The AI in BFSI market is expected to reach $20,017.9 million by 2024, registering a CAGR of 37.2% during the forecast period. Growing IT industry, increasing mobile internet penetration, shift from traditional banking toward digital banking, and rising number of investments by banks in AI, are the factors contributing to the growth of the market, globally, according to P&S Intelligence.
Insights into the market segments
On the basis of solution, the global AI in BFSI market is segmented into chatbot, customer behavior tracking, CRM, fraud detection, data analytics & visualization, and others, wherein ‘others’ include recommendation engine and visual search. Of these, the chatbots category holds the largest revenue share in 2018. This is primarily due to increasing demand for personalized service among customers in banks, financial institutions and thereby supporting in improving customer experience. Moreover, chatbot act as a personal finance assistant and support customers at each stage of banking. They provide information to customers regarding various offerings of the bank in terms of promotional schemes, customer support and additional banking services, making their utilization, beneficial and cost efficient for the BFSI sector.
Based on technology, NLP is projected to witness fastest growth during the forecast period. This could be attributed to the growing utilization for NLP in back office operations and text-mining. Further, NLP supports in discovering customer behavior by monitoring social media and analyzing conversations about the organization’s services delivered to a customer. Hence, rising use of machine learning and NLP for enhancing customer service and predicting human behavior is driving the growth of AI in BFSI market.
On the basis of end-use, AI in BFSI market is categorized into banks, insurance companies, and wealth management. Among these, banks held the largest share in the market in 2018. This is due to the increasing deployment of AI-enabled solutions in the BFSI sector for acquiring new clients, predict client needs, build strong relationship, and reduce cases of money laundering. For instance, in May 2018, Bank of America Corporation launched AI-based virtual assistant, Erica. It can perform various financial operations including, transfer of money, providing a weekly snapshot of month-to-date spending, and alerting customers about upcoming recurring charges.
North America was the largest revenue generating region in the AI in BFSI market in 2018. The major factors driving the market growth include increasing number of investments in AI and fintech sector by banks, and financial institutions. Moreover, advanced IT infrastructure, and early adoption of technology are also contributing in the expansion of AI in BFSI market. AI-based technologies such as machine learning, NLP, fraud detection & analytics enable banks to offer personalized user experiences and better understand customer behavior. Thus, due to increasing deployment of AI-based solutions by banks in the region, the AI in BFSI market is projected to further grow during the forecast period.
Browse report overview with 93 tables and 71 figures spread through 171 pages and detailed TOC on "AI in BFSI Market Research Report: By Offering (Chatbot, Customer Behavior Analytics, CRM, Data Analytics & Visualization, Fraud Detection), Technology (Machine Learning, NLP, Computer Vision), End-Use (Banking, Insurance, Wealth Management), Regional Insight (U.S., Canada, UK, Germany, France, Russia, Italy, China, India, Japan, South Korea, Australia, Mexico, Brazil, U.A.E, Saudi Arabia, Turkey, South Africa) – Industry Size Analysis and Growth Forecast to 2024" at:https://www.psmarketresearch.com/market-analysis/artificial-intelligence-in-bfsi-market
Digital disruption across the globe is driving the adoption of AI in BFSI industry
AI in BFSI Market Competitive Landscape
AI in BFSI is an emerging market; where the AI technology is expected to witness rapid adoption, especially in U.S., Germany, U.K., and various developing countries such as China and India, by the year 2030. Presently, Top companies like IBM Corporation, Salesforce.com Inc., Oracle Corporation, and Microsoft Corporation, are estimated to hold major market share, thereby, consolidating the market.
Some of the key players in the market include IBM Corporation, Microsoft Corporation, Google Inc., Inbenta Technologies Inc., Intel Corporation, Lexalytics Inc., Salesforce.com Inc., Oracle Corporation, SAP SE, and Amazon Web Services Inc.
AI in BFSI Market Segmentation
Market Segmentation by Offering
Market Segmentation by Technology
Market Segmentation by End-Use
Market Segmentation by Geography