solutions and services and by application, including chatbot, credit scoring, quantitative and asset management, fraud detection, and others. The regions considered in the scope of the report include North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The study also emphasizes the benefits of AI in fintech in accordance with diverse application and future prospect of the same.
Financial companies were early adopters of a relational database and mainframe computers, moreover, the industry is one of the early integrators of artificial integration in their daily operation to enhance the customer experience and handle growing big data. The inclusion of artificial intelligence improves results through implementation of sophisticated algorithms and understanding consumer behavior. The ever-increasing number customers in the financial industry are giving tough times to accommodate and attend every service request humanely whereas Chabot, an automated chat box helps in monitoring and replying near a specific resolution to consumers is expected to have a positive impact on the market growth over the forecast period. The rising number of frauds in this industry is mitigated through the utilization of artificial intelligence by collecting big data wherein the machine learns the pattern and monitors user behavior and takes action or report accordingly.
Growing Internet Penetration
Fintech space is one of the fastest growing industries across the globe owing to rising penetration of internet users. The users are rapidly switching to mobile devices to perform a transaction or related actions, owing to rising ease and growing internet user base. The third-party applications such as WhatsApp have integrated in-app transaction system in specific regions including the Asia Pacific. This will raise the bar for cyber-attacks and possibilities for fraud owing to which the incorporation of artificial intelligence is expected to gain traction and propel the market growth over the forecast period.
Chatbot to be the Fastest Growing
There are numerous applications of artificial intelligence in fintech industry; however, the rapid increase in user base is fueling the need to handle customer’s issue more efficiently and effectively. Moreover, various companies are implementing the concept of chatbot to ensure the resolution of every query of new and existing consumers which will not only gain the trust of customers but enhance the experience, which is, in turn, expected to impact the market growth over the next six years positively.
Asia Pacific to Witness the Highest Growth
Asia Pacific has the largest population in the world, and is expected to be one of the fastest growing economies across the globe including Hong Kong, Singapore, and India. The mentioned countries are vying to the finest and quality fintech hubs in the region, owing to which, the adoption of artificial intelligence in the industry is expected to be highest thereby fueling the market. Furthermore, the fintech industry coupled with technological innovation is augmented by the availability of venture capital, need for alternative financial instruments and startup culture, which is likely to boost the market growth over the projected period.
Key Developments in the Market
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