AI in Fintech Market Research Report - Size, Share, Growth, Trends, COVID-19 Impact Analysis - Industry Forecast (2022 to 2027)

AI in Fintech Market Size (2022-2027)

The global AI in the Fintech market is recording a CAGR of 22.0%. The market is said to grow by USD 30.9 billion by 2027 from USD 6.55 billion in 2022.

Industry Overview
Artificial Intelligence is also known as man-made reasoning. AI is the topic that permits PCs to learn human knowledge and direct language via a deep AI and advanced coding calculations. Fintech is a mechanical development that means to perform with customary money-related strategies in the transport of money transactions. AI is changing the financial area. 
AI in the Fintech market is said to have quick expansion for development over the forthcoming years. Fintech or financial technology is the incorporation of advanced technologies accompanying financial services to strengthen investing and banking operations. In addition, AI is widely used in financial institutions for determining and avoiding fraud via digital banking channels. Artificial Intelligence (AI) in Fintech is used for operating robot advisors in supplying financial planning services depending on their budget, goals, financial standing, risk tolerance, and spending figures of the independents. 
There are different ways in which AI changes Fintech. Here are 5ways including:
Stronger Security
Enhancing human workers through automation
Improved Customer Service
Client risk profiling
Algorithmic Trading

Market Drivers
In addition, banks and financial institutions adopt Artificial Intelligence technologies to gear up information and automate the manual process performed traditionally by banks. Factors like rising data usage with growing business combinations and developed financial operations. The quick digitization of artificial intelligence and machine learning in banking, financial services, and insurance enterprise escalate the market growth throughout the foreseen period. Advanced technologies like the amalgamation of fintech solutions with machine learning, big data, and neural networks fuel the market growth. 
The easy availability of spatial data and growth in demand for automation in financial institutions swell the market strength. 
Market Restrains
However, the dearth of experienced professionals to use AI in Fintech and issues associated with data privacy obstruct AI in the Fintech market. 
Recent Market Developments
•    On April 29, 2022, Temenos introduced the eight propositions using the cloud and the new Explainable AI (XAI). These new technologies help banks in their immediate response to the COVID-19 pandemic crisis.

Segment Analysis
The global AI in the Fintech market is based on the component, deployment, and application area. 
AI in Fintech Market - By Component
•    Solutions
•    Software Tools
•    Platforms
•    Managed
•    Professional
The solutions segment is expected to grow at the highest CAGR rate.

AI in Fintech Market - By Deployment Mode

•    Cloud
•    On-premises
The on-premises deployment mode expands the market to a greater extent throughout the forecasted period. The on-premises deployment decreases the overall cost of the ownership. 
The cloud segment experiences consequential growth for AI in the Fintech industry. The cloud deployment growth owes to the benefits like an inexpensive and higher level of security.

AI in Fintech Market - By Application Area
•    Virtual Assistant (Chatbots)
•    Business Analytics and Reporting
•    Customer Behavioral Analytics
•    Others (includes market research, advertising, and marketing campaign)
By application area, the customer behavioral analytics segment is witnessed to grow at the highest CAGR growth pace. The segment determines all the threats associated with customers. In addition, to create demand for AI in the fintech future, regulatory and compliance management helps in changes and business analytics helps in recognizing customer behavior.

Regional Analysis
The AI in Fintech market in North America is spearheading the region. The region accounts for the highest share due to the high focus on innovations obtained from research and developments. The growth in North America attributes to rising investments in research and developmental activities with swift digitization. 
In 2022, as per the Digital Banking Report, the adoption rate of fintech services in Canada is 51%, and in the United States is 45%. The burgeoning growth of Artificial Intelligence in the Fintech market.  
The continuous economic extension has attracted subsequent investments in the fintech sectors. 
Europe is observing appreciable growth in the artificial intelligence field. The quick and wide adoption of fintech, digital ecosystem, and investments in the public domain propels market growth in Europe. 
The United Kingdom is having the highest and most prominent share of AI in the Fintech market. The government has spent a huge amount on research and development activities in the robotics field. The UK government has invested 17.3 million Euros in digital strategy, assisting the adoption of AI and robotics throughout the UK universities. Moreover, the country has spent over 84 million and was launched in NOVEMBER 2017 for robotics and AI research.  
However, Asia-Pacific is estimated to grow at a quicker pace during the evaluation period. Domestic enterprises have extended quickly and high technological advancements expand the market development. 
The occurrence of robust and prominent AI software and system suppliers elevates the market in Latin America. 
The Middle East and Africa have faced a shortfall in AI in the Fintech market. 
Bahrain and Dubai are the most advanced countries in the fintech market. For example, Dubai's AI Roadmap has partnered with IBM and has established the first AI lab. The partnership engaged the power of ML and AI for government and city services to surge the market growth.

Major players in the AI in Fintech Market
1. Microsoft (Washington, US)

2. Google (California, US)

3. (California, US)

4. IBM (New York, US)

5. Intel (California, US)

6. Amazon Web Services (Washington, US)

7. Inbenta Technologies (California, US)

8. IPsoft (New York, US)

9. Nuance Communications (Massachusetts, US)

10. (New York, US)

 COVID-19 Impact on AI in Fintech Market

The novel coronavirus (COVID-19) pandemic has severely affected the global economy. The severe crisis resulted in millions of deaths. The virus has originated in Wuhan, China, in December 2022. The virus has spread across different parts of the world affecting every business sector. The SARS-CoV-2 reagent is responsible for the sudden eruption of new coronavirus (COVID-19). World Health. Governments across the nations have imposed serious lockdown and strict social distancing measures to combat the virus. 
During the first two quarters of 2022, the COVID-19 pandemic has hit the global AI in the Fintech market adversely. Post lockdown, the market has experienced that financial institutions have adopted AI solutions to reach maximum potential customers and streamline their operational activities. During the pandemic period, the significance of data science and ML has increased. The initial wave of the epidemic displayed an increase of 10% to 20% in online and mobile banking throughout Europe. In addition, the interest of banks and other financial institutions in adopting machine learning and data science has continued and also towered during the COVID-19 pandemic crisis. Artificial Intelligence solutions help banks in surging revenue, reducing prices, and uncover previously unknown opportunities. 

Chapter 1.AI in Fintech Market – Scope & Methodology

1.1. Market Segmentation

1.2. Assumptionsa

1.3. Research Methodology

1.4. Primary Sources

1.5. Secondary Sources

Chapter 2.AI in Fintech Market – Executive Summary

2.1. Market Size & Forecast – (2021 – 2027) ($M/$Bn)

2.2. Key Trends & Insights

2.3. COVID-19 Impact Analysis

2.3.1. Impact during 2022 - 2027

2.3.2. Impact on Supply – Demand

Chapter 3.AI in Fintech Market – Competition Scenario

3.1. Market Share Analysis

3.2. Product Benchmarking

3.3. Competitive Strategy & Development Scenario

3.4. Competitive Pricing Analysis

3.5. Supplier - Distributor Analysis

Chapter 4.AI in Fintech Market Entry Scenario

4.1. Case Studies – Start-up/Thriving Companies

4.2. Regulatory Scenario - By Region

4.3 Customer Analysis

4.4. Porters Five Force Model

4.4.1. Bargaining Power of Suppliers

4.4.2. Bargaining Powers of Customers

4.4.3. Threat of New Entrants

4.4.4. Rivalry among Existing Players

4.4.5. Threat of Substitutes

Chapter 5.AI in Fintech Market - Landscape

5.1. Value Chain Analysis – Key Stakeholders Impact Analysis

5.2. Market Drivers

5.3. Market Restraints/Challenges

5.4. Market Opportunities

Chapter 6.AI in Fintech Market – By Component

6.1. Solutions

6.2. Software Tools

6.3. Platforms Services

6.4. Managed Service

6.5. Professional

Chapter 7.AI in Fintech Market – By Deployment Mode

7.1. Cloud

7.2. On-premises

Chapter 8.AI in Fintech Market – By Application Area

8.1. Virtual Assistant (Chatbots)

8.2.  Business Analytics and Reporting

8.3.  Customer Behavioral Analytics

8.4.  Others (includes market research, advertising, and marketing campaign)

Chapter 9.AI in Fintech Market, By Geography - Market Size, Forecast, Trends & Insights

9.1. North America

9.1.1. U.S.A

9.1.2. Canada

9.1.3. Mexico

9.2. Europe

9.2.1. Italy

10.2.2. Spain

9.2.3. Russia

9.2.4. Germany

9.2.5. UK

9.2.6. France

9.2.7. Rest of Europe

9.3. Asia Pacific

9.3.1. Japan

9.3.2. South Korea

9.3.3. China

9.3.4. India

9.3.5. Australia & New Zealand

9.3.6. Rest of Asia-Pacific

9.4. Rest of the World

9.4.1. Middle East

9.4.2. Africa

9.4.3. South America

Chapter 10.AI in Fintech Market – Company Profiles – (Overview, Product Portfolio, Financials, Developments)

10.1. Company 1

10.2. Company 2

10.3. Company 3

10.4. Company 4

10.5 Company 5

10.6. Company 6

10.7. Company 7

10.8. Company 8

10.9. Company 9

10.10. Company 10

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