Global AI in Fintech market is projected to reach USD 17440 Million by 2027, from USD 5350.8 Million in 2020, at a CAGR of 17.9% during the forecast period 2021-2027.
Major Factors Driving the Growth of AI in Fintech Market include:
The increasing need for Fintech companies to cut down their operational cost is expected to drive the growth of AI in fintech. Artificial intelligence in fintech is enabling businesses to reduce costs, automate processes, and reduce the likelihood of error.
The growing need for enhanced customer interaction is expected to drive the AI in Fintech market growth. FinTech companies are increasingly relying on AI based virtual assistance to solve customer queries and effectively interact with customers. Chatbots enable businesses to cut costs while increasing customer satisfaction.
Customer Behavioral Analytics offered by AI in fraud detections and claims management is expected to drive the growth of AI in the fintech market. Financial cybercrime is on the rise as a result of digital transformation, but thanks to AI and ML, both organizations and users can now protect themselves and their account data. Analytics tools gather evidence and analyze data that is required for conviction. Then, artificial intelligence tools learn and monitor user behavior patterns to identify the rarity and warning signs of fraud attempts and incidents.
The need for enhanced Business Analytics and Reporting is expected to further fuel the growth of AI in fintech market during the forecast period. The banking and finance sector needs to make sense of huge volumes of data for making critical decisions. Recognizing this, the industry has been quick to adopt AI to automate reporting in order to speed up and improve its decision-making processes. Predictive analysis can aid in the calculation of credit scores and the prevention of bad loans.