AI in FinTech Global Market Report 2024

The AI in fintech market size has grown exponentially in recent years. It will grow from $11.35 billion in 2023 to $14.41 billion in 2024 at a compound annual growth rate (CAGR) of 27.1%. The past growth can be credited to factors such as effective risk management and fraud prevention measures, improved customer experience, automation of repetitive tasks, utilization of data analytics for informed decision-making, as well as the implementation of algorithmic trading and investment strategies.

The AI in fintech market size is expected to see exponential growth in the next few years. It will grow to $39.44 billion in 2028 at a compound annual growth rate (CAGR) of 28.6%. Anticipated growth in the upcoming period is expected to stem from the broader adoption of chatbots and virtual assistants, a heightened emphasis on regulatory compliance, and the utilization of robo-advisors for wealth management. Notable trends foreseen during this period include the automation of regulatory compliance processes, the implementation of alternative credit scoring models, recommendations for cross-selling and upselling, leveraging AI for cybersecurity enhancements, and the automation of decentralized finance (DeFi) operations.

The imperative for fraud detection within fintech and financial institutions significantly fuels the expansion of AI in the fintech market. Artificial intelligence, powered by machine learning algorithms, has the capacity to assimilate new data, progressively enhancing its learning with each dataset processed. This continuous learning curve enables banks to gain deeper insights through AI technology. A key advantage lies in the algorithm's ability to evolve over time by accumulating and assimilating more data, thus perpetually refining its capabilities. According to PricewaterhouseCoopers's 2022 survey of UK-based financial service providers, 46% of organizations reported incidents of fraud, corruption, or economic crimes in the preceding 24 months. Additionally, as of September 2021, FintechNews reported an unprecedented adoption of AI-based solutions by banks, with investments exceeding $217 billion in AI applications for middle-office functions, particularly in fraud prevention and risk assessment. This pressing need for fraud detection within fintech continues to propel the market growth for AI in fintech.

The burgeoning presence of small-scale enterprises significantly contributes to the projected growth of AI within the fintech market. These enterprises are characterized by their smaller operational scale, workforce, and financial capacities in comparison to larger corporations. AI in fintech holds various applications and advantages tailored for small enterprises, facilitating streamlined operations, improved decision-making processes, enriched customer experiences, and reduced financial risks. As highlighted by Forbes Media LLC in December 2022, the United States witnessed the establishment of approximately 1.1 million new small businesses between March 2020 and March 2021. This surge in the number of small-scale enterprises is poised to be a key driver propelling the expansion of AI adoption within the fintech sector.

The surge in technological advancements stands out as a significant trend in the AI within the fintech market. As seen in India in 2021, the rise of Robo-advisory technology represents digital platforms offering financial counsel through AI-powered software, operating without human intervention. These platforms guide individuals in selecting suitable stocks and provide recommendations for potential replacements within their portfolios, considering factors such as valuations, governance, and performance among other pertinent criteria.

Prominent entities within the AI in fintech sector are directing efforts toward pioneering technologies such as AI-based wealth management platforms. These solutions harness the power of artificial intelligence and machine learning algorithms to deliver tailored and automated investment strategies and financial planning services. A case in point is TIFIN, a US-based fintech company, which introduced 'TIFIN.AI' in July 2023. These advancements in wealth management elevate advisory services and product offerings across various spheres, encompassing client portfolio insights for advisors, exploration of alternative investment avenues, workplace wealth management services, and addressing insurance-related considerations, among a spectrum of applications.

In June 2023, CircleUp, a US-based fintech firm, strategically acquired Brightflow AI for an undisclosed sum. This acquisition serves as a pivotal move for CircleUp, aiming to enhance its cash flow management and drive informed decision-making through data-driven insights. By integrating Brightflow AI's financial intelligence toolkit into its operations, CircleUp endeavors to synergize its existing data and machine learning capabilities, thereby pioneering a comprehensive solution tailored specifically for consumer companies seeking strategic guidance in expanding their businesses. Brightflow AI, also based in the US, specializes in providing a robust financial intelligence platform.

Major companies operating in the AI in fintech market report are Alphabet Inc., Microsoft Corporation, Klarna Inc., Amazon Web Services Inc., Intel Corporation, International Business Machines Corporation, PayPal Holdings Inc., Square Inc., Salesforce.com Inc., Stripe Inc., Social Finance Inc., Robinhood Markets Inc., Nuance Communications Inc., Affirm Inc., Revolut Ltd., Adyen N.V., Ant Financial Services Group, On Deck Capital Inc., Kabbage Inc., Plaid Inc., IPsoft Inc., Onfido Limited, Betterment LLC, Funding Circle Limited, Wealthfront Corporation, Kensho Technologies Inc., Inbenta Technologies Inc., Trifacta Inc., Next IT Corporation, Zeitgold GmbH, ZestFinance Inc., Ayasdi Inc., Feedzai Inc., Numerai LLC, Riskified Ltd., Oscar Health Inc., Ripple Labs Inc., Chainalysis Inc., ThetaRay Ltd., Darktrace Limited, TruValue Labs Inc., Wealthsimple Inc., TrueAccord Corporation.

North America was the largest region in the AI in fintech market in 2023. The regions covered in the AI in fintech market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the AI in fintech market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary product categories encompass solutions and services. AI solutions in fintech entail decision-making tools, automated customer support systems, fraud detection mechanisms, claims management platforms, and automated virtual financial assistants. These solutions are deployed through cloud-based and on-premise models. Their applications span asset management, risk investigation, business analytics, regulatory compliance, data collection, predictive analytics, virtual assistance, and various other functionalities within the fintech domain.

The AI in fintech market research report is one of a series of new reports that provides AI in fintech market statistics, including AI in fintech industry global market size, regional shares, competitors with an AI in fintech market share, detailed AI in fintech market segments, market trends and opportunities, and any further data you may need to thrive in the AI in fintech industry. This AI in fintech market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The artificial intelligence (AI) in fintech market consists of sales of web development services, big data development services, custom software development, DevOps services, IoT development services, outsourcing software development. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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